Is it true that utility surplus may be appropriated by the governing body for use in the general municipal budget?

Utility surplus can indeed be appropriated by the governing body for use in the general municipal budget. This practice is typically allowed because surplus funds generated from utility operations, such as water, electricity, or sewage services, are considered additional revenue that can help offset general municipal expenditures.

When a municipality has a surplus from its utility services, it may choose to allocate these funds to support various programs or services that benefit the community. This flexibility is crucial, especially in times when the general budget may face shortfalls due to unexpected expenses or declining revenues. By utilizing utility surpluses, governing bodies can ensure the continuity of essential services without needing to raise taxes or cut other necessary programs.

It's important to note that while utility surpluses can be appropriated in this way, the process must comply with all applicable laws and regulations governing municipal finances. This includes proper budgeting processes, transparency, and, in some cases, the need for public input or voter approval depending on the jurisdiction's specific rules.

The other options reflect constraints that do not universally apply to the appropriation of utility surpluses in many municipalities. For instance, while voter approval may be required in some contexts, it is not a general rule across all municipalities for appropriating utility surplus into the general budget