Acquisition and Construction of Extensions and Additions Waterworks authorizing Revenue Bonds to Provide Cost thereof

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to be filed a proper petition with the Public Service Commission for the purpose of securing the required approval of said Commission. Section 3. Beginning as of the date of issuance of the bonds herein authorized, the income and revenues of the existing waterworks together with the income of all extensions, additions, improvements thereto and replacements thereof made pursuant to this ordinance, or subsequently, shall be set aside into a separate and special fund to be used and applied in the maintenance and operation thereof, in establishing a depreciation account, and payment of the principal of and interest on all bonds which by their terms are payable from the revenues of the waterworks. The propor- tion of the gross revenues of said waterworks that shall be paid into the several accounts of said special fund, as provided by said Act, is hereby fixed and determined as follows: (a) Operation and Maintenance Account. Seventy -one per cent (71 %) of the gross revenues of said waterworks shall be set aside into the Operation and Maintenance Account and shall be used to pay the necessary cost of the reasonable and proper operation and maintenance of the waterworks, including any taxes required to be paid. The sum so set aside for operation and maintenance shall be applied exclusively to that purpose until a surplus shall be accumulated in the Operation and Maintenance Account which shall be equal to the cost of maintaining and operating the waterworks during the remainder of the calendar, operating or fiscal year then current and the cost of maintaining and operating the water- works during the calendar, operating or fiscal year then next ensuing. Any excess over,such surplus may be transferred to -4-