(A) A cash reserve fund is created for the Water Utility and carried on the records of the Utility, to which fund contributions or transfers of surplus earnings of the Utility may be made by resolution. Any authorized transfer of surplus earnings shall be made no later than the tenth working day of the month following authorization.
(B) 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.
(C) No transfer to the cash reserve fund shall be made unless or until a depreciation or replacement fund has been established for the Utility to which shall accrue at least 21.5% of the operating revenues each month.
(Ord. 4-1991, passed 12-30-1991)