(A) Generally. 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, in an account to be designated Summit Township Sewer System Receiving Fund (the “Receiving Fund”) and the revenues so deposited shall be transferred from the Receiving Fund periodically in the manner and at the time hereafter specified.
(B) Operation and Maintenance Fund. Out of the revenues in the Receiving Fund there shall be first set aside quarterly into a separate 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 the current expenses for the maintenance thereof as may be necessary to preserve the same in good repair and working order, including payment of the charge for sewer treatment to the City of Jackson.
(C) Contract Payment Fund.
(1) 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 for the system or any part thereof.
(2) There shall be deposited in the fund quarterly, after requirements of the Operation and Maintenance Fund have been met, the sums as shall be necessary to pay the contractual obligations when due.
(3) Should the revenues of the system prove insufficient for this purpose, the revenues may be supplemented by any other funds of the township legally available for the purpose.
(D) Replacement Fund.
(1) There shall next be established and maintained a separate depositary account, designated “Replacement Fund,” which shall be used solely for the purpose of making major repairs and replacements of the system if needed.
(2) There shall be set aside into the fund, after provision has been made for the Operation and Maintenance Fund and the Contract Payment Fund, the revenues as the Township Board shall deem necessary for this purpose.
(3) Monies deposited in this fund shall not be transferred out of this fund.
(E) Improvement Fund.
(1) There shall next be established and maintained an Improvement Fund for the purpose of making improvements, extension and enlargements to the system.
(2) There shall be deposited into the fund, after providing for the foregoing fund, the revenues as the Township Board shall determine.
(F) Surplus monies. Monies 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.
(G) Bank accounts. All monies belonging to any of the foregoing funds or accounts may be kept in 1 bank account, in which event the monies shall be allocated on the books and records of the township within this single bank account, in the manner above set forth.
(H) Subaccount. Notwithstanding the foregoing, revenues from connection fees (or portions thereof) payable in part or in whole as payback payments pursuant to a payback agreement approved by the Township Board pursuant to which a landowner, developer, or other municipality has advanced all or a portion of the cost of construction of an extension of the public sewer system or an extension thereof shall be set aside in a separately designated subaccount of the Receiving Fund and held therein until due in accordance with the terms of the payback agreement.
(Ord. 12.00, passed 9-14-1999)