(A) Fiscal year. The fiscal year of the system shall begin July 1 and shall end on June 30 in each year.
(B) Records and accounts. The city shall maintain the Water Supply and Sewage Disposal Fund as an enterprise fund within the books and accounts of the city. The Water Supply and Sewage Disposal Fund shall be used to account for the operation of the water distribution, water treatment, sewage disposal and sewage treatment systems, the construction and acquisition of additions and improvements to those systems, and contributions toward the payment of interest and principal on general obligation bonds issued to help finance the construction projects undertaken by the system. The city shall cause an annual audit of such books and records and accounts of the preceding operating year to be made by a recognized independent certified public accountant and will make such audit available to the public upon proper request.
(C) Establishment and maintenance of separate funds and accounts within the Water Supply and Sewage Disposal Fund. The city has established and shall maintain and use the following funds and accounts.
(1) Receiving fund. All revenues of the system shall be credited initially to the Receiving Fund, and shall be transferred or debited from the Receiving Fund periodically in the manner and at the times and in the order of priority described in this article.
(2) Operation and Maintenance Fund. Out of the revenues credited to the Receiving Fund, at least monthly the City Manager shall first set aside in, or credit to, the Operation and Maintenance Fund an amount sufficient to provide for the payment of the next month's expenses of administration and operation of the system and such current expenses for the maintenance of the system as may be necessary to preserve the system in good repair and working order.
(3) Bond and Interest Redemption Fund; Bond Reserve Account. Out of the revenues remaining in the Operation and Maintenance Fund, the City Manager shall set aside each month an amount equal to the amounts specified in each bond ordinance applicable to outstanding bonds secured or payable from revenues of the system. In addition, if required by any bond ordinance, the City Manager shall set aside the amounts required to establish and maintain the Bond Reserve Account. Money in the Bond and Interest Redemption Fund shall be used exclusively for payment of the principal of redemption premiums, if any, and interest on the bonds as they come due. Money in the Bond Reserve Account shall be used solely for the payment of the principal of redemption premiums, if any, and interest on the bonds as to which there would otherwise be a default. If at any time it is necessary to use money credited to the Bond Reserve Account for such payment, then the City Manager shall replace the money used from the net revenues next received that are not needed for current principal and interest requirements, until the amount on deposit equals the reserve amount.
(4) Replacement and Improvement Fund. Out of the revenues and moneys of the system remaining in the Receiving Fund at the end of each month, after provision has been made for credits or deposits to the Operation and Maintenance Fund and the Bond and Interest Redemption Fund, the City Manager may deposit such additional funds into the Replacement and Improvement Fund such amounts as the City Manager shall determine advisable, not to exceed the amounts budgeted for such purpose. The money in the Replacement and Improvement Fund shall be used solely for the purpose of making repairs, replacements, improvements, or enlargements of the system, including any buildings or structures related to the system. If at any time it shall be necessary to use the money in the Replacement Fund for the purpose for which the Replacement Fund was established, the City Manager shall replace those amounts from any money in the Receiving Fund which is not required to be used for the Operation and Maintenance Fund or the Bond and Interest Redemption Fund, including the Bond Reserve Account.
(5) General Obligation Debt Fund. Out of the remaining revenues in the Receiving Fund each month, the City Manager shall credit to the General Obligation Debt Fund such sums as shall be necessary to pay debt service on outstanding general obligation bonds or contractual obligations of the city issued or incurred for system purposes.
(D) Surplus revenues. All money remaining in the Receiving Fund after satisfying all of the requirements of this section may, at the option of the City Council, be used for any purpose directly relating to the system, including credit or transfer to the Replacement Fund or the general obligation debt, or for the purchase of bonds on the open market at not more than the fair market value thereof, or for the redemption of bonds prior to maturity.
(E) Priority of funds. If the money in the Receiving Fund is insufficient to provide for the current requirements of the Operation and Maintenance Fund or the Redemption Fund, any money or securities in other funds of the system, except the proceeds of the sale of bonds, shall be credited or transferred, first, to the Operation and Maintenance Fund, and second to the Bond and Interest Redemption Fund.
(F) Depository. Money credited to the several funds and accounts of the system, except money in the Redemption Fund (including the Bond Reserve Account) may be kept in 1 or more bank accounts at a bank or banks designated by resolution of the City Council, and if kept in 1 bank account, the money shall be allocated on the books and records of the city in the manner and at the times provided in this section.
(G) Deficiencies in cash accounts. If the money in the Operation and Maintenance Fund is insufficient to provide the current requirements of the operation and maintenance of the system, the city may transfer any money or securities from any other fund of the system to the extent of the deficiency.
(H) Insurance. The city shall maintain and carry insurance on all physical properties of the system of a kind and in the amounts normally carried by public utility companies and municipalities engaged in the operation of water supply and sanitary sewage disposal systems. All money received from losses under any such insurance policy shall be applied solely to the replacement and restoration of the property damaged or destroyed.
(I) Proceeds of system equity charge. The city shall deposit the proceeds of all system equity charges into the Replacement and Improvement Fund.
(1993 Code, § 68-4) (Ord. passed 1-22-2001; Ord. 2014-01, passed 1-27-2014)