(A) An account is established for the deposit of monies for the purpose of purchasing equipment, capital improvements to facilities, land acquisition, granting matching funds, major repairs to equipment, making payments on lease/purchase debt agreements or similar debt instruments and other qualifying capital improvement expenditures for the City of Madison Sewer Utilities as listed in division (C) below. The monies will come from surplus operational funds of the Sewer Utility accounts, donations or from any other lawful source.
(B) The account shall be named the Sewer Utilities Capital Improvement Fund. All funds contained in the account shall be expended only for financing expenses directly related to major repairs or replacement of capitalized structures or equipment, matching funds for grants, land acquisition or debt service for capitalized items.
(C) Expenditures from the fund that may be considered are land acquisition, structures, new or used equipment subject to being capitalized, and may include rolling stock vehicles and equipment, lifts, pumps, sewage treatment transmission lines and equipment, IT equipment, including communication equipment and computer hardware and software, engineering professional services, and any repair of existing equipment or structures exceeding $10,000 in cost.
(D) The fund will be primarily funded by surplus funds acquired from the operation of the Sewer Utility. The Superintendent of Utilities and the Mayor shall review the financial condition of the utility to determine the initial lump sum amount of funds to be deposited to the fund, as well as a monthly transfer of funds from the Sewer Operating Fund. The Superintendent of Utilities will recommend the required fund transfer to the Board of Public Works and Safety, for both the initial lump sum transfer and the monthly transfer amount, with the approval of the Mayor, and these allowances of funds to be transferred will be reviewed at least annually. If the funds available in the Sewer Operating Fund become insufficient to safely meet its obligations, the Superintendent of Utilities may also request that surplus funds in the Capital Improvement Fund be transferred to the Sewer Utility Operations Fund, with the approval of the Board of Public Works and Safety.
(E) The express and written approval of the Board of Works and Safety shall be obtained prior to the expenditure or transfer of funds from the account.
(F) The account shall be nonreverting and exist perpetually unless terminated by a subsequent ordinance enacted by the Common Council.
(G) If the account is terminated by a subsequent ordinance enacted by the Common Council, the remaining balance of the terminated account shall revert to the operating fund of the Sewer Utilities.
(Ord. 2016-5, passed 4-19-16)