GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2017

H                                                                                                                                                    1

HOUSE BILL 503

 

 

Short Title:      Local Budgets/Public Enterprise Funds.

(Public)

Sponsors:

Representative Ford.

For a complete list of sponsors, refer to the North Carolina General Assembly web site.

Referred to:

State and Local Government II, if favorable, Finance

March 29, 2017

A BILL TO BE ENTITLED

AN ACT providing that local governments and public authorities shall not appropriate funds from a utility or enterprise fund to any other fund other than the appropriate debt service fund.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 159‑13 reads as rewritten:

"§ 159‑13.  The budget ordinance; form, adoption, limitations, tax levy, filing.

(b)        The following directions and limitations shall bind the governing board in adopting the budget ordinance:

(14)      No appropriation may be made from a utility or public service enterprise fund to any other fund than the appropriate debt service fund unless the total of all other appropriations in the fund equal or exceed the amount that will be required during the fiscal year, as shown by the budget ordinance, to meet operating expenses, capital outlay, and debt service on outstanding utility or enterprise bonds or notes. A county may, upon a finding that a fund balance in a utility or public service enterprise fund used for operation of a landfill exceeds the requirements for funding the operation of that fund, including closure and post‑closure expenditures, transfer excess funds accruing due to imposition of a surcharge imposed on another local government located within the State for use of the disposal facility, as authorized by G.S. 153A‑292(b), to support the other services supported by the county's general fund.

…."

SECTION 2.  This act becomes effective July 1, 2017.