(A) The income and revenues of the waterworks, together with the income and revenues of all extensions, additions and improvements thereto and replacements thereof, shall be set aside into a separate and special fund to be used and applied in the maintenance and operation thereof, in establishing a Depreciation Account and in payment of the now- outstanding revenue bonds and the revenue bonds authorized by subsequent ordinances. All ordinances authorizing revenue bonds are adopted by reference in this code and are a part of this code as though they were fully set out herein.
(B) The following funds and accounts are hereby established.
(1) Operation and Maintenance Account. Forty-two and two-tenths percent of the gross revenues of the waterworks shall be set aside and paid into the Operation and Maintenance Account and be used to pay the necessary costs of reasonable and proper operation and maintenance, and shall be applied exclusively to that purpose until a surplus shall have been accumulated in the Operation and Maintenance Account, which surplus shall be equal to the costs of maintaining and operating the waterworks during the calender, operating or fiscal year then next ensuing. Any excess over such surplus may be transferred by the Common Council to either the Depreciation Account or the Bond and Interest Redemption Account.
(2) Depreciation Account. Four and five-tenths percent of the gross revenues of the waterworks shall be paid into the Depreciation Account and shall be expended in making good depreciation in the waterworks or in new construction, extensions or additions to the property of the waterworks. Any accumulation in the Depreciation Account not required for immediate use may be invested in direct obligations of the U.S. Government, and if so invested, then the income from said investment shall accrue to the Depreciation Account. The account shall not be used for any purpose other than as herein provided.
(3) Bond and Interest Redemption Account.
(a) Fifty-three and three-tenths percent of the gross revenues of the waterworks shall, as the revenues are received, be set apart and paid into a special account identified as the Bond and Interest Redemption Account. The funds in said account identified as the bond and interest bonds, which by their terms are payable from the revenues of the works and in the following order:
1. Paying the interest on and principal of the waterworks’s refunding and improvement revenue bonds of 1955 in accordance with the terms thereof;
2. Paying the interest on and principal of the bonds issued pursuant to the provisions of this chapter in accordance with the terms hereof and any bonds hereafter issued ranking on parity therewith; and
3. Paying the interest on and principal of any other bonds payable from the revenues of the waterworks to the extent required for those purposes.
(b) If, and when, a surplus shall be created in the Bond and Interest Redemption Account which shall be of the interest on the principal of the bonds, plus 10% which are payable during the then- current calender, operating or fiscal year then together with the amount of interest on and principal of the bonds will become due and payable during the calender, operating or fiscal year then next ensuing, then the Common Council may transfer any excess over the surplus to either the Operation and Maintenance Account or to the Depreciation Account.
(c) Any excess over the required surplus may also be used in the purchase or redemption of outstanding bonds prior to maturity at a price not exceeding the then-applicable redemption price and on such terms as are provided in the bonds.
(d) No further payments need to be made into the Bond and Interest Redemption Account when the amount contained therein equals or exceeds the amount of the principal of the bonds then outstanding and interest thereon to the dates of maturity thereof.
(C) All of the funds of the several accounts shall be deposited in lawful depositories of the city and shall either be continuously held and secured or invested as provided by the laws of the state related to the depositing, securing, holding and investing of public funds. In no event shall any of the revenues of the waterworks be transferred or used for any purpose not authorized by this chapter so long as any of the bonds issued pursuant to the provisions of this chapter shall be outstanding.
(Prior Code, § 13.04.030) (Ord. 882, passed 4-1-1974; Ord. 1005, passed 11-10-1980)