(a) The user charge system shall generate adequate annual revenues to pay costs of annual operation and maintenance including replacement and costs associated with debt retirement of bonded capital associated with financing the treatment works which the city may, by ordinance, designate to be paid by the user charge system. Appendix A of Ordinance No. 3014 is the sewer user charge plan for the initial two-year period of operation of the expanded plant.
(b) The total user charge collected established in section 26-97, shall be deposited in a separate non-lapsing fund known as the sewer utility fund and will be kept in five (5) accounts as follows:
(1) Operation and maintenance account. The city shall set aside in this account each month an amount sufficient for the operation and maintenance of its sewer utility and the expenses of maintenance and operation of said utility shall be paid out of this account.
(2) Sewer utility revenue bond account. Out of the sewer utility fund the city shall pay into this sewer utility revenue bond account, on or before the first day of each calendar month, beginning July 1, 1980, an amount equal to one-sixth (1/6) of the interest which will become due during the next six-month period of all 1979 bonds, all 1980 bonds and all additional bonds then outstanding, plus one-twelfth (1/12) of the principal amount which will become due during the next twelve-month period on all such bonds then outstanding; such transfers to the sewer utility revenue bond account shall be made in such amounts and at such times that there will be sufficient sums in such account to meet the payments required to be made to the county treasurer by Section 12 of Ordinance No. 2883.
(3) Sewer utility bond reserve account. After provisions have been made for each of
the foregoing accounts, the city will continue each month to transfer to this
sewer utility bond reserve account, the sum of one thousand five hundred
twenty-two dollars and fifty cents ($1,522.50) until there is accumulated in
this fund a total of ninety-one thousand three hundred fifty dollars
In addition to such monthly transfer of one thousand five hundred twenty-two dollars and fifty cents ($1,522.50), the city shall each month transfer to this account the sum of one thousand one hundred eighty-six dollars and twenty-five cents ($1,186.25) until there is accumulated in this account an additional amount of seventy thousand eight hundred fifty dollars ($70,850.00) for a total required reserve amount of one hundred sixty-two thousand two hundred dollars ($162,200.00). This reserve shall be maintained in this amount as long as any of the 1979 bonds and 1980 bonds are outstanding, except as hereafter provided. In case any deficiency in the payment into this account occurs, such deficiency shall be made up immediately as soon as any money is available after providing for the foregoing accounts. If at any time or times the amount on hand in the sewer utility revenue bond account described above shall be insufficient to pay either the interest on or principal of the 1979 bonds or 1980 bonds or any additional bonds then outstanding as and when the same become due, the city shall and hereby agrees to use the funds in the sewer utility bond reserve account to pay said interest or principal and to prevent any default in the payment of said interest on or principal of said revenue bonds. If the city shall use any of the funds in the said sewer utility bond reserve account for the purpose mentioned herein, then the city shall make no expenditures to any other fund except to the operation and maintenance account, sewer utility revenue bond account, and sewer utility reserve bond account until the amount in the sewer utility reserve bond account is equal to the required fund level as referred to above or such other amount as shall be established in any ordinance authorizing additional bonds. When the 1979 bonds are no longer outstanding, the maximum required accumulation in this account with respect to the1980 bonds shall be one hundred thirteen thousand seven hundred fifty dollars ($113,750.00). Any ordinance authorizing the issuance of additional bonds shall provide for an increase in the balance required to be accumulated in the sewer utility bond reserve account to an amount not less than the maximum amount of principal and interest payable in any year on the 1979 bonds, the 1980 bonds and all additional bonds to be outstanding after such issuance and such maximum amount shall be required by such ordinance to be accumulated by equal monthly deposits over a period not in excess of five (5) years; provided, however, such ordinance may permit the maximum amount required to be accumulated to be reduced after the 1979 bonds, 1980 bonds, or other additional bonds then outstanding are no longer outstanding.
(4) Replacement, improvement, and extension account. After providing for the operation and maintenance account and making the payments hereinabove required to be made into the revenue bond account and the bond reserve account, there shall be deposited monthly into this account the sum of two thousand eighty-five dollars ($2,085.00). Moneys in this account will be used for the replacement of major equipment with new equipment of equal or improved design. Any moneys in this account over and above those amounts reserved for such equipment replacement may be used for improvement, enlargement or extension of the sewer utility.
(5) Surplus account. After providing for the operation and maintenance account and after making the payments hereinabove required to be made into the sewer utility revenue bond account, the sewer utility bond reserve account and the improvement and extension account, all remaining funds shall be deposited into this surplus account to be used as follows:
(a) To fill any deficiency in the foregoing accounts;
(b) For the purpose of calling under their option provision or for purchasing on the open market 1979 bonds, the 1980 bonds or additional bonds;
(c) For improvements, replacements, extensions, and enlargements to the sewer system.
(c) Fiscal year-end balances in all accounts shall be carried over to the same accounts in the subsequent fiscal year, and shall be used for no other purposes than those designated for these accounts.
Source: Ord. No. 3014, § 8, 10-5-81