PUBLIC NOTICE - Enterprise Fund Transfer

NOTICE TO SPANISH FORK CITY UTILITY CUSTOMERS
 

State law requires that the City provide an annual disclosure on funds transferred from a utility enterprise fund to any other fund. The City has budgeted a set percentage transfer from each of the Utility Enterprise Funds to the General Fund.


The City of Spanish Fork has budgeted for the transfer of 4.0% of each utility’s revenues from the utility’s retail rate to the general fund as a dividend to Spanish Fork taxpayers. This dividend is the result of the taxpayers’ investment in the City’s utility infrastructure. These funds are used each year to help cover costs of important city services like police, fire, library, senior center, parks and recreation, and other city functions. The utility transfer helps keep property taxes low in Spanish Fork. If City utility services were provided by private utility vendors, these dividends would instead be paid to the private investor-owners. Because Spanish Fork taxpayers are the investor-owners, these dividends are used to offset what otherwise would be a significant increase in property tax rates. These transfers are of funds which cannot be defined as reasonable allocation of costs between funds. These amounts will not be repaid.


The amounts of the transfers are as follows:

   Dollar Amount  % of Expenditures
 From the Water Fund to the General Fund  $ 228,750  2.66 %
 From the Sewer Fund to the General Fund   $ 218,891  0.97 % 
 From the Electric Fund to the General Fund  $ 1,016,869  3.62 % 
 From the Storm Drainage Fund to the General Fund  $ 96,308   0.63 % 
 From the Solid Waste Fund to the General Fund  $ 107,858  4.19 % 
 From the Broadband Fund to the General Fund  $ 256,762   3.02 %

 

Spanish Fork City also has a debt obligation that the Electric Fund is making payments on. The funds are to pay for the Police/Court Building. This transfer is for funds which cannot be defined as reasonable allocation of costs between funds. This amount will not be repaid.


The amount of the transfer is as follows:  

  Dollar Amount  % of Expenditures
From the Electric Fund to the Debt Service Fund $ 686,753  2.45 % 


A public hearing will be held on Tuesday, June 16, 2020 at 6:00 p.m. at the High Chaparral at the Spanish Fork City Fairgrounds, located at 475 South Main Street, Spanish Fork, Utah. The public hearing will be to discuss the proposed dividend transfers in the Fiscal Year 2021 Budget. The fiscal year begins July 1, 2020 and ends June 30, 2021.


Thank you for your support and involvement as a customer of Spanish Fork’s utilities.