§ 7.075. Utility reserve fund.

The council shall annually set aside from the income of each of its revenue producing public utilities the following amounts and in the following order, to wit: First; An amount fully sufficient for the payment of principal, interest, reserve fund and sinking fund requirements of any revenue bonds or general obligation bonds secured in whole or in part from such utility revenues, the proceeds of which bonds have been applied to the acquisition, construction or completion of such public utilities. Second: An amount sufficient to pay or provide for the payment of maintenance and operation of such public utilities, including a reserve for maintenance and operation.

Thereafter the council may set aside an amount, from any surplus moneys remaining, to create and maintain a separate utility reserve fund for each public utility. The amount to be set aside in such separate utility reserve fund shall not exceed a sum which, according to the estimate of the City manager and approved by the council, shall be sufficient to meet normal depreciation of such public utility. Such utility reserve funds, if established, shall be used for the replacement, betterment and extension of each of said public utilities and, in addition, may be used for the payment of the principal of and interest on, or retirement prior to maturity of, any revenue bonds of the City or any general obligation bonds secured in whole or in part from such public utility revenues, the proceeds of which bonds have been applied to the acquisition, construction or completion of any such utility, if and to the extent that other funds are not then available for such payment.

(Res. No. 68-10, § 1; amended by General Municipal Election on November 7, 2000; Amended by General Municipal Election on November 2, 2010)