Specific Enterprise Fund Information

09 May 2019

Notice from Nephi City to Nephi City Utility Customers:

Nephi City operates several utilities (enterprise funds) in addition to the traditional functions of local government operated by the city’s general fund.

The utility funds are charged a reasonable allocation of the costs of services provided by the general fund and shared by all funds (utility billing and collection, financial accounting, human resource management, legal, and insurance services, for example).

Additional contributions from the utility funds to the general fund are meant to represent a return on investment or dividend for investments made by the community in these utilities, as well as the value of community assets utilized by the utilities to carry out their functions (city-owned property and streets rights-of-way, for example). 

For Fiscal Year 2020 (July 1-June 30), the following are tentative dividend transfers projected to be made from utility funds to the general fund. The dividend transfers are the result of the community’s investment in these utilities, and the transfers help cover the costs of important city services, including police, streets, library, recreation services, parks, cemeteries, golf, and other city functions. These are not based on allocations of cost, but on a percentage of utility revenues, and will not be repaid:



% of Expenditures

Electric Fund



Natural Gas Fund



Water Fund



Sewer Fund



Solid Waste Fund



Beginning in Fiscal Year 2020,  General Fund and Utility Departments will begin to pay their share of all utility costs.  To assist with this difference in budgeting, the dividend transfers listed above were increased in the upcoming fiscal year.  This transfer from the utility funds is offset by increased revenues to the utilities from General Service departments and other utility departments.