(A) There is hereby created a Water Cash Reserve Fund for the purpose of depositing excess revenues of the Utility. The fund shall be maintained at an amount equal to three (3) months of operating expenses of the utility excluding sums needed for principal and interest payments on bonds of the utility.
(B) The purpose of the cash reserve fund is for emergency situations when monthly revenues are not adequate to meet the recurring operating expenses of the Utility, including the purchase equipment necessary for the effective and efficient operation and maintenance of the Utility. The funds in the cash reserve fund shall be replenished by the Utility as excess revenues are generated to maintain the three (3) months of operating expenses.
(C) Expenditures from the fund shall be approved by the Board after proper appropriation.
(D) The Council may, with approval of the Board, transfer Water utility funds to the General Fund from the Water cash reserve fund as authorized by IC 8-1.5-3-11.
(E) Any interest earned by the cash reserve fund may be transferred by the Clerk-Treasurer to the operating fund of any of the city’s utilities, upon approval of the Council.
(F) Cash reserve funds may also be used to make loans to any other City utility for periods not to exceed five (5) years and at an interest rate agreed upon approval by the Council. If one utility borrows money from another utility, repayment of the loan shall be within five (5) years and the interest shall be deposited to the cash reserve fund.
(Ord. 1627, passed 7-5-16)