A.    A fund entitled cash reserve fund is created in the municipal water utility of the city.

    B.    The municipal water utility of the city is authorized to transfer surplus earnings of such water utility each month hereafter to the cash to the cash reserved fund created in subsection A of this section.

    C.    "Surplus earnings" is defined as those cash earnings remaining after provision has been made to take care of current obligations, including those for operating expenses, depreciation or replacement fund, sinking fund, bond and interest retirement funds or any other priority fund requirements whenever fixed by ordinance or by law.

    D.    Transferring Sums. No transfer to the cash reserve fund, as provided in subsection B of this section, shall be made unless or until there shall accrue in the depreciation or replacement fund of such utility at least five percent of the operating cash revenues each month.

    E.    Making and Repaying Loans — Transferring Funds. The cash reserve fund created in subsection A of this section may be used from time to time to make loans to the sewage disposal works of the city for periods not to exceed five years and at an interest rate not to exceed five percent. The repayment of any such loan and interest shall be returned to and become a part of such cash reserve fund. Such cash reserve fund or any part thereof may also from time to time be transferred to the operating fund or depreciation fund of the municipal water utility at the discretion of the utility service board of the city. (Prior code §§ 7-15 — 7-19)