(A) The City Controller shall as soon as practicable after adoption of this section take all steps deemed reasonably necessary to separate the accounts of the Sanitation Department and the Sewer Utility into separate funds under the control of the City Controller. The entire deficit balance of the Sanitation Department shall be carried forward into, and/or maintained in, the fund established for the Sanitation Department, and no portion of the deficit balance shall be carried forward into, and/or maintained in, the fund established for the Sewer Utility.
(B) (1) On August 26, 2006, the Council adopted Ord. G-06-29, which ordinance in part pledged certain Economic Development Income Tax (EDIT) funds for the benefit of the Sewer Utility on an ongoing basis as part of a restructuring of the schedule of rates and charges of the Sewer Utility (the "EDIT Pledge"). Provided that, the EDIT Pledge remains in effect and is not in any manner diminished or impaired:
(a) To any extent from the pledge effected by Ord. G-06-29; or
(b) During the period that any existing bond indebtedness of the Sewer Utility remains outstanding, then the payment and/or pledge of the EDIT funds shall to, or for the benefit of, the Sewer Utility constitute the full, complete and final repayment of the deficit balance of the Sanitation Department that is presently owed to the Sewer Utility.
(2) In the event that the EDIT Pledge is in any manner subsequently impaired or diminished, by action of the Council or otherwise, in a manner that is violative of the provisions of this section, the current deficit balance of the Sanitation Department, less any EDIT funds hereinafter actually paid to, or for the benefit of, the Sewer Utility pursuant to the EDIT Pledge prior to such impairment or diminution, shall be fully due and payable to the Sewer Utility within 12 months after the action or condition that results in an objectionable impairment or diminution of the EDIT Pledge pursuant to the provisions of this section first occurs.
(C) The City Controller shall make a written report to the Council upon completion of the steps necessary to separate the accounts of the Sanitation Department and the Sewer Utility into separate funds as required by this section.
(D) The Council acknowledges that the City Controller presently receives a single monthly distribution of sanitary sewer funds, stormwater funds and sanitation funds from the city's contract billing agent, Indiana-American Water Company, and that the funds are then separated by the City Controller and applied to the appropriate funds and/or accounts of respective departments. So long as such billing contract remains in effect, the receipt and separation of funds by the City Controller in such manner shall be deemed to be consistent with the requirements of this section.
(Ord. G-07-36, passed 8-6-2007)