The revenues of the system shall be set aside, as collected, and deposited in a separate depository account in The Bank of Three Oaks, a bank duly qualified to do business in the state, in an account to be designated Sewage Disposal System Receiving Fund (hereinafter, for brevity, referred to as the “Receiving Fund”), and said revenues so deposited shall be transferred from the Receiving Fund periodically in the manner and at the times hereafter specified.
(A) Operation and Maintenance Fund. Out of the revenues in the Receiving Fund, there shall be first set aside quarterly into a 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 such current expenses for the maintenance thereof as may be necessary to preserve the same in good repair and work order. EQUIPMENT REPLACEMENT means expenditures for obtaining and installing equipment, accessories or appurtenances which are necessary during the useful life of the treatment works to maintain the capacity and performance for which such works were designed and constructed. Replacement is an operation and maintenance expense.
(B) Contract Payment Fund. There shall next be established and maintained a depository account, to be designated Contract Payment Fund, which shall be used solely for the payment of the village’s obligations to the county pursuant to the aforesaid contract. There shall be deposited in said fund quarterly, after requirements of the Operation and Maintenance Fund have been met, such sums as shall be necessary to pay said contractual obligations when due. Should the revenues of the system prove insufficient for this purpose, such revenues may be supplemented by any other fund of the village legally available for such purpose.
(C) Replacement Fund. There shall next be established and maintained a depository account designated Replacement Fund, which shall be used solely for the purpose of making major repairs and replacements to the system, if needed. There shall be set aside into said fund, after provision has been made for the Operation and Maintenance Fund and the Contract Payment Fund, such revenues as the Village Council shall deem necessary for this purpose.
(D) Improvement Fund. There shall next be established and maintained an Improvement Fund for the purpose of making improvements, extensions and enlargements to the system. There shall be deposited into said fund, after providing for the foregoing fund, such revenues as the Village Council shall determine.
(E) 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 Village Council be transferred to the Improvement Fund or used in connection with any other project of the village reasonably related to purposes of the system.
(F) Bank accounts. All money belonging to any of the foregoing funds or accounts may be kept in one bank account, in which event the monies shall be allocated on the books and records of the village within this single bank account, in the manner above set forth.
(Ord. 74, passed 11-14-1979)