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Council asks corporation counsel to review legality after $400K in water/sewer charges shifted off general fund
Summary
Finance staff removed about $400,000 in water and sewer indirect charges from general fund departments for FY2026 as a one-time measure; councilors questioned whether that creates an improper cross-subsidy and asked the law department to review Emerson v. Boston–style tests for CSO/utility charges.
Finance staff told the City Council Committee on Finance on June 11 that the FY2026 appropriation removes roughly $400,000 in water and sewer charges that general-fund departments would normally pay into the Water & Sewer enterprise funds.
Interim Finance Director Emily Arp said the change is a one-time measure to ease the general fund while the administration and the enterprise funds reconcile indirect-cost allocations. “The goal is to have it just be…it’s a one-time stop-gap measure for this year while we work through the indirect charges with water sewer,” Arp said. She said her office…
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