A. The user charge system shall generate adequate annual revenues to pay the costs associated with debt retirement of bonded capital associated with financing the treatment works which the city may by ordinance designate to be paid by the user charge system.

B. That portion of the total user charge collected which is designated for operation and maintenance including replacement purposes as established in subsection (B)(4) of this section shall be deposited in a separate non-lapsing fund known as the wastewater fund and will be used to fund four primary accounts as follows:

1. An account designated for the specific purpose of defraying the administrative costs and to meet annual debt requirements for the sewer department hereinafter known as the administration account;

2. An account designated for the specific purpose of defraying operation and maintenance costs of the wastewater treatment facility hereinafter known as the sewer treatment account;

3. An account designated for the specific purpose of defraying operation and maintenance costs of the wastewater collection system hereinafter known as the sewer collection account;

4. An account designated for the specific purpose of ensuring the replacement needs over the useful life of the treatment works hereinafter known as the replacement account. Deposits in the replacement account shall be made at least annually from the operation, maintenance and replacement revenue in the amount of nine thousand three hundred forty dollars ($9,340.00) annually.

C. All accounting procedures will be in accordance with generally accepted accounting principles (GAAP), under the auspices of the Municipal Finance Officers Association and Kansas Statutes. (Prior code § 9-401(c))