There is hereby created a special fund to be known and designated as the water fund. All service charges and fees and all connection fees received and collected pursuant to the provisions of this chapter shall be deposited to the credit of the water fund and such monies are hereby set aside and perpetually appropriated for, and shall be expended only for, the payment of:
A. Costs and expenses of maintenance, operation, replacement and repair of the public water system;
B. Constructing, improving and extending the said public water system, as the term "water system" is defined in Idaho Code section 50-1029; and
C. The principal and interest on revenue bonds duly issued and sold in accordance with ordinances of the city and statutes of the state.
The city clerk shall bill and receive all service charges and fees and all connection fees in the time and manner required by the city council or by ordinance. (1984 Code § 7-3B-8)