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Section 99-10 ARTICLE X. GAS SYSTEM

Section 10.1. Gas system authorized.

The City is hereby empowered to buy, lease, construct, or otherwise acquire, extend, operate, and maintain gas (natural or manufactured) generating and distribution systems, together with all necessary appurtenances thereof, and to buy gas (natural or manufactured), and to sell such gas to consumers in the City and surrounding territory and to do any and all other things necessary or incidental thereto.

Section 10.2. Gas system renewal and extension reserve fund.

(a) A fund shall be created and maintained to be known as the City of Thomasville Gas System Renewal and Extension Reserve Fund. The City, from revenues derived from the operation of its gas system shall pay into such fund twelve (12) percent of the net income from the gas system before depreciation charges are made. The moneys in the fund shall be used and applied solely for:

(1) Improvements, extensions, and replacements of lands, building, equipment and distribution systems now owned and used or which may hereafter be acquired by the City in connection with the operations of its 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 gas system caused by some extraordinary occurrence and 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 upon approval by 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 United States government or its agencies, or guaranteed by the United States government or its agencies as to the 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 the fund shall not be invested in bonds of the City. All interest accumulations from such funds in the fund shall be invested in the fund.

(d) All depositories and all signatures for disbursement of funds shall be designated by resolution of the City Council.