(A) Water Deposit Fund established; administration of fund. The fiscal officer of the municipal water utility shall establish and maintain on the books of the utility a special nonreverting fund to be known as the "Water Deposit Fund." Every deposit tendered and received under § 52.36 shall be credited to this fund and to a specific book account in the name of the customer making the deposit. Moneys in the Water Deposit Fund shall be held in the manner of public trust funds and shall not be considered as revenues of the water utility nor of the civil town for any purpose but may only be applied and transferred or refunded as hereinafter provided. However, moneys in the fund may be invested in the same manner as other water utility funds in accordance with § 52.19 and other applicable laws and regulations, with the exception that should the utility hereafter be required to pay interest on the deposits by virtue of any statute, ordinance or PSC regulation, the investment shall be made in securities or accounts bearing interest at a rate not less than that which is required to be paid on the deposits, and the earnings from the investment sufficient to pay the interest shall accrue to the Water Deposit Fund and only the excess earnings, if any, shall accrue to the Water Utility Cash Reserve Fund.
(`86 Code, § 2-6-4)
(B) Application to customer's final bill; refund of remainder. When water service to any customer is permanently terminated for any reason, the fiscal officer of the utility within 15 days of the termination shall prepare a final bill for the customer reflecting all rates, costs or other charges then owing to the utility by the customer and unpaid through the date of termination of service from the gross bill, the fiscal officer shall deduct and credit the amount of the customer's deposit under § 52.36 and shall then send the customer (or his or her estate) a net bill if the amount owed exceeds the total amount credited to the customer's deposit account or shall send the customer (or his or her estate) a refund check written on the Water Deposit Fund in the amount by which the customer's deposit credit exceeds the amount of the gross final bill if the latter is the case. Deposit refunds when determined under this section shall be considered as trust and legal obligations of the Fund and may be paid without appropriation or allowance of the claim. All amounts deducted from the final bill shall be transferred from the Water Deposit Fund to the water utility and treated as revenues of the utility as though tendered in ordinary payment of the billings owed.
(`86 Code, § 2-6-5)
(C) Unrefundable deposit remainders; deduction of carrying costs from deposit account. The fiscal officer of the utility shall make all reasonable effort to deliver any deposit remainder (after deductions) owing to the customer under the provisions of division (B) of this section. However, if the refund cannot be made within 30 days after the date of the final bill, either because the customer's whereabouts cannot be ascertained or for any other good reason, the customer's deposit account shall be kept open and the deposit remainder continue to be credited thereto, without interest, until claimed by the customer or his or her legal representative. However, from and after such 30 days following the date of the final bill, carrying costs equal to 8.33% of the amount of the original unrefunded deposit remainder shall apply to the account each month and be deducted from the account until such time as the net deposit remainder is claimed or the total amount of the account is exhausted. Carrying cost deductions made under this section shall escheat to and become the property of the town and shall be transferred to the Water Utility Cash Reserve Fund, and the customer (or his or her estate) shall have no further claim on such moneys.
(`86 Code, § 2-6-6)
(D) Subordination of rules and procedures to superior statutes and regulations. Nothing in the rules and procedures set forth under divisions (A) through (C) may be construed to contravene any contrary rule or procedure for the administration or disposition of utility deposits as prescribed by statute or rules of the Public Service Commission of Indiana, State Board of Accounts or any other superior authority having jurisdiction as now or hereafter in effect, and any of the above provisions shall be subordinate to and void to the extent in conflict therewith.
(`86 Code, § 2-6-7)
(Ord. 86-C1, passed 7-15-86)