Section 12.3 RATES
   a.   The Council shall have the power to fix, from time to time, such just and reasonable rates and other charges as may be deemed advisable for supplying the inhabitants of the City and others with such public utility services as the City may provide. There shall be no discrimination in such rates within any classification of users, nor shall free service be permitted. Higher rates may be charged for service outside the corporate limits of the City.
   b.   The rates and charges of any municipal utility for the furnishing of services shall be no higher than necessary to cover the costs of such utility, including depreciation, capital improvements, and the creating and maintaining of an emergency fund.
   c.   Transactions pertaining to the ownership and operation by the City of each public utility shall be recorded in a separate group of accounts under an appropriate fund caption, which accounts shall be classified in accordance with generally accepted utility accounting practice. Charges for all service furnished to or rendered by, other City departments or agencies shall be recorded. An annual report shall be prepared to show fairly the financial position of each utility and the results of its operation, which report shall be available at the office of the City Clerk.
   d.   The City Council shall create emergency funds for the Electric, Sewage and Water utilities to meet contingencies. Each fund shall be not less than Seventy Five Thousand Dollars ($75,000.00) and each fund is to be so administered as to reach that intended minimum level in a period of five (5) years. Any withdrawal for emergency use must be replaced within five (5) years.