Many Utility Enterprise Fund activities charge tap fees to their customers.Which of the following is most descriptive of those fees?
A)tap fees are assessed based on the amount of water a utility customer uses
B)tap fees replace capital grants
C)tap fees can only be used to purchase or construct capital assets
D)tap fees provide financing when a utility needs to expand its operating plant for new customers

Question

Quizplus · Accepted Answer

Tap fees are charged when a utility enterprise fund needs to expand its operating plant to accommodate new customers. These fees provide financing for the expansion and construction of capital assets to meet the needs of increasing demand. Tap fees are not typically assessed based on the amount of water a customer uses and are not meant to replace capital grants.

Many Utility Enterprise Fund Activities Charge Tap Fees to Their