A. Application. There is hereby established a Capital Reserve Account in the Sewer and Water Fund. It is the city's intent in establishing this fund that it be used for capital expenditures, to purchase new equipment, replace existing equipment, or make major repairs to existing equipment or facilities so the sewer and water utilities have adequate capital facilities and equipment to provide the public services it delivers. In addition, the fund can be used for the public safety and welfare of residents of the city if emergency needs exist.
B. Jurisdiction. Management of the Capital Reserve Account shall be by and through the city council.
C. Disbursements. The city council shall be the only authority authorized to make disbursements of funds from the Capital Reserve Account. Prior to making a disbursement, the city council shall make a finding that use of these funds is necessary to make capital expenditures, purchase new equipment, replace or make major repairs to existing equipment in sewer and water utilities. Any such disbursement shall be authorized only by an ordinance appropriating funds for the particular need determined by the city council.
D. Contributions. Contributions to the Capital Reserve Account may occur from each of the following sources:
1. A percentage of the revenues the city receives from providing sewer and water utility services shall be deposited in the account on a quarterly basis. The mayor will confer with the city council on the percentage of the above revenues that shall be deposited in the account.
2. The city council may, from time to time, make contributions to the account as it deems appropriate by city council ordinance appropriating the same.
E. Investment of the Fund. The city council shall have the full responsibility and authority for the investment of funds in the account. The city council shall, by city council resolution or action where a quorum is duly constituted, establish and direct the investment portfolio of all funds appropriated to the account.
(Ord. 88-12 § 4, 1987; Ord. 94-1 § 5, 1994; Ord. 07-06 § 3, 2007)