§ 52.17. WATER UTILITY CASH RESERVE FUND CREATED; DEPOSIT AND DISPOSITION OF FUNDS.

(A) Pursuant to I.C. 8-1.5-3-11(b), there is created a special nonreverting fund to be known as the "Water Utility Cash Reserve Fund." All or a portion of any surplus revenues of the water utility of the town, as defined by I.C. 8-1.5-3-11(c) and as determined monthly by the governing body of the utility, may be deposited in or transferred to the Water Utility Cash Reserve Fund. Moneys on deposit in the Water Utility Cash Reserve Fund may be disposed or used as follows.

(1) They may, upon authorization of the utility governing body, be loaned to another municipally owned utility, at a rate of interest to be determined by the governing body, for a period not to exceed five years in accordance with I.C. 8-1.5-3-11(f) or may be loaned without interest to a fund of the civil town for a period not to exceed December 31 of the then current year in accordance with I.C. 36-1-8-4 and I.C. 8-1.5-3-12;

(2) They may, upon order of the governing body of the utility, be reallocated to the Operating and Maintenance Fund, Sinking Fund or other fund of the utility if necessary to meet expenses or legal obligations; or

(3) To the extent not otherwise committed and disposed under subsections (1) or (2), and subject to any further restrictions which may pertain pursuant to any ordinance governing any waterworks revenue bonds then outstanding, all or a portion of the amount on deposit in the Water Utility Cash Reserve Fund as of June 30 of each year (or, in an emergency, that may be on deposit at any other times) may by order of the Town Council be permanently transferred to the town General Fund and may then be budgeted, appropriated and expended for any purpose for which General Fund revenues may be used, all as provided by I.C. 8-1.5-3-11(d).

(B) Moneys in the Water Utility Cash Reserve Fund may also be invested in the manner hereinafter provided.

(`86 Code, § 2-6-3) (Ord. 86-C1, passed 7-15-86)