(A) There is hereby established a fund, to be known as the “Water Revenue Fund”, in which shall be deposited all revenues from the various operations of the water system. The existing Water Fund of the town is hereby designated as such Water Revenue Fund. Revenues from the various operations of the water system shall be accounted for separately under the Water Revenue Fund. All revenues related to the system, including, but not limited to, all rates, fees, credits and charges (“system revenues”), shall be accounted for in the Water Revenue Fund as being revenues of the system. System revenues shall be used: first, to pay for the operation and maintenance expenses of the system; second, to pay debt service; third, to fund or replenish any required debt service or other reserve fund; fourth, for the replacement of and additions to the system; and fifth, for any other purpose approved by the Board of Trustees as the governing body of the enterprise. All amounts on hand in such fund shall be invested by the Board of Trustees in investments proper for public funds.
(B) The enterprise may pledge all or any portion of the Water Revenue Fund, including revenues anticipated to be collected, to the payment of principal; interest; premium, if any; and reserves for revenue bonds or any other obligations lawfully issued or otherwise contracted for by the enterprise for the payment or other financing of costs of the system, or for the purpose of refunding any obligations issued or otherwise contracted for such purpose.
(Ord. 6-10, passed 10-13-2010)