A. There is created a cumulative reserve fund to provide monies for Water System Improvements and extraordinary maintenance and equipment replacement.

B. Into such fund shall be paid all System Development Charges collected by City in connection with water service connections.

C. All monies transferred to the fund by the City or paid to the City by new utility users shall be held and utilized as provided herein.

D. Expenditures from the fund shall be solely for capital improvements to the water system, or extraordinary maintenance and/or equipment replacement or repair not ordinarily considered routine maintenance.

E. The City Clerk is authorized to do all things necessary and proper to cause this fund to be created and operated as directed herein.