A. Segregation Of Funds: All fees and charges received and collected under authority of this chapter shall be deposited and credited to a special fund to be designated as the drainage system fund.
B. Accounting Of Receipts And Expenditures: The accounts of the fund created by this section shall show all receipts and expenditures for the maintenance, construction, operation, upkeep and repair of the city's drainage system, including the payment of any system bonds issued by the city, which, from time to time, may be outstanding.
C. Expenditure On System Expenses Only: All funds generated by this chapter will only be expended on the operation, maintenance and other expenses, including regulatory compliance, of the drainage system. No general street maintenance such as filling potholes, repaving, striping, winter sanding or other general fund expenditures may be charged to the drainage system fund. However, repair and replacement of curbs and gutters and removal of pollutants from the drainage system via sweeping or other methods is authorized in order to maintain the integrity of the drainage system and comply with applicable regulations. The drainage system administrator and the finance director are charged with adopting additional policies and guidelines to ensure that drainage system funds are only spent on valid drainage system expenses.
D. Availability Of Deposited Funds: As provided by law, when budgeted and appropriated, the funds and credits to the account of the drainage system utility fund shall be available for the payment of the requirements for the maintenance, operation, repairs, and upkeep of the system, compliance with the permit, and to the extent legally available for payment into a sinking fund established for the payment of the principal of and interest of any general obligation system bonds which shall from time to time be outstanding.
E. Independence From The General Fund: The drainage system utility shall operate independently of the city's general fund and shall have the same relationship to the city as other city utilities. Upon creation of the utility, the city's drainage facilities and assets, other than streets, shall be transferred to the utility in accordance with governmental accounting standards board (GASB) financial reporting principles. (Ord. 3455, 2012)