A. Establishment.

(1) The City establishes a Sewer Fund as an income fund to receive all revenues generated by the sewer service charge system and all other income dedicated to the operation, maintenance and replacement of the wastewater treatment works, including special charges and fees.

(2) The City also establishes the following accounts as income and expenditure accounts within the Sewer Service Fund:

(a) Operation and Maintenance Account.

(b) Equipment Replacement Account.

B. Revenues to be held by Clerk/Treasurer. All revenue generated by the sewer service charge system shall be held by the Clerk/Treasurer separate from all other funds of the City. Funds received by the Sewer Service Fund shall be transferred to the accounts established in Subsection A of this section in accordance with state and federal regulations and the provisions of this article.

C. Equipment Replacement Account. Revenue generated by the sewer service charge system sufficient to ensure adequate replacement throughout the design or useful life of the wastewater facility shall be held separate in the Equipment Replacement Account and dedicated to affecting replacement costs. Interest income generated by the Equipment Replacement Account shall remain in the Equipment Replacement Account.

D. Operation and Maintenance Account. Revenue generated by the sewer service charge system sufficient for operation and maintenance shall be held separate in the Operation and Maintenance Account.