San Jose Municipal Code Part 12 Municipal Water System Operating Fund

The municipal water system service area is that territory situated within the boundaries of those areas designated in Section 15.08.260 of the San José Municipal Code as the Alviso water service area; Section 15.08.265 of the San José Municipal Code as the Edenvale water service area, Section 15.08.270 as the Evergreen water service area, Section 15.08.275 as the Coyote water service area, and in Section 15.08.280 as the North San José water service area.

(Ords. 22847, 26903, 29944.)

The consolidated water utility fund established by Ordinance No. 22847, adopted on June 28, 1988, and the Alviso water service area extension and improvement fund, established by Ordinance No. 14715, adopted on June 9, 1969, as continued and maintained as the consolidated potable water utility operating fund by Ordinance No., adopted shall be continued and maintained as the municipal water system operating fund.

(Ords. 22847, 26903, 29944.)

A. All revenues derived from operation of potable water service within the municipal water system service area, including commodity based and fixed revenues from sale of potable water or the provision of potable water for fire protection, shall be credited to and deposited in the municipal water system operating fund. The City Council may transfer to the municipal water system operating fund monies from the general fund or from any other funds which may be used for the purposes set forth in Section 4.80.630.

B. All interest earned on monies in the municipal water system operating fund shall be credited to and deposited to said fund.

(Ords. 22847, 26903, 29944.)

A. Except as provided in this Section 4.80.630, monies in the municipal water system operating fund shall only be expended for costs of water system operations, including but not limited to, payment of required debt service; for repair, on-going capital improvements and maintenance of a potable water system for the municipal water system service area; for transfers to the general fund for indirect overhead and for expenses incurred in the general fund for water system operations, and for the purchase of supplies, materials, and equipment attributable to or necessary for the operation, improvement and maintenance of a potable water system in the municipal water system service area.

B. Monies in the municipal water system operating fund shall be appropriated or the establishment and maintenance of appropriate reserve funds within the municipal water system operating fund, as determined by the City Council on an annual basis through the budget process including but not limited to the following:

1. A capital rehabilitation reserve fund in an amount not to exceed one (1) year of replacement cost depreciation; and

2. A rate stabilization reserve fund in an amount not to exceed ten percent of commodity based revenue as described in subsection A. of Section 4.80.620.

3. An operating reserve in an amount not to exceed 90 days operating budget costs; and

4. An emergency reserve in an amount not to exceed 2% of municipal water system asset value (replacement cost less depreciation.)

(Ords. 22847, 26903, 29944.)