New Franklin Separation of Funds ordinance (§ 705.320)

That portion of the total user charge collected which is designated for operation and maintenance including replacement purposes shall be deposited in a separate non-lapsing fund known as the Operation, Maintenance and Replacement Fund and will be kept in three (3) 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). Operational costs shall include the costs of treatment. Costs associated with debt retirement of borrowed capital for the treatment works may also be included in this account.

2. Two (2) accounts designated for the specific purpose of insuring replacement needs over the useful life of the treatment works and sewer system (replacement accounts). Deposits in the replacement accounts shall be made annually from the operation, maintenance and replacement revenue in the amount of two thousand seven hundred seventy-nine dollars ($2,779.00) to the treatment works account and two thousand dollars ($2,000.00) annually to the sewer account.

3. Fiscal year-end balances in the various accounts 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 and maintenance account and the replacement accounts shall be returned to their respective accounts upon appropriate adjustment of the user charge rates. The user charge 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.