(a) The Municipal Council, through its authorized representative, shall be responsible for the proper management of all funds collected through or generated by the ICR system. ICR payments received from industrial users shall be disbursed in the following manner:
(1) Fifty percent (50%) of the amounts received from industrial users, together with any interest earned thereon, shall be returned to the United States Treasury annually. Said payments shall be made to the U.S. EPA Regional Financial Management Office no later than four (4) months after the end of the annual ICR accounting period.
(2) The Municipality shall retain fifty percent (50%) of the amounts received from the industrial users, together with any interest earned thereon. Eighty percent (80%) of this amount shall be used for the allowable Federal costs of any expansion, upgrading or reconstruction of the wastewater treatment works necessary to meet the requirements of the Act. Before expenditure of these funds, the Municipality shall obtain written approval of the U.S. EPA Regional Administrator, or his authorized representative.
(3) The remaining twenty percent (20%) of the fifty percent (50%) retained by the Municipality may be used at the discretion of the Municipality, except that, these funds shall not be used for construction of industrial pretreatment facilities or as rebates to industrial users.
(b) A portion of the amounts retained by the Municipality may be used to pay the incremental costs of administration of the ICR system. (These are the costs remaining after allocating all costs attributable to the administration of the user charge system to the user charge system account.) The incremental costs shall be maintained separately from all other administration costs of the Municipality. Any funds used for these incremental costs shall come from those funds noted in subsection (a)(3) hereof. When the incremental costs exceed those funds noted in subsection (a)(3) hereof, the necessary funds required may be taken from those funds noted in subsection (a)(2), but only after written approval has been received from the U.S. EPA Regional Administrator, or his authorized representative.
(c) All accumulated ICR amounts in excess of five hundred dollars ($500.00) shall be promptly invested, as noted in subsections (d) and (e) hereof, within five (5) days of its accumulation.
(d) Pending the disbursement of the ICR amounts noted in subsection (a) and (b), the ICR system management shall invest ninety percent (90%) of the ICR amounts (those funds noted in subsection (a)(1) and (2)) in one or more of the following: obligations of the U.S. Government (i.e. Treasury bills, notes or bonds); obligations guaranteed as to principal and interest by the U.S. Government or by an agency of the U.S. Government (i.e. savings accounts guaranteed by the Federal Deposit Insurance Corporation or the Federal Savings and Loan Insurance Corporation, or securities issued by instrumentalities of the United States, such as, Intermediate Credit Banks, Federal Home Loan Banks, Federal Land Banks and Banks for Cooperatives); or, accounts fully collateralized by such obligations heretofore mentioned.
(e) The funds noted in subsection (a)(3) (ten percent (10%) of the ICR payment amounts) may, at the discretion of the ICR system management, be invested in any of the forms of investment noted in subsection (d) or expended for any purpose except as noted in subsection (a)(3).
(f) Detailed and timely records shall be maintained by the ICR system management. The records shall reflect clearly the ICR cash, investment and disbursement activities. Suggested formats for these records are noted in Table 5, Appendix.
(g) Lump sum ICR payments may be processed as a normal ICR payment or they may be set aside in a separate account to be drawn on annually for the remainder of the ICR period.
(h) Uncollected ICR charges which become bad debts as a result of bankruptcy of the industrial users shall be identified, but shall not be recovered from other industrial users or other sources. The Federal share of such charges shall not be paid to the U.S. Government as long as they remain uncollected. (Ord. 18-1980. Passed 10-13-80.)