(A) The Clerk-Treasurer of the town shall be the custodian of all funds belonging to and/or associated with the Town Municipal Waste Disposal System and shall be deposited as follows in division (B) below.
(B) All gross income and revenue shall be set aside and deposited, expended, and used only in the manner and order as follows.
(1) Sewer Operation and Maintenance Fund. All funds will be deposited to the Operation and Maintenance Fund. From this Fund, transfers will be made to several special fund accounts. The balance is to be used to pay the necessary cost of the reasonable and proper operation and maintenance of the Sewage Treatment Plant, including any taxes required to be paid.
(2) Sewer Sinking Fund. A Sewer Sinking Fund is hereby created to receive from the Sewer Operation and Maintenance Fund a monthly transfer in the sum sufficient to pay the outstanding loan indebtedness owed by the Town Municipal Sewage Utility to The Farmers State Bank of the town, (currently in the sum of $1,811.30 per month) and to pay said sum to said bank as required by the promissory note dated November 24, 1991 evidencing said indebtedness.
(3) Sewer Depreciation Fund. There is hereby created a Sewer Depreciation Fund into which the sum of $120 per month shall be deposited from the Sewer Operation and Maintenance Fund to be used for the purpose of paying the costs of repairing or replacing any damage to the sewage treatment system, and for making extensions or improvement to the system.
(4) Debt Service Reserve Fund. A Debt Service Reserve Fund is hereby created, into which the sum of $21,735 shall be deposited from the Sewer Sinking Fund, which sum equals one year’s payment of the above referred to outstanding loan indebtedness owed by the Town Municipal Sewage Utility to The Farmers State Bank of the town. Said amount shall remain in said Fund until said outstanding loan indebtedness is paid in full, and shall be used only for the payment of said loan indebtedness in the event the above Sewer Sinking Fund is inadequate at any time for any such payment.
(C) (1) The town shall by ordinance establish, maintain, and collect reasonable, just, and equitable rates and charges for facilities and services afforded and rendered by said sewage utility, which shall, to the extent permitted by law, produce sufficient revenues at all times to pay all the legal and other necessary expenses incident to the operation of such utility; to include maintenance costs, operating charges, upkeep, repairs, interest charges on bonds, or other obligations; to provide the Sewer Sinking Fund for the liquidation of any indebtedness; to provide adequate funds to be used as working capital, as well as funds for making extensions, additions, and replacements; and also, for the payment of any taxes that may be assessed against such utility, it being the intent and purpose hereof that such charges shall produce an income sufficient to maintain such utility property in a sound physical and financial condition to render adequate and efficient service.
(2) The town shall pay like charges for any and all services rendered by said utility to the town, and all such payments shall be deemed to be revenues of the utility. Such rates or charges shall, if necessary, be changed and readjusted from time to time so that the revenues therefrom shall always be sufficient to meet the expenses of operation and maintenance, and said requirements of the Sewer Sinking Fund.
(D) This section shall be in full force and effect from and after its passage and adoption by the Town Council.
(Ord. 6A, 1991, passed 12-30-1991)