The City of New Castle, Indiana

What is the difference between the general fund and the utilities fund?

The general fund is made up of revenues received by the city - primarily from real estate taxes, local income taxes or COIT (County Option Income Tax), taxes on cigarettes and gasoline, gaming revenues and fees for services rendered through the various departments of the city. New Castle has also benefited from the locally adopted food and beverage tax by receiving a grant from that commission for a capital project at Osborne Park. The City of New Castle operates both water and sewer utilities. The utilities are not funded with tax revenues. They are businesses, and stand alone as do other businesses. Their funds are generated through user fees or from the sale of water or sewer related services. Revenues are raised by the imposition of a rate structure upon those who utilize the services or purchase the commodity. That rate structure is established by the passage of a rate ordinance by the City Council.