122

Section 13-122 Gas system renewal and extension reserve fund.

(a) The special fund, known as the "Gas System Renewal and Extension Reserve Fund," is hereby maintained as a separate and unique fund. The city, from revenues derived from the operation of its natural gas system, shall pay into the fund twelve (12) percent of the net income from the system before depreciation charges are made. The monies in the fund shall be used and applied soley for:

(1) Improvements, extensions, and replacements of buildings, lands, equipment, and distribution and transmission systems now owned and used or which may hereafter be acquired by the city in connection with the operations of its natural gas system; and shall not be used or applied for ordinary operation and maintenance nor for ordinary service connections.

(2) In case of an emergency having a major effect upon the natural gas system caused by some extraordinary occurrence which makes it necessary to use funds of the gas system for the alleviation or removal of such effects, and an insufficiency of money exists in the revenue fund to meet such emergency.

(b) No expenditure of money shall be made from this fund except by resolution carried by two-thirds majority vote of the city council.. All depositories and signatures for disbursement of funds shall be designated by a resolution of the city council.

(c) All sums in the fund, in excess of amounts required for immediate disbursement, may be invested in securities which are direct and general obligations of the U.S. Government or its agencies, or guaranteed by the U.S. Government or its agencies as to both principal and interest, municipal and state bonds, bank certificates if protected by escrow of an equal value of the above type investments, or federal savings and loan to the limit covered by insurance except that such funds shall not be invested in bonds of the city. All interest accumulations from the bonds and certificates shall be invested in the fund.

(d) All depositories and all signatures for disbursement of natural gas system funds shall be designated by resolution of the city council.

(Code 1958, 18-43; Ord. of 9-8-86)