Utility Fund Accounting Overview Flashcards
A shortcoming in Utility Fund must be raised in the _______ _______.
Current budget
A surplus in the Utility Fund SHALL be included in ______ ______
Current budget
Deemed to be self liquidating if cash receipts from fees, rents, and other charges are sufficient to meet what?
Operating and maintenance expenses &
Interest and debt redemption charges
Utility with BPU oversight has a ____% surplus limit
5%
Self liquidating debt calculation done annually on _______ _______ ________.
Annual Debt Statement
When is Annual Debt Statement due?
January 31
Calculation of new debt is done on _____ _____ _____.
Supplemental Debt Statement
Unlike Current Fund, Utilities accrue _______.
Interest
Interest Accrual as of 12/31 is shown on ________.
Utility Operating Balance Sheet
Shortfall in Interest Accrual must be appropriated in _____ _____.
Operating budget
Information needed to calculate the interest accrual is found in the _____ _____.
Capital Fund
A shortcoming in Utility must be raised in ____ ____.
Current Fund
Utility Budgets are NOT subject to the provisions of what?
The budget CAP laws
What are the three different Utility funds?
Utility Operating Fund
Utility Capital Fund
Utility Assessment Fund
Name components of the Utility Operating Fund
General Revenues
Operating Expenses
Capital Improvement Fund
Debt Service Appropriations
Name components of the Utility Capital Fund
Debt Authorized Bonds Notes Capital Appropriations Capital Assets
Name components of the Utility Assessment Fund
Assessments Receivable
Assessment Debt
Name types of Utilities
Water Sewer Electric Solid Waste Parking Pool Recreation
A Utility is created by _____.
The adoption of an Ordinance by the Governing Body
Once a Utility is created, a _______ is set up to record the financial activity.
Chart of Accounts
An ______ may be required if commitments are to be made before the Utility Budget can be adopted.
Emergency Appropriation
If cash receipts from fees, rents and other charges are sufficient to meet operating and maintenance expenses and interest and debt redemption charges, a Utility is deemed to be ______.
Self-liquidating
A Utility Debt is a Deduction from _____.
Net Debt
If Utility will remain self liquidating with new debt, no _____ is required for Debt Authorizations.
Down Payment
A Utility can be Self Liquidating during Construction with approval of _______.
Local Finance Board
List Operating Liabilities:
Appropriations Appropriation Reserves (Prior Year Budget) Reserve for Encumbrances Accounts Payable Interfund Payable Accrued Interest on Bonds & Notes Utility Overpayments Pre-Paid Rents Reserve for Consumer Accounts Rec Reserve for Liens; Other A/R Fund Balance
Give 5 reasons a town would want to set up a Utility
- No Down Payment on Debt
- No Levy CAP
- No Appropriation CAP
- User Base is Limited
- Use Base includes exempt properties
- Match Program Costs to Users
What is the difference between a Utility and an Authority?
- Utility is owned by Local Government, Authority is owned by an autonomous agency
- Local Government Body oversees Utility, Appointed Board of Directors oversees Authority
- Utility is created by Ordinance, Authority is created by Ordinance w/ prior approval of Local Finance Board
- Utility is funded as part of Municipal Budget, Authority has an independent budget
Factors to consider when creating Utility Rate Structure:
Actual Revenue vs Actual Expenses for 2-3 years prior
Review CY Revenue & Expenses vs Budget
Project expenses going forward
Divide Annual Projected expenses by the number of Utility Units
Determine assumptions for various types of expenses
Is a Utility required by statute to be self-liquidating?
No
