The revenues of the Downriver Sewage Disposal System derived from the collection of the rates and charges imposed by this chapter are hereby ordered to be set aside as collected and deposited in the Security Bank, Southgate, Michigan, a bank duly qualified to do business in the State, in an account to be designated the Downriver Sewage Disposal System Receiving Fund (hereinafter referred to as the Receiving Fund). Such revenues so deposited are pledged for the purpose of the following funds and shall be transferred from the Receiving Fund periodically in the same manner and at the times hereinafter specified.
(a) Operation and Maintenance Fund. Out of the revenues in the Receiving Fund, there shall first be set aside, quarterly, into a separate depository account designated the 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. However, there shall not be transferred to the Operation and Maintenance Fund, in any quarter, a sum larger than the revenues derived from the charging of the debt service rate, as fixed by this chapter, on the billing immediately preceding such quarter.
(b) Contract Payment Fund. There shall next be established and maintained a separate depository account designated as March 1, 1962, Downriver Sewage Disposal Contract Payment Fund (hereinafter referred to as the Contract Payment Fund), which shall be used solely for the purpose of making the payments required by the provisions of the agreement between the County and the City, dated March 1, 1962. The moneys in such Contract Payment Fund shall be kept on deposit with the Security Bank of Southgate, Michigan. Out of the revenues remaining in the Receiving Fund after provisions have been made for the Operation and Maintenance Fund as provided in subsection (a) hereof, there shall next be set aside an amount proportionately sufficient to provide for the payment required to be made by the City pursuant to the contract dated March 1, 1962. The amount so set aside, not later than May 1 and September 1 of each year, shall be not less than the payment required to be made by the City on such dates pursuant to such contract.
(c) Surplus Moneys. Moneys remaining in the Receiving Fund at the end of any operating year, after satisfying the requirements of subsections (a) and (b) hereof, may be paid into the Contract Payment Fund and used for the purpose of paying, in advance, the payments required to be made by the City by the terms of the agreement dated March 1, 1962, or in the discretion of Council, may be transferred to a special depository account to be established, maintained and designated as the Improvement and Extension Fund and used for improvements, enlargements, extensions or repairs to the System. However, if there is any deficit in the Contract Payment Fund or in the Operation and Maintenance Fund on account of defaults in setting aside therein the amounts required in this section, then transfers shall be made from such funds remaining in the Receiving Fund at the end of any operating year or from moneys in the Improvement and Extension Fund to the Contract Payment Fund and Operation and Maintenance Fund in the priority and order named to the extent of such deficits.
(1974 Code Sec. 2.116)