(A) Establishment. There is established a Cash Reserve Fund within and on the records of the City Water Utility, into which fund may be transferred or contributed surplus earnings of that utility from and after June 26, 1989.
(B) Definition. SURPLUS EARNINGS are defined as those cash earnings remaining after provision has been made to take care of current obligations, including operating expenses, depreciation or replacement fund, bond and interest sinking fund, retirement fund, and any other priority fund requirements fixed by law.
(C) Deposit of funds. Surplus earnings from the Water Utility may be deposited in the Cash Reserve Fund by resolution of the Common Council at a time or times as is determined to be proper. Provided, however, that all transfers or contributions from the water utility to the Cash Reserve Fund shall be made after compliance with City Ordinance No. 269, adopted November 18, 1980, and all amendments and supplements thereto.
(D) Use of funds. The Cash Reserve Fund may be used to make loans to other utilities owned by the city, for periods not to exceed five years, at any interest rate. and interest, if any, shall be returned to the Cash Reserve Fund. All loans shall be evidenced by a written promissory note setting out the terms and conditions of the loan. It is the intent of this ordinance to adopt the provisions of I.C. 8-1.5-3-11(F).
(Ord. 360, passed 7-10-89)