(A) Cash Reserve Fund. There is established as a part of the General Fund the Cash Reserve Fund. The Cash Reserve Fund shall be funded by transferring all interest amounts of the city utilities accrued on investments and checking accounts. However, the amounts of money may be transferred only if any obligations binding on the city utilities are not imperiled by the transfers.
(B) Utility Cash Reserve Fund.
(1) Separate cash reserve funds pursuant to I.C. 8-1.5-3-11(b) shall be established and maintained for the municipal electric utility, the municipal water utility, and the municipal sewer utility. The governing board of each utility shall determine the amount of monthly contributions or transfers, if any, to the respective Cash Reserve Fund from the surplus earnings of the municipal electric utility, the municipal water utility or the municipal sewer utility, as appropriate, and subject to the provisions of I.C. 8-1.5-3-11(c).
(2) SURPLUS EARNINGS are defined as those cash earnings remaining after provisions have been made to take care of current obligations, including those for operating expenses, depreciation or replacement funds, sinking fund, bond and interest retirement funds, or any other priority fund requirements fixed by ordinance or by law.
(3) There shall be transferred to the Electric Utility Cash Reserve Fund surplus earnings of the utility. The transfers shall be made as voted on by the Utilities Board, but transfers shall be made on no more than a monthly basis.
(C) Transfer of Cash Reserve Fund balance to General Fund.
(1) The Board may include in the annual General Fund budget, as a revenue in lieu of taxes, an amount equal to, but not in excess of, the actual balance in the Utility Cash Reserve Fund as of July 31 of the current year, and this Utility Cash Reserve Fund balance available shall be transferred to the General Fund only during the calendar year for which the budget is adopted, and no transfer shall be made from any utility funds to the General Fund other than from the Utility Cash Reserve Fund.
(2) If at any time after the final approval of the budget an emergency shall arise for further appropriations, in the manner now provided by law from the General Fund of the city, the Board may, by ordinance, transfer additional funds from the Utility Cash Reserve Fund to the General Fund to provide for these additional appropriations, and this transfer shall be limited to the accretion to the Utility Cash Reserve Fund since the preceding July 31.
(Ord. 1-1985, passed 2-12-1985; Ord. 1-1987, passed - -1987; Ord. 6-1995, passed 8-15-1995)