How sewer fund money can be spent

(a) All moneys received by the city pursuant to § 204 (b)(1)(B) of the Federal Water Pollution Control Act amendments of 1972 (P.L. 92-500), § 6-47.1 , and Articles 1 through 10 shall be deposited into the sewer fund and shall be appropriated and expended for the purposes authorized by federal or State law, the implementation of Articles 1 through 10 , or other purposes specified by ordinance. Notwithstanding the foregoing, except for moneys expended for: (1) debt service payments on reimbursable general obligation bonds and other financings; or (2) repayments of interfund transfers and loans, where the proceeds from such bonds, financings, interfund transfers or loans were used to pay wastewater expenditures that are currently paid for by the sewer fund or sewer revenue bond improvement fund, no moneys shall be expended from the sewer fund to reimburse the general fund for expenses incurred in prior fiscal years. (b) In addition, all moneys received by the city from the board of water supply for the sale or long-term lease or rental of a city-owned treatment works to the board shall be deposited into the sewer fund and shall be appropriated and expended only for the following purposes: (1) Land acquisition, planning, design, engineering, construction, inspection, relocation, or equipment necessary for the establishment of a new city-owned treatment works or improvement of an existing city-owned treatment works; (2) Payment of debt service on outstanding sewer revenue bonds; (3) Repayment of an outstanding loan from the State water pollution control revolving fund that was used to construct or improve the sold, leased, or rented city-owned treatment works; or (4) Reimbursement of the federal or State government when the sale or long-term lease or rental to the board of water supply of the city-owned treatment works has violated a term or condition of a federal or State grant that was used to construct or improve the works. For this subsection, “city-owned treatment works” means a publicly owned treatment works, means the lease as defined under § 43-1.2 , that is owned by the city and “long-term lease or rental of a city-owned treatment works” means the lease or rental of all or a portion of a city-owned treatment works that has been approved by the council pursuant to § 28-4.1 . )