(A) For the purpose of this section, the following definition shall apply unless the context clearly indicates or requires a different meaning.
SURPLUS EARNINGS. Any cash earnings remaining after provision has been made to take care of current obligations, including costs for operating expenses, depreciation of replacement fund, sinking fund, bond and interest retirement fund, or any other priority fund, requirements fixed by ordinance or law.
(B) There shall be created a Cash Reserve Fund, which Reserve Fund shall be carried on the records of the utilities known as the town’s Light and Water Departments. Each month contributions or transfers shall be made to the Cash Reserve Fund or any surplus earnings of the town’s Light and Water Departments. However, no transfer to the Cash Reserve Fund shall be made unless or until a depreciation or replacement fund has been established by the town’s Light and Water Departments to which there shall accrue at least 5% of the operating cash revenue each month.
(C) The sum of $1,000 shall be transferred monthly from the town’s Light and Power Fund to the Cash Reserve Fund. The Clerk-Treasurer is authorized and empowered to make the transfer above specified each month into the Cash Reserve Fund.
(D) The Clerk-Treasurer is authorized, directed, and empowered to make monthly transfers to the Cash Reserve Fund of surplus earnings of the town water utility in the sum of not more than $1,000 per month.
(Prior Code, § 33.04) (Ord. passed 2-23-1953; Ord. passed 7-22-1957; Ord. 6-2-83, passed 7-11-1983; Ord. 11-1-83, passed 11-28-1983)