§ 35.03. CASH RESERVE FUND.

(A) A Cash Reserve Fund is established which allows for the transfer of surplus earnings of a municipally-owned utility or utilities to the town's general fund, and the Cash Reserve Fund shall be carried on the records of the utility or utilities by providing for monthly contributions or transfers to the Cash Reserve Fund of surplus earnings of the utility or utilities.

(B) Surplus earnings are defined as those cash earnings remaining after provision has been made to take care of current obligations, including:

(1) Operating expense;

(2) Depreciation or Replacement Fund;

(3) Bond and Interest Sinking Fund;

(4) Retirement Fund; or

(5) Any other priority fund requirement fixed by law.

(C) The Cash Reserve Fund also may be used to make loans between municipally-owned utilities for periods not to exceed five years, and at any interest rate, with the repayment of principal and interest, if any, of the loan, being made and returned to the Cash Reserve Fund.

(D) I.C. 8-1.5-3-11, or any successor statute, governs the management of this Fund in all other respects.

(`93 Code, § 2-118) (Ord. 388, passed 5-24-84)

Cross-reference:

Sewer Funds, see §§ 53.095 et seq.