§ 25-60.5. Operation, maintenance and replacement fund.

That portion of the total user charge collected which is designated for the operation and maintenance, including replacement purposes, shall be deposited into a separate non-lapsing fund known as the operation, maintenance and replacement fund and will be kept in two (2) primary accounts as follows:

(1)

The operation and maintenance account shall be an account designated for the specific purpose of defraying operation and maintenance costs (excluding replacement) of the water system. Deposits in the operation and maintenance account shall be made on an annual basis from the operation and maintenance revenue.

(2)

The replacement account shall be an account designated for the purpose of ensuring replacement needs over the useful life of the water system. Deposits in the replacement account shall be made on an annual basis from the replacement revenue in the amount of two hundred twenty thousand five hundred ninety-four dollars and twenty cents ($220,594.20) annually. (This was calculated with a starting balance of eighty thousand dollars ($80,000.00))

(3)

Fiscal year-end balances in the operation and maintenance account and the replacement account shall be carried over to the same accounts in each subsequent fiscal year and shall be used for no other purposes than those designated for these accounts. Monies which have been transferred from other sources to meet temporary shortages in the operation, maintenance and replacement fund shall be returned to their respective accounts upon appropriate adjustment of the user charge rates for operation, maintenance and replacement. The user charge rates(s) shall be adjusted such that the transferred monies will be returned to their respective accounts within the fiscal year following the fiscal year in which the monies were borrowed.

(Ord. No. 11685, § 4, 9-27-2004)