(A) Creation of fund. There is hereby created a Sewer and Water Capital Expansion Fund which shall be a segregated fund created on the books of the village and accounted for separately.
(B) Investment. A money deposited in the fund together with the interest earned thereon shall be invested by the Village Treasurer in investments permitted in § 1.(a)(c)(d) or (e) of Public Act 20 of 1943, being M.C.L.A. §§ 129.91 through 129.96, as amended.
(C) Expenditure. Out of the money generated by rates on deposit in the fund, the following priority of expenditure shall be observed.
(1) Out of the monies in the fund, there shall first be set aside an amount equal to:
(a) One-third of the amount owing by the village to the county under a contract between the village and the County of Saginaw dated as of June 1, 1990, pursuant to which the county issued bonds except that the amount shall be reduced by whatever amount (if any) less than $1,500,000 in principal amount the bonds were originally issued. This amount shall be paid to the village in semi-annual installments as the village is required to make its payments to the county beginning July 1, 1996.
(b) In the event the Township of Birch Run connects to the sewer system and pays the village its share of the cost of the joint sewer line to Genesee County on or before July 1, 1995, the amounts to be paid to the village under division (C)(1)(a) above shall be reduced by any amounts received by the village from the Township of Birch Run.
(2) Once the amounts required by division (C)(1) above have been paid (or are set aside for future payments) there shall next be set aside funds to be used for capital improvements to the system.
(1992 Code, §§ 85.005 - 85.007) (Ord. 2-91, passed 6-14-1991)