(A) There is hereby created and established the Wastewater Cash Reserve Fund, for the purpose of depositing the surplus earnings of the wastewater utility.
(B) “SURPLUS EARNINGS” are defined as those cash earnings remaining after provisions have been made to take care of current obligations, including:
(1) Operating and maintenance expense;
(2) Depreciation or replacement fund;
(3) Bond and interest sinking fund;
(4) Retirement fund; or
(5) Any other priority fund requirements fixed by law.
(C) The Wastewater Cash Reserve Fund shall be funded with an amount equal to at least three months operating expense of the wastewater utility excluding sums needed for principal and interest payments on bonds of the utility.
(D) The cash reserve account can only be used in the case of an emergency to operate the utility or purchase needed equipment for which no other funds are available. Said funds shall be replenished by said utility as is possible.
(E) All expenditures from the fund shall be approved by the Board after proper appropriation.
(F) The City Council may, with approval of the Board, transfer surplus earnings of either of said utilities to the General Fund from said cash reserve fund as authorized by IC 8-1.5-3-11.
(G) Any interest earned by either of these cash reserve funds may be transferred by the Clerk-Treasurer to the operating fund of either of the city’s utilities.
(H) Cash reserve funds may be used to make loans to any utility owned by the city for periods not to exceed five years and at any interest rate. If one utility borrows money from another, repayment of said loan shall be within five years. The term of said loan shall not exceed five years from the date of said loan. The interest shall be returned to the cash reserve fund of the utility loaning the money.
(Ord. 1639, passed 12-19-16)