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POL Government Elected Officials Auditor Griffin-Valade Charter, Code & Policies City Code & Charter Online Code & Charter Title 7 Business Licenses Chapter 7.12 Public Service Permits, Franchises and Regulations
7.12.220 Depreciation Accounts of Public Utilities.

Every grantee or holder of a franchise or permit from the City for public utility operation, or operating within the City a public utility, shall carry on its books a proper and adequate depreciation account in accordance with the requirements set forth by the State Public Utilities Commissioner, if the Commissioner has made a determination that such depreciation account can be reasonably required in the general operations of the public utility within the State.  In the event that the State Commissioner has not ascertained and determined the proper and adequate rates of depreciation of the several classes of property of such public utility, or has not determined whether a depreciation account shall be required or not, such public utility shall request such a determination by the City Council.  Such rates of depreciation shall be such as will provide the amounts required over and above the expenses of maintenance to keep such property in a state of efficiency corresponding to the progress of the industry.  After such determination, such public utility shall conform its depreciation account to the rate so ascertained and determined by City Council.  Any such determination shall be subject to review and change from time to time as the Council may find necessary or appropriate.  All monies provided for depreciation shall be set aside out of the earnings and carried in a depreciation fund.  The monies in this fund may be expended in replacements, new construction, extensions, or additions to the property of such public utility, or invested.  If invested, the income from the investments and proceeds upon sale of such investments, shall also be carried in the depreciation fund.  This fund and the proceeds thereof shall be used for no other purpose than as provided in this Section and for depreciation.  No transfer shall be made from the depreciation fund or depreciation reserve account for any other purpose than set forth in this Section, without first and before such transfer, obtaining the approval of the City Council.