(A) Withdrawals from the Fund require the authorization of the City Council. At the time of withdrawal, a plan to replenish the Fund over a reasonable time frame shall be adopted by the City Council. The plan may or may not include a rate increase, depending on the circumstances.
(B) Withdrawals from the Fund should be restricted to:
(1) Make up for a severe shortfall in funds where projected revenues are not met, typically because of unusually wet weather or other unexpected negative influence on revenue stream;
(2) Pay for catastrophic repair events of such magnitude that the cost of such would initiate an unplanned rate increase or a greater than planned rate increase (i.e. increases that would not have been needed if such event had not occurred);
(3) Smooth a sharp rate increase necessitated by sudden increase in an uncontrollable, ongoing expense; and/or
(4) To pay for capital improvement projects as necessary. At the time of any such withdrawal, a plan to raise rates over a reasonable time period to a level sufficient to cover the ongoing cost of the utility should be presented to the Council and adopted.
(C) Withdrawal from the Fund should not be allowed for the following reasons:
(1) To make any expenditure not clearly and directly for the operation, maintenance, or repair of the water or wastewater system, or to stabilize the rate structures thereof;
(2) To pay for expense made necessary as a result of growth, expansion, or enhancement of existing services or inflation; or
(3) For the addition of permanent personnel or equipment.
(Ord. 8-2002-53, passed 8-13-02)