Which department usually issues RANs for utilities?

The Utility Department typically issues Revenue Anticipation Notes (RANs) for utilities because it is specifically tasked with the operation, management, and financial oversight of utility services within a municipality. RANs are short-term financing instruments used by municipalities and public agencies to meet temporary cash flow shortages, particularly in operations like water, electricity, or gas services, where there may be a lag in revenue collection after expenses have been incurred.

This department possesses the expertise and knowledge regarding utility operations, budget projections, and revenue cycles, making it well-suited to assess the need for and the implications of issuing RANs. The Utility Department understands the distinct revenue streams involved and can effectively forecast future income, ensuring that the notes can be paid off when the anticipated revenues are received.

Other departments, such as the Finance Department, may play a supportive role in the overall financial management and bond issuance processes but typically do not directly issue RANs for utilities. The Public Works Department focuses on infrastructure and maintenance rather than direct financial management. The Administrative Department generally handles administrative tasks across various departments and does not specialize in utility financing.