§ 35.09  CASH RESERVE FUND.
   (A)   Pursuant to I.C. 8-1.5-3-1, the Common Council, with the approval of the Board of Works and Safety, may transfer surplus earnings of the utilities to the General Fund.
      (1)   Money can be transferred only if terms and conditions of any bond ordinance, resolution, indenture, contract or similar instrument binding on the utility have been satisfied.
      (2)   SURPLUS EARNINGS is defined to mean those cash earnings remaining after provision has been made to take care of current obligations such as:
         (a)   Operating expense;
         (b)   Depreciation or replacement fund;
         (c)   Bond and interest sinking fund;
         (d)   Retirement fund; or
         (e)   Any other priority fund requirements fixed by law.
   (B)   Upon creation of the Cash Reserve Fund, the legislative body may include in the municipal General Fund budget, as revenue in lieu of taxes, an amount equal to the actual balance in the Cash Reserve Fund as of June 30 of the current year.
      (1)   However, the available Cash Reserve Fund balance may be transferred to the municipal General Fund only during the calendar year for which the budget was adopted.
      (2)   Transfers may not be made from any utility funds to the General Fund except from the Cash Reserve Fund.
   (C)   If at any time after final approval of the budget an emergency should arise for further appropriations from the General Fund, the legislative body, may, by ordinance, transfer additional money from the Cash Reserve Fund to the General Fund to provide for additional appropriations, the transfer to be limited to the accretions to the Cash Reserve Fund since the preceding June 30.
   (D)   The Cash Reserve Fund may be used to make loans to another utility owned by the same municipality, for periods not to exceed five years, at any interest rate. The repayment of the loan and interest shall be returned to the Cash Reserve Fund.
(Ord. 8-1995, passed 10-9-1995)