The bill sponsor said that we’ve had a productive discussion

Intent is to ensure that enterprise funds are being used for purposes for which they were intended

Concern about overcharging residents

Cities are not using them to overcharge and transfer the excess back to general fund and bypassing truth in taxation

Bill does not prevent a transfer that is commensurate to the overhead costs

Saratoga Springs example

Review State Auditor’s definition of enterprise fund … restriction on proceeds is implied agreement between gov’t and rate payers

Intended purpose of these funds is a commensurate to costs

Examples in case law where cities are losing constitutional cases on enterprise funds

User fees must meet certain criteria to be valid: fee must be exchanged for particular government service, fee must be paid by choice and individual can avoid paying the charge, charges must be commensurate for expenses and not raise revenues

Unintended consequence of current code

What problem are we trying to solve? At  first, unsure of how many cities were doing this but based on the response there are many cities that are using the mechanism to artificially keep property taxes low

Raised concern about disclosure … I can confidently say that residents are unaware that they are overcharged on water, sewer, or other funds for general city purposes

Final thing is this is a policy decision and should not overcharge or move funds and worry about distrust with public or residents

Disputes “dividend” term and sees it as an excess charge

Eliason question to clarify GASBY and re-read GASBY and current local gov’t justification and CFOs signing the statement of compliance

Gov’t Acct Standard Board and Auditor’s office has provided on website … enterprise fund is separate fiscal entity designed to account for fund …

Lincoln: transfer money to other fund so as to pay, not pay for service out of the enterprise fund

King, Briscoe spoke against the bill

Sagers

Every year there’s an audit about appropriateness that is made public, where is the abuse of the process?

Lisonbee

Syracuse City reviewed internal allocation process and supposed to be reimbursements for other activities

This bill trying to reflect case law so that cities won’t get sued

WHAT IS THE CITATION?

Mayor Petersen testimony about negotiations with other cities for a waste water treatment plant, cost impact on Logan resident and breadth of tax base

Seth Perrins notice requirements

Justin Zollinger about the breadth of the rate payers