(A) Fiscal year. The fiscal year of the system shall commence on January 1 and end on December 31 in each year.
(B) Records and accounts. The city shall keep and maintain proper books and records and accounts separate from all other records and accounts of the city in which shall be made full and correct entries of all transactions relating to the system. The city shall cause an annual audit of such books and records and accounts of the preceding operating year to be made by a recognized independent certified public accountant and will supply such audit to authorized public officials upon proper request. The city shall use the results of the audit to make adjustments in funds, with deficiencies or surpluses. Any adjustments necessary for operation and maintenance costs shall be passed on to users of the systems
(C) Establishment of funds.
(1) Receiving funds. The revenues of the system shall be set aside as collected and deposited in a separate depository account at a bank qualified to do business in the state and designated by resolution of the Commission. Said account shall be designated as the "Receiving Fund" and the revenues so deposited shall be transferred from the receiving fund periodically in the manner and at the times hereinafter specified.
(2) Operation and maintenance funds (O & M Funds). Out of the revenues of the Receiving Fund there shall be first set aside a fund designated as the "Operation and Maintenance Fund" a sum sufficient to provide for the next succeeding period of all current expenses for maintenance thereof as may be necessary to preserve the system in good repair and working order.
(3) Debt Retirement Fund. Revenues from the system are not generally to debt retirement since the improvements are being financed from general obligation bonds. Due, however, to the inclusion of a debt retirement component on the charges to non-taxpaying users, there shall be established a Debt Retirement Fund. There shall be deposited into this Fund sufficient revenues to cover the pro-rata share of debt retirement allocated to non-taxpaying customers.
(4) Replacement Fund. There shall be established and maintained a fund designated as "Water Resource Recovery Fund" which shall be used solely for replacement of equipment at the water resource recovery facility and pumping stations. The amount set aside each year shall conform to the established schedule. The Replacement Fund shall be collected and deposited in a depository bank account separate from the Receiving Fund account.
(5) Improvement Fund. There shall be next established and maintained a fund designated as the "Improvement Fund" which shall be used solely for the purpose of making improvements, extensions and enlargements to the system. There shall be deposited into said Fund such revenues as collected from the Improvement Fund charges. Such charges shall be determined by the Commission.
(6) Surplus Fund. Monies remaining in the Receiving Fund at the end of any operating year after full satisfaction of the foregoing funds, shall be hereafter used in connection with any other project of the city directly related to the purposes of the system. This shall not apply to all excess revenues collected from a class of users for operation and maintenance. Such excess revenues shall be applied to the cost of operation and maintenance attributable to that class for the next year, and that user class rate shall be adjusted accordingly.
(7) Bank accounts. All monies belonging to any of the foregoing funds or accounts may be kept in one bank account in which event the money shall be allocated on the books and records of the city within the single bank account in the manner set forth above.
(8) Deficiencies in funds. In the event the monies in the receiving fund are insufficient to provide the current requirements of the Operation and Maintenance Fund or Contract Payment Fund, any monies and/or securities or other funds of the system may be transferred to such fund, to the extent of any deficiency therein. All borrowed (transferred) funds shall be paid back to the funds or securities from which it was borrowed by raising the rates of that class, or classes, for which monies received were insufficient to provide for the current requirements of operation and maintenance.
(9) Investment of funds. Monies in any fund or account established by the provisions of this chapter may be invested or deposited in any lawful investments or deposits and may be invested in obligations of the United States of America in a manner and subject to any limitations set forth in the laws of the state. Income received from such investments shall be credited to the fund from which said investments were made, or pro rata in the case of a single bank account.
(10) Insurance. The city shall maintain and carry insurance on all physical properties of the system, of a kind and in the amounts normally carried by public utility companies and municipalities engaged in the operation of sanitary sewage disposal systems. All monies received from losses under such insurance policy shall be applied solely to the replacement and restoration of the property damaged or destroyed.
(D) Signatures. All reports and documents required of the user by the POTW must be signed by an authorized representative of the user and are subject to federal and state regulations governing fraud and false statements.
(Ord. 622, passed 3-4-85; Am. Ord. 727, passed 4-29-91; Am. Ord. 1074, passed 9-27-21)