Utility

Question 1

What is the statute for a Municipal public utility ?

Answer 1

40A: 1-1

Question 2

What statue is 40A: 1-1 ?

Answer 2

The Municipal Public Utility

Question 3

What is the definition of a Municipal Public Utility ?

Answer 3

Any water, sewer, electric power or gas system or any combination thereof or any public parking system or any other utility enterprise or purpose authorized to be untaken by a local unit from which it may receive fees rents or other charges

Question 4

What are some examples if operating assets?

Answer 4

Cash
Change Fund
Petty Cash
Interfund Receivables with no offset reserve
Consumer Accounts Receivable with offset reserve
Utility Liens
Other Receivables
Inventory Fixed Assets
Deferred Charged

Question 5

What are some examples of liabilities?

Answer 5

Appropriations
Appropriation Reserve
Reserve for Encumbrances
Accounts Payable
Interfund Payable
Accrued Interest on Bonds and Notes
Utility Overpayments
Pre-Paid Rents
Reserve for Consumer Accounts Receivable
Reserve for Liens
Fund Balance

Question 6

What is the practical definition of a utility?

Answer 6

A utility can be any enterprise operated by a government unit in which the revenues are sufficient to meet the requirements of operations and debt service of the enterprise.

Question 7

What are some types of a utility?

Answer 7

Water
Sewer
Water and Sewer
Pool
Electric
Airport
Golf Course
Recreation
Solid Waste
Harbor
Beach
Country Club
Parking

Question 8

How is a utility created?

Answer 8

A utility is created by the adoption of an ordinance by the governing body.

Question 9

Once a utility is created, what is set up to record the financial activity?

Answer 9

A chart of accounts is set up.

Question 10

What is required if commitments are to be made before the utility budget can be adopted?

Answer 10

An emergency appropriation.

Question 11

What laws are a utility operated under?

Answer 11

The Local Budget Law

The Local Bond Law

Question 12

What funds may a utility have?

Answer 12

Operating Fund but may also have a Utility Capital Fund and a Utility Assessment Fund.

Question 13

What does a utility operating fund consist of?

Answer 13

General Revenues
Operating Expenses
Capital Improvement Fund
Debt Service Appropriations

Question 14

What does a Utility Capital Fund consist of?

Answer 14

Debt Authorized
Bonds
Notes
Capital Appropriations
Capital Assets

Question 15

What does a Utility Assessment Fund consist of?

Answer 15

Assessments Recievable

Assessment Debt

Question 16

True of False. Does a utility need to have an operating budget?

Answer 16

Yes, a utility must have an operating budget adopted by the Governing Body along with the Municipal Budget.

Question 17

Are Utility Budgets subject to the provisions of the budget CAP Laws?

Answer 17

No, they are not subject to the provisions of the Budget CAP Laws.

Question 18

Does a temporary budget, transfers, deferred charges, emergency appropriation apply to utilities?

Answer 18

Yes.

Question 19

What is the statue for the Utility Budget?

Answer 19

40A:4-33

Question 20

What statue is 40A:4-33

Answer 20

Utility Budget

Question 21

Describe the utility budget.

Answer 21

They are a separate budget section.
Revenues cannot exceed appropriations.
Revenues cannot exceed prior year’s cash collections.

Question 22

What is the statue for a Utility Appropriations?

Answer 22

40A:4-34

Question 23

What statue is 40A:4-34

Answer 23

Utility Appropriations