Municipal Enterprise Activities as Revenue Generators: A Different View

Enterprise funds provide one means by which cities provide municipal goods and services to their residents while generating revenues to augment cities' other revenue-generating activities or substitute for other forms of revenue. Because municipal enterprises are accounted for in separate proprietary funds, determining the extent to which the revenues they generate are actually usable by non-enterprise functions is somewhat more difficult than we have generally presumed. I use data from a recent national survey of cities to demonstrate how common measures of municipal enterprise revenue generation may be misleading and propose a measure that will provide more reliable data for both researchers and municipal decision makers.