(a) A separate account shall be established for the explicit purpose of providing water resources for the residents of Hancock and shall be called the Water Utility Fund. A separate account shall also be established for providing a sewage system for the residents of Hancock and shall be called the Sewage Utility Fund. When there is a substantial surplus in either fund, after providing for the annual payment of installments on bonds, interest, sinking fund, maintenance expenses of the respective departments, and a prudent amount for emergency, the City Manager shall notify the City Council. The City Council shall designate by resolution what shall be done with the surplus funds. Under no circumstances shall surplus funds in the Water Utility Fund or the Sewage Utility Fund be transferred to any other fund within the City. These funds shall remain in the Water Utility Fund or the Sewage Utility Fund to pre-pay principal on outstanding bonds, allow a reduction of present water or sewage rates as provided under Section 12.5, or be utilized as deemed necessary by the respective services. Surplus funds may be invested in investments that are either insured by the Federal Government or its agencies, or are direct obligations of the Federal Government. The income derived from such investments shall remain within the Fund which provided the surplus funds and shall be used only within that Fund.
(b) Separate accounts shall be kept for each public utility owned or operated by the City, distinct from other City accounts, and in such manner as to show the true and complete financial result of such City ownership or operation, or both, including all assets, liabilities, revenues, and expenses. These accounts shall show the actual cost to the City of each such public utility, the cost of all extensions, additions, and improvements, all expenses of maintenance, the amounts set aside for sinking fund purposes, and all operating expenses. They shall show as nearly as possible, the value of any service furnished to or rendered by any such public utility by or to any other City Department. They shall also show a proper allowance, for depreciation and insurance. The City Council shall annually cause to be made a report showing the financial results of such City ownership or operation, or both, which report shall give for each utility, the information specified in this section, and such further information as the City Council shall deem necessary.