Expenditures or withdrawals from the DEPRECIATION RESERVE account for improvements, as defined in § 50.56, for either/or the overhead storage reservoir are hereby authorized as a lawful expenditure when deemed necessary by the Common Council, but only if the following conditions are met upon such replacement.
(A) The cost basis and the estimated useful life of such improvements (or the estimated time that said improvements have extended the useful life of the asset, whichever is applicable), must be determined.
(B) Thereafter, annual depreciation must be determined using these factors and the straight-line method, and recognized in the accounting records and the operating statements. In addition, an equal amount equal to the annual depreciation must be set aside in the depreciation reserve account annually until the cost basis of such improvements has been fully depreciated. This shall be in addition to the requirements in §§ 50.57 and 50.58.
(Prior Code, § 5.0406)