§ 16.5. Utility Finances.

(a)

Separate accounts shall be kept for each public utility owned or operated by the city. Such accounts for utilities for the furnishing of public utility services shall be designed to show the financial results of city ownership or operation in the same manner as the financial results of a corresponding privately-owned utility would be shown, except that taxes need not be accounted for. To that end the accounts shall show all assets, liabilities, revenues, expenses, reserves, and surplus. Revenues shall include charges rendered by such utility to any other city department or fund, including by the way of illustration but not limited thereto, charges for water for municipal buildings and fire hydrant rentals. Such charges shall be computed in a reasonable manner considering cost and value of the service and the practice of privately owned utilities and where the service is comparable to that provided to other customers, the charge shall be the same as to other customers.

(b)

Expenses shall include charges for services rendered to such utility by other city departments. All the inter-departmental charges provided for herein shall actually be made in the accounts of the city.

(c)

The rates and charges for any municipal public utility for the furnishing of public utility services shall be so fixed as to at least, meet all costs of such utility.

(d)

Except for the inter-departmental charges provided for herein and except for temporary short-term loans in anticipation of taxes or receipts, there shall be no transfer of funds to or from any utility for the furnishing of public utility services from or to any other fund or account of the city, unless approved by a majority vote of the electors of the city voting thereon, or unless such utility is discontinued, and all outstanding debt service obligations and bond covenants have been met and all statutory requirements have been complied with. If money is loaned to other city funds in anticipation of tax collections or receipts, it shall be repaid to the utility at the earliest possible date at which monies are available, but in no case more than one year after borrowing.

(e)

Nothing contained herein, however, shall prevent the city from pledging its full faith and credit for the payment of principal and interest on bonds issued for the purpose of any such utility or to use general city monies to pay such principal and interest if sufficient monies therefor are not available in the funds of such utility.