Enterprise Fund

Enterprise funds are set up to account for the acquisition and operation of governmental facilities and services that are intended to be primarily (over 50 percent) self?supported by user charges. Examples of enterprise funds are those used for utilities (often water and sewer), airports, and transit systems. Enterprise funds are required when any one of three criteria is met: the activity of the fund is financed by debt secured by a pledge of fee revenue; laws require collection fees adequate to recover cover costs; or pricing policies are established to produce fees that recover costs. See also proprietary funds and internal service fund.