3 Accounting
3.9 Interfund Activities
3.9.3 Utility Surplus Transfers
This guidance applies only to cities.
3.9.3.10 Surplus – The amount by which operating revenues exceeds operating expenses. When determining the available surplus in a proprietary fund, the following must first be deducted from the proprietary fund balance: capital asset replacement cost, future capital expansions and improvements and any legally restricted resources.
3.9.3.20 The surplus can be transferred to the general (current expense) fund under the following circumstances:
- Second class cities may transfer the excess income to the general (current expense) fund (RCW 35.23.535).
- Cities under 20,000 (except first class) must transfer any surplus in utility funds to the general (current expense) fund unless the legislative body finds the money necessary for certain utility fund purpose (RCW 35.37.020).