Glasgow Accounting ordinance (§ 700.160)

A. The user charge system shall generate annual revenues to pay costs of annual operation and maintenance, including replacement and costs associated with debt retirement of bonded capital associated with financing the treatment works, which the City may by ordinance designate to be paid by the user charge system. That portion of the total user charge which is designated for operation and maintenance including replacement of the treatment works shall be established by this Chapter.

B. That portion of the total user charge collected which is designated for operation and maintenance, including replacement purposes as established in Article IV, shall be deposited in a separate non- lapsing fund known as the "Sewer Utility and Sewer Replacement and Improvement Fund" and will be kept in two (2) primary accounts as follows:

1. An account designated for the specific purpose of defraying operation and maintenance costs [excluding replacement of the treatment works (operation and maintenance account)].

2. An account designated for the specific purpose of ensuring replacement needs over the useful life of the treatment works (replacement account). Deposits in the replacement account shall be made at least annually from the operation, maintenance and replacement revenue in the amount of one thousand dollars ($1,000.00) annually.

C. Fiscal year-end balances in the operation and maintenance account and the replacement account shall be carried over to the same accounts in the subsequent fiscal year and shall be used for no other purposes than those designated for these accounts. Monies which have been transferred from other sources to meet temporary shortages in the operation, maintenance and replacement fund shall be returned to their respective accounts upon appropriate adjustment of the user change rates for operation, maintenance and replacement. The user change rate(s) shall be adjusted such that the transferred monies will be returned to their respective accounts within the fiscal year following the fiscal year in which the monies were borrowed.