(A) A Water Works Depreciation Fund was created by the Council. The purpose of this Fund is for the water utility to provide replacement of major equipment after the useful life of the equipment has been met.
(B) Excess revenue to be placed in this Fund shall be from the revenue generated by the operation of the water utility. Out of such excess revenues there shall be deposited in the Fund, on or before the first day of each calendar month, not less than the sum of $2,000 until such time as the Fund shall contain the sum of $100,000 (the Fund Limit). This Fund contribution may be modified or changed by resolution of the City Council upon recommendation of the Board.
(C) After accumulation of the Fund limit, no further deposits need be made therein except to the extent necessary to maintain the Fund Limit of $100,000.
(D) After the Fund reaches $100,000 and expenditures are made from the Fund, deposits shall be made at the rate of not less than $2,000 per month from excess revenues until the Fund Limit shall have again been attained.
(Ord. 1627, passed 7-5-16)