§ 40-194. Accounts and funds.

(a)

Establishment of funds. The revenues of the system shall be set aside as collected and deposited in a separate depository account in the village bank duly qualified to do business in the state in an account to be designated "Sewage Disposal System Receiving Fund," referred to as the "receiving fund." The revenues so deposited shall be transferred from the receiving fund periodically in the following manner and at the times specified:

(1)

Operation and maintenance fund. Out of the revenues in the receiving fund, there shall be first set aside quarterly into a depository account, designated "Operation and Maintenance Fund," a sum sufficient to provide for the payment of the next quarter's current expenses of administration and operation of the system and such current expenses for the maintenance thereof as may be necessary to preserve the system in good repair and working order.

(2)

Contract payment fund. There shall next be established and maintained a depository account, to be designated "Contract Payment Fund," which shall be used solely for the payment of the village's obligations to the county pursuant to the contract. There shall be deposited in the fund, quarterly, after requirements of the operation and maintenance fund have been met, such sums as shall be necessary to pay the contractual obligations when due. Should the revenues of the system prove insufficient for this purpose, such revenues may be supplemented by any other village funds legally available for such purpose.

(3)

Replacement fund. There shall next be established and maintained a depository account, designated "Replacement Fund," which shall be used solely for the purpose of making major repairs and replacements to the system if needed. There shall be set aside into the fund, after provision has been made for the operation and maintenance fund and the contract payment fund, such revenues as the village council shall deem necessary for this purpose.

(4)

Improvement fund. There shall next be established and maintained an improvement fund for the purpose of making improvements, extensions and enlargements to the system. There shall be deposited into the fund, after providing for the replacement fund, such revenues as the village council shall determine.

(5)

Surplus moneys. Moneys remaining in the receiving fund at the end of any operating year, after full satisfaction of the requirements of the funds established in this subsection, may, at the option of the village council, be transferred to the improvement fund or used in connection with any other village project reasonably related to purposes of the system.

(6)

Bank accounts. All moneys belonging to any of such funds or accounts may be kept in one bank account, in which event the moneys shall be allocated on the village books and records within this single bank account, in the manner set forth in this subsection.

(b)

Transfer of moneys to correct deficits. If the moneys in the receiving fund are insufficient to provide for the current requirements of the operation and maintenance fund, any moneys and/or securities in other funds of the system, except sums in the contract payment fund derived from tax levies, shall be transferred to the operation and maintenance fund to the extent of any deficit therein.

(c)

Investments. Moneys in any fund or account established by this section may be invested in obligations of the United States of America, in the manner and subject to the limitations provided in Public Act No. 94 of 1933 (MCL 141.101 et seq.). If such investments are made, the securities representing the investments shall be kept on deposit with the bank or trust company having on deposit the fund from which such purchase was made. Income received from such investments shall be credited to the fund from which the investments were made.

(Ord. No. 156, § 9, 6-14-1971)