Establishing Three additional funds in the Water works area

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ORDINANCE NO. ~ ~ ~ ~ - AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND ESTABLISHING THREE ADDITIONAL FUNDS IN THE SOUTH BEND WATER WORKS AREA Statement of Purpose and Intent This ordinance establishes three new "Reserve Funds " in the South Bend Water Works Area. Currently all operations flow through Fund 620 and 622. To improve accounting efficiency and timely utilization of Reserve Funds, the new funds created by this ordinance will establish three new reserve areas. Fund 621, Water Works SRLF Equipment Replacement Cost Reserve Fund - represents a reserve for the replacement cost of GAC Equipment and Media as required by the SRLF. Fund 628, Water Works Debt Service Reserve Fund -represents the maximum annual debt service required (to be adjusted once final borrowing has been determined) and Fund 629, Water Works Debt Reserve Operational & Maintenance Fund - represents two months (1/6 of year) of the 2001 Operating Budget (excluding debt service and capital). NOW, THEREFORE, BE IT ORDAINED by the Common Council of the City of South Bend, Indiana, as follows: Section I. Three new funds are hereby created within the budget for the City of South Bend, namely Fund #621 Water Works SRLF Equipment Replacement Cost Reserve, Fund #628 Water Works Debt Service Reserve and Fund #629 Water Works Debt Reserve Operational & Maintenance. Section II. All sums of money collected and deposited in Fund 628 Water Works Debt Service Reserve and Fund 629 Water Works Debt Reserve Operational & Maintenance, will be by the issuance of.a transfer of funds. Monies collected and deposited in Fund 621 Water Works SRLF Equipment Replacement Cost Reserve will be from transfer of funds and water rate payers. This revenue shall be used solely for the purposes of safety as a protection against default in the payment of principal of and interest on the bond for Fund 628. For Fund 621 the revenue shall be used for the purpose of replacement of the GAC Equipment and Media of the South Bend Water Works Area. Section III. Any and all interest earned on monies deposited in Fund #628 Water Works Debt Service Reserve Fund, Fund #629 Water Works Debt Reserve Operational and Maintenance Fund and Fund #621 Water Works SRLF Equipment Replacement Cost Reserve maybe moved to the Water Works Operating and Maintenance fiord or may remain in the fund. Section IV. Monies remaining in each respective fiend at the end of the fiscal year shall not revert to the South Bend Water Works Operating and Maintenance or Capital Funds. Each fund shall stay in operation until terminated by Council. When any fund has been terminated all the fund balance shall be moved to the Water Works Operating and Maintenance Fund.