(A) The revenues of the system shall be set aside, as collected, and deposited in a separate depositary account in a bank duly qualified to do business in Michigan to be designated from time to time by the Township Treasurer, in an account to be designated Indian Lake Wastewater System Receiving Fund (hereinafter, for brevity, referred to as the “Receiving Fund”), and said revenues so deposited shall be transferred from the Receiving Fund periodically in the manner and at the times hereafter specified.
(1) Operation and Maintenance Fund. Out of the revenues in the Receiving Fund there shall be first set aside quarterly into a depositary account, designated Operation and Maintenance Fund, a sum sufficient to provide for the payment of the next quarter’s current expenses of administration and operation of the system and such current expenses for the maintenance thereof as may be necessary to preserve the same in good repair and working order.
(2) Contract Payment Fund. There shall next be established and maintained a depositary account, to be designated Contract Payment Fund, which shall be used solely for the payment of the Township’s obligations to the county pursuant to the aforesaid contract. There shall be deposited in said fund quarterly, after requirements of the Operation and Maintenance Fund have been met, such sums as shall be necessary to pay said contractual obligations when due. Should the revenues of the system prove insufficient for this purpose, such revenues may be supplemented by any other funds of the township legally available for such purpose.
(3) Replacement Fund. There shall next be established and maintained a depositary account, designated Replacement Fund, which shall be used solely for the purpose of making major repairs and replacements to the system if needed. There shall be set aside into said fund, after provision has been made for the Operation and Maintenance Fund and Contract Payment Fund, such revenues as the Township Board shall deem necessary for this purpose.
(4) Improvement Fund. There shall next be established and maintained an Improvement Fund for the purpose of making improvements, extensions, and enlargements to the system. There shall be deposited into said Fund, after providing for the foregoing Fund, such revenues as the Township Board shall determine.
(5) Surplus moneys. Moneys remaining in the receiving Fund at the end of any operating year, after full satisfaction of the requirements of the foregoing funds, may, at the option of the Township Board, be transferred to the Improvement Fund or used in connection with any other project of the Township reasonably related to purposes of the system.
(6) Bank accounts. All moneys belonging to any of the foregoing funds or accounts may be kept in one bank account, in which event the moneys shall be allocated on the books and records of the township within this single bank account, in the manner above set forth,
(B) In the event the moneys in the Receiving Fund are insufficient to provide for the current requirements of the Operation and Maintenance Fund, any moneys and/or securities in other funds of the district, except sums in the Contract Payment Fund derived from tax levies, shall be transferred to the Operation and Maintenance Fund, to the extent of any deficit therein.
(Ord. 89-1, passed 9-13-1989)