Q May a municipal utility contribute funds to an urban renewal authority?

A No, Section 21-27-19 lists acceptable uses for any surplus funds from the municipal utility. If a surplus exists, those funds can be used for “any other lawful municipal purpose;” however, these uses must be effectuated by either paying the funds to the governing authority of the municipality for distribution to the appropriate accounts or paying the funds directly for the purpose “at the discretion and request” of the governing authority of the municipality. The determination of which municipal purpose any such funds should be used for is a determination to be made by the municipality’s governing authority. Furthermore, municipal utility commissions should set rates as best as possible to cover the operational expenses and not to make a profit or surplus. (Attorney General’s Opinion to Ross, November 30, 2015)