Q May a municipality round up its utility bills to the next highest dollar for the purpose of generating funds to make special improvements to the municipality?

A No. There is no authority to set utility rates at a level which would produce a surplus. A municipal utility should not be a profit making venture. The municipality should make a good faith effort in estimating the costs of operating the utility system and then set the rates accordingly to ensure that the revenues generated by the system cover the costs of operating the system including maintenance and improvements, and not result in a surplus. (Attorney Generalís Opinion to Rohman dated December 18, 2009)