Interest on Utility Assessment Debt must be appropriated in which budget?

The correct budget for appropriating interest on Utility Assessment Debt is the Utility Operating Budget. This is because Utility Assessment Debt is directly related to the operations of the utility, and the funding for debt service associated with this type of debt comes from the revenues generated by the utility itself.

Utilizing the Utility Operating Budget allows a municipality to allocate necessary financial resources to cover interest payments, ensuring that the utility can meet its obligations while also operating efficiently. This budget typically incorporates all revenues and expenditures associated with the utility’s functioning, including the costs incurred from previously issued bonds or debt necessary for capital improvements or expansions.

In contrast, other budgets such as the General Operating Budget or the Capital Budget are not directly aligned with the funding and operational expenditures specific to utilities. Thus, they would not be suitable for managing the financial obligations related to Utility Assessment Debt.