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This entry was published on 2014-09-22
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Municipal operation; revenue and accounts; operating and other funds
Rapid Transit (RAT) CHAPTER 48-A, ARTICLE 4
§ 37. Municipal operation; revenue and accounts; operating and other
funds. a. The aggregate amount of the gross receipts of moneys derived
directly or indirectly from or in connection with the operation by the
city of any road shall be known as the revenue thereof. Such revenue
shall be derived from fares to be charged persons riding thereon; from
rates to be charged for carrying property thereon; from rentals or fees
to be charged for concessions or privileges thereon in connection
therewith; from the sale of surplus power, and any other receipts from
whatever source derived.

b. The board of transportation shall establish and maintain a system
of accounts to show at all times the cost of the several classes of
property used in operation and the sources of funds used in the
acquisition of such property; the several classes of operating revenue
and other income; maintenance expenses; interest, amortization,
depreciation and all other charges against earnings. Such accounts shall
be kept in accordance with the uniform system of accounts prescribed for
railroads by the public service commission or other duly constituted
authority and published in the City Record.

c. The revenue derived from all sources of income of any such road
shall be deposited daily by the board in the name of the city in banks
to be designated by the board of transportation and shall be held
separate and apart from all other funds of the city as the operating
fund for the payment therefrom of the expenses of operation, maintenance
and repairs, and depreciation, interest and amortization charges. An
accurate report of all moneys received shall be made daily to the
comptroller of the city, who shall have power and whose duty it shall be
to audit currently all the financial details of municipal operation,
which audit shall not preclude examination of such account by any other
properly constituted authority. An itemized report of the result of such
municipal operation shall be filed each month by the board of
transportation with the mayor and the board of estimate.

d. From the operating fund thus derived there shall be deducted the
following charges in the order named and a separate accounting be made
of each:

1. Operating expenses, exclusive of maintenance, including all
expenses for personal service, materials and supplies used in operation.

2. Expense of maintenance and repairs of structures and equipment,
which shall be the actual cost of keeping the structures and equipment
in thoroughly good order and repair, and shall include the replacement
of parts of construction and parts of equipment units, but shall not
include the renewal or replacement of any complete units of property, as
such units are defined and specified from time to time by the board of
transportation for renewal or replacement from the capital reserve fund.

3. The amount of interest actually payable by the city and the
proportionate annual contributions to sinking fund or other funds to
amortize and retire the bonds, corporate stock or other evidence of
indebtedness issued by the city on account of any road.

4. Contributions to a depreciation fund for replacement or renewal of
worn-out, obsolete or inadequate units of structures or equipment, of
the amount the board of transportation shall determine is the estimated
net loss of value, after maintenance has been applied, of such complete
units of property, with due provision for obsolescence or inadequacy of
such units.

e. The deduction for expenses of operation and maintenance shall be
made currently as required, and the deductions for depreciation,
interest and amortization installments shall be made after the close of
operations each month and shall be the monthly proportion of the annual
amount required for such purposes.

f. In addition to the principal operating fund in which all the
revenue shall be deposited as above provided, there shall be established
and maintained in the custody of the comptroller a separate fund and
bank account, to be designated as the capital reserve fund, to which
shall actually be transferred the amounts deducted from revenue on
account of interest, amortization and depreciation. Any surplus or
balance which shall accrue from the revenue at the end of the fiscal
year, in excess of an amount equal to the average cost of operation and
maintenance for one month during such fiscal year, shall also be paid
into such capital reserve fund. Such fund shall be available for
disbursement in the same manner as the principal operating fund for the
following purposes in the order specified:

1. Interest payable by the city on account of bonds or other evidences
of indebtedness issued, and contributions to sinking funds established
for the retirement thereof;

2. Amounts necessary for renewals or replacements on account of
depreciation and obsolescence.
Any surplus accruing in the capital reserve fund over and above the
amounts disbursed for the purposes specified shall be retained in such
fund and may be expended only for the support, installation or extension
of such transportation facilities. All interest earnings of such fund
shall be added to the fund. The comptroller shall make all payments out
of the capital reserve fund, and shall report quarterly to the board of
estimate the condition of the fund, itemized as to the amount on hand
for interest, amortization of bonds or other evidences of indebtedness,
depreciation and surplus, and shall keep the account of the fund so
g. Payments or withdrawals of moneys from the operating fund and the
capital reserve fund shall be made by checks drawn and signed by the
comptroller upon vouchers certified by a member or an officer of the
board of transportation, duly authorized by resolution of such board,
except that payments of interest, contributions to sinking funds and on
account of retirement of bonds or other evidences of indebtedness shall
be made by the comptroller upon his own initiative as such payments
become due and payable, but a memorandum of such payments shall be
transmitted by the comptroller to the board of transportation for entry
in the accounts thereof. The comptroller from time to time shall inform
the board of transportation in writing as to the amount to be
periodically deducted from revenue on account of interest and
amortization requirements, and the monthly charges and vouchers for such
amounts shall be made in accordance with such devices.