(A) The user charge system shall generate adequate annual revenues to pay the costs of annual operation and maintenance including replacement and cost associated with debt retirement of bonded capital associated with financing the water system which the city may by ordinance designate to be paid by the user charge system. That portion of the total user charge which is designated for operation and maintenance including replacement of the water system shall be established by this chapter.
(B) The portion of the total user charge collected that is designated for the operation and maintenance, including replacement purposes, as established in § 51.58, shall be deposited in a separate non-lapsing fund known as the Operation, Maintenance, and Replacement Fund and will be kept in two primary accounts as follows:
(1) The Operation and Maintenance Account shall be an account designated for the specific purpose of defraying operation and maintenance costs (excluding replacement) of the water system. Deposits in the Operation and Maintenance Account shall be made from operation and maintenance revenue; and
(2) The Replacement Account shall be an account designated for the specific purpose of ensuring replacement needs over the useful life of the water system. Deposits in the Replacement Account shall be made monthly from the operation and maintenance revenue in an amount adequate to cover the known and/or reasonably expected expenses in accordance with the schedule established in Exhibit B and Exhibit C attached to Ord. 12-001.
(C) Fiscal year-end balances in the Operation and Maintenance Account and the Replacement Account shall be carried over to the same accounts in each subsequent fiscal year, and shall be used for no other purposes than those designated for these accounts. Monies which have been transferred from other sources to meet temporary shortages in the Operation, Maintenance, and Replacement Fund shall be returned to their respective accounts upon appropriate adjustment of the user charge rates for operation, maintenance, and replacement. The user charge rate(s) shall be adjusted such that the transferred monies will be returned to their respective accounts within the fiscal year following the fiscal year in which the monies were borrowed.
(Ord. 12-001, passed 2-28-2012)