Final answer:
The fees collected by a city from the use of a public swimming pool should be recorded in an Enterprise Fund. This type of fund is used for services that are funded through user charges and operate similarly to business activities.
Step-by-step explanation:
When a city collects fees from citizens who use the public swimming pool, the money should be recorded in an Enterprise Fund. These funds are used to track the financial operations of municipal services that are funded primarily through user charges, similar to business activities. The city provides many services, and the sources of funding can include property tax revenue, user fees, sales tax receipts, and business taxes. The public swimming pool is an example of a public good where the city provides access to the facility, but charges a fee to cover the costs of operations, maintenance, or capital improvements. An Enterprise Fund is appropriate for this kind of service because it operates much like a private business, and the fees are used to support the continued provision of the service.
An Enterprise Fund is a type of fund used in governmental accounting to track the activities of a government entity that operates like a business and provides goods or services to the public in exchange for a fee. Since the city is collecting fees from citizens for using the public swimming pool, it falls under the category of an enterprise.