(A) Pursuant to the Acts of the General Assembly, a fund known as the Sewage Works Bond and Redemption Fund is hereby established, into which there shall be set aside from revenues such an amount as will be sufficient to pay the interest and principal of bonds issued on account of said sewage works. There is also hereby established a Sewage Works Operating Fund for the construction, repair, operation and maintenance of the sewage treatment works.
(B) Payments into the Sewage Works Bond and Redemption Fund shall be made as provided in the schedule of bond payments under any outstanding bond issued and as the Council from time to time determines.
(C) The office of the Clerk-Treasurer is responsible for maintaining all records of receipts and disbursements for the sewage works, including all transactions involving the Sewage Works Bond and Redemption Fund and any other funds which may from time to time be established.
(D) The city shall account for all industrial cost recovery payments in the following manner.
(1) All revenues derived from the industrial cost recovery rates and charges shall be segregated and kept in a special fund separate and apart from all other funds of the city. The special fund shall be designated the Sewage Works Industrial Cost Recovery Fund, and payment of said amounts into said Fund shall be deemed a reasonable expense of operation of the sewage works for the purpose of computing net operating revenue.
(2) Within 45 days following the end of the first calendar year after the completion of construction of the sewage facilities and annually thereafter, the city shall return 50% of the amounts recovered through the industrial cost recovery charges, together with any interest earned thereon, to the U.S. Treasury. Pending use, the city shall invest the retained amounts for reconstruction and expansion in:
(a) Obligations of the U.S. Government;
(b) Obligations guaranteed as to principal and interest by the U.S. Government or any agency thereof; or
(c) Shall deposit such amounts in accounts fully collateralized by obligations of the U.S. Government or by obligations fully guaranteed as to principal and interest by the U.S. Government or any agency thereof.
(3) Eighty percent of the funds retained by the city in the Sewage Works Industrial Cost Recovery Fund or the authorized investments and the interest earned thereon shall be expended only for the purpose of eligible costs of expansion or reconstruction of the treatment works. The city shall obtain the written approval of the Regional Administrator of the U.S. EPA prior to commitment of the retained 20% of the funds retained by the city, which may be utilized for any authorized use associated with the sewage works.
(Ord. 414, passed 8-1-1938; Res. passed 1-4-1943; Ord. 2020-02, passed 6-1-2020)