(A) A Cash Reserve Fund shall be created by ordinance and carried on the records of the utility or utilities by providing for monthly contributions or transfers to the Cash Reserve Fund of surplus earnings of the utility or utilities.
(B) Surplus earnings are those cash earnings remaining after provision has been made to take care of current obligations, including:
(1) Operating expense;
(2) Depreciation or replacement fund;
(3) Bond and interest sinking fund;
(4) Retirement fund; or
(5) Any other priority fund requirements fixed by law.
(C) (1) After 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.
(2) 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, and transfers may not be made from any utility funds to the General Fund except from the Cash Reserve Fund.
(D) (1) If, at any time, after the 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 the additional appropriations, the transfer to be limited to the accretions to the Cash Reserve Fund since the preceding June 30.
(2) Transfers to the Water Reserve Fund shall be limited pursuant to any bond ordinance, resolution, indenture, contract, or similar instrument binding upon the utility.
(Prior Code, § 2-75) (Ord. 1996-6, passed 5-21-1996)