(a) The municipally owned and operated gas system and water system are public utilities and shall be operated in a businesslike manner. Said utilities shall not be operated for the benefit of other municipal functions, and shall not be used directly or indirectly as a general revenue producing agency for the City, but it may pay to the City an amount in lieu of such taxes as are normally placed upon private business enterprises.
(b) The gas utility shall pay to the City general corporate fund a fee in lieu of taxes. Such fee shall be 10.25 percent of the gross operating revenues of the utility. Such fee shall be paid monthly when the gross operating revenues for the previous month have been calculated. The fee shall not be due or payable when the fund balance of the gas fund is less than or equal to $750,000.00. "Gross operating revenues" is defined as the retail sales of the fund and does not include penalties, service fees, tap fees, or take or pay charges. If the City's general corporate fund has no loan to the gas fund outstanding, then said rate shall be reduced to 5.00 percent.
(c) The water utility shall pay to the City general corporate fund a fee in lieu of taxes. Such fee shall be 10.25 percent of the gross operating revenues of the utility. Such fee shall be paid monthly when the gross operating revenues for the previous month have been calculated. The fee shall not be due or payable when the fund balance of the water fund is less than or equal to $750,000.00. "Gross operating revenues" is defined as the retail sales of the fund and does not include penalties, service fees, tap fees, or take or pay charges. If the City's general corporate fund has no loan to the water fund outstanding, then said rate shall be reduced to 5.00 percent.
(d) As long as the City's general corporate fund has a loan to another City fund outstanding, then the use of 60.00 percent of the fee in lieu of taxes received pursuant to this section shall be restricted and limited to repayment of said outstanding loan or loans.
(Ord. 2016-9-2. Passed 9-14-16.)