What is an Enterprise Fund?

An enterprise fund is a self-supporting government fund that sells goods and services to the public for a fee. These funds are a good way to assure the long-term sustainability of a variety of government-owned infrastructure systems, since they do not require allocations of tax proceeds from the general fund.

An enterprise fund uses the same accounting framework followed by entities in the private sector, such as GAAP or IFRS.

Examples of Enterprise Funds

There are many situations in which enterprise funds may be used, including the following:

Utility Services

Water Utility Fund: Accounts for the operation and maintenance of a municipal water distribution system.
Sewer Utility Fund: Used for the management of wastewater treatment facilities and sewer infrastructure.
Electric Utility Fund: Tracks revenues and expenses for providing electricity to residents and businesses.
Gas Utility Fund: Manages the supply and distribution of natural gas.

Transportation Services

Public Transit Fund: Covers bus, subway, or light rail services where users pay fares for transportation.
Airport Fund: Accounts for the operation of municipally-owned airports, including landing fees and passenger service charges.
Parking Facilities Fund: Manages public parking garages and metered parking services.

Recreational and Cultural Services

Golf Course Fund: Tracks the operation of municipal golf courses, including green fees and pro shop sales.
Aquatic Center Fund: Manages public swimming pools or waterparks operated on a fee-for-service basis.
Stadium Fund: Covers the operation of publicly-owned sports stadiums or event venues.

Solid Waste and Environmental Services

Solid Waste Fund: Accounts for the collection, recycling, and disposal of garbage.
Landfill Fund: Tracks operations and maintenance of public landfill facilities, including tipping fees.

Health and Social Services

Public Hospital Fund: Covers the operations of municipally-owned hospitals or clinics.
Ambulance Services Fund: Manages emergency medical services that generate user charges.

Telecommunications and Technology

Municipal Broadband Fund: Tracks the provision of internet and telecommunications services to residents.
Cable TV Fund: Manages local government-run cable television services.

Other Specialized Services

Marina Fund: Accounts for the operation of public marinas or boat docks.
Cemetery Fund: Tracks the operations of municipally-owned cemeteries.
Convention Center Fund: Manages revenues and expenses for city-run convention or exhibition centers.
Stormwater Management Fund: Addresses the operation and funding of infrastructure for stormwater control and drainage.