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The revenues of the sewage disposal system derived from the collection of the rates are ordered to be set aside as collected in a designated fiscal agency of the city in a separate depository fund to be designated Sewage Disposal System Receiving Fund (hereinafter referred to as the Receiving Fund), and the revenues in the Fund are pledged for the purpose of the following funds and shall be transferred from the Receiving Fund periodically in the manner and at the time hereinafter specified.
(A) Out of the revenues in the Receiving Fund there shall be set aside monthly, into a separate depository fund designated Operation and Maintenance Fund, a sum sufficient to provide for the payment of the next month’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.
(B) Out of the revenues in the Receiving Fund there shall be set aside annually, into a separate depository fund designated Replacement Fund, a sum to be determined by the City Manager to meet the annual replacement requirements of the sewage disposal system. The Fund shall be used to replace equipment associated with the sewage disposal system as said equipment’s useful life ends.
(C) Out of the revenues in the Receiving Fund there shall be set aside annually, into a separate depository fund designated Depreciation Fund, a sum as budgeted for use within the sewage disposal system as the City Council shall deem fit.
(D) (1) The revenues remaining in the Receiving Fund after provision has been made for expenses of operation and maintenance, replacement and depreciation of the system may be allocated and used, at the discretion of the City Commission, for any of the following purposes and in such amounts as is deemed advisable.
(a) Such moneys, or any part thereof, may be set aside into the Debt Retirement Fund of the city and allocated and set aside on the books and records of the city and used and applied solely and only for the payment of the principal of and interest on the general obligation sewage disposal system bonds.
(b) Such moneys, or any part thereof, may be set aside and used to the extent necessary for completion of the construction costs of the sewage disposal system improvements for which general obligation bonds have heretofore been issued.
(2) After the construction of the sewage disposal system improvements has been fully completed and all costs in connection therewith have been paid in full, all revenues remaining after deducting operation and maintenance expenses shall be used in the manner specified in subsection (a) above.
(1990 Code, § 2.132)