(A) A fund to be known as the “M.W.D. Water Fund” is hereby created and established. Such monies as are collected as provided in this code shall be deposited to this fund and once so deposited may be expended as provided in this article V.
(B) (1) As payment for the costs of initiating, supervising and conducting, including legal expenses, the proceedings for annexation of territory paying the surcharge into this fund or any part of such territory, together with other territory not paying such surcharge, to the Metropolitan Water District and to the Calleguas Municipal Water District as a payment for any back taxes levied by either of such districts against the territory on which the property or area having made such payment is included for annexation proceedings.
(2) In the event the property or area so charged shall not have annexed to the Metropolitan Water District within three years from the date of its annexation to the city or the date of such payment, whichever first occurs, the city may transfer to and expend such accumulated funds for the water division for purposes of plant expansion, repairs and maintenance and for water revenue bond interest and redemption requirements.
(`64 Code, Sec. 2-140) (Ord. No. 704, 915)