(A) A Water Cash Reserve Fund for the Water Utility of the town is hereby established.
(B) Periodically, surplus earnings of the Water Utility may be transferred to the Water Cash Reserve Fund of the Water Utility so long as the terms and conditions of any bond ordinance, resolution, indenture, contract under IC 8-1-2.2 or similar instrument are applied. SURPLUS EARNINGS are those cash earnings remaining after provision has been made to provide for current obligations, including:
(1) Operating expense;
(2) Depreciation or replacement fund;
(3) Bond and interest sinking fund;
(4) Retirement fund; or
(5) Any other priority fund requirements fixed by law.
(C) If at any time after approval of the budget an emergency should arise for further appropriations from the town General Fund, the Town Council may, by further ordinance, transfer additional money from the Water Cash Reserve Fund, herein created, to the General Fund to provide for additional appropriations.
(D) The Town Council may by further ordinance make loans from the Water Cash Reserve Fund to another utility owned by the town, for any appropriate period, at any interest rate. The repayment of the loan and any interest shall be returned to the Water Cash Reserve Fund.
(Ord. 13-002, passed 7-1-13)