Busan Metropolitan City Ordinance on the Establishment of the Sewerage Business : City Government

Article 1 (Purpose)
The purpose of this Ordinance is to establish the Busan Metropolitan City sewage business under Article 5 of the Local Public Enterprises Act for contributing the sound development of sewage administration and the enhancement of public hygiene and preserving the quality of public waters and to prescribe necessary matters for the organization and operation of this business.

Article 2 (Range of Business)
The range of the Busan Metropolitan City sewage business (hereinafter referred to as the “sewage business”) shall be as follows:
- 1. Public sewerage business; and
- 2. Other businesses similar to the public sewerage business

Article 3 (Manager)
There shall be one manager, who is the director general for environment in charge of the sewerage business, to manage and implement the tasks of the sewerage business.

Article 4 (Management Regulations of Enterprise)
The manager shall obtain approval from the Mayor of the Busan Metropolitan City(hereinafter referred to as the “Mayor”) to establish management regulations of the enterprise under Article 11 of the Local Public Enterprises Act(hereinafter referred to as the “Act”).

Article 5 (Establishment of Special Account) (1) The Mayor shall establish the Busan Metropolitan City Sewerage Business Special Account(hereinafter referred to as the “sewerage business special account”) under Article 13 of the Act.
(2) Businesses under each subparagraph of Article 2 shall be combined to the sewerage business special account.

Article 6 (Contribution) (1) In a case falling under any of the following subparagraphs, general accounts or special accounts may contribute to the sewerage business special account:
- 1. In a case of the establishment of business;
- 2. In a case of prior investment for regional development; or
- 3. In a case of short-term intensive grand expansion project.
(2) If the sewerage business account receives the contribution under the subparagraphs of paragraph (1), it shall be calculated and arranged into the investments of general accounts or special accounts.
(3) In a case where assets or profits are obtained due to the contribution under paragraphs (2), profits may be paid to general accounts or special accounts that contributed to the sewerage business account under Article 17 (2) of the Act or be accumulated into the contribution account.
(4) The amount of money paid or accumulated under paragraph (3) shall be as follows: (not more than a tenth of the profits of the current year) × (the contribution calculated and arranged under paragraph (3)) ÷ (the total amount of the capital of the sewerage business)

Article 7 (Financial Support)
In a special case including emergency disaster, general accounts or special accounts may gratuitously provide financial support to the sewerage business special account.

Article 8 (Municipal Bonds) (1) Municipal bonds under Article 19 of the Act shall be issued by the Mayor at the cost of the sewerage business special account. In this case, if necessary, general accounts or special accounts may guarantee the payment of the principal and interest.
(2) In a case where the payment of the principal and interest of municipal bonds is guaranteed under latter part of paragraph (1), the name of sewerage business special account and the name of account that guarantees it shall be indicated.

Article 9 (Expenditures for Earning Revenue)
In a case falling under any of the following subparagraphs, expenditures for earning revenues under Article 27 of the Act may be possible:
- 1. In case there is no balance left in expense item budget and no other budget left;
- 2. In case there is no time to spare for submitting to the Busan Metropolitan City Council; and
- 3. In case it is certain that a business expenditure will return a profit in the same business year the expenditure is allocated.

Article 10 (Disposal of Surplus) (1) The remaining balance after covering the loss of the previous year shall be distributed in order of the following subparagraphs:
- 1. Reserve of the profit reserve fund under Article 37 (1) of the Act and Article 37 of the Enforcement Decree of the Local Public Enterprises Act;
- 2. Reserve of sinking-fund reserve, an amount equivalent to repayment of the next year in case there are unamortized local bonds;
- 3. Payment or reserve under Article 6 (4) if there is a balance after the disposal under subparagraph 1 and 2; and
- 4. Reserve of eight tenths of the balance as the construction improvement reserve if there is a balance remaining after disposal under subparagraph 1 to 3 and disposal of the balance remaining as the not-appropriated earned surplus.

Article 11 (Establishment of Revolving Fund) (1) The Mayor may establish a revolving fund under Article 46 (1) of the Act and may operate the public sewerage prescribed in the Sewerage Act with this fund.
(2) A person in charge of management of the revolving fund under paragraph (1) shall be the manager of the sewerage business.

Article 12 (Submission and Publication of Explanatory Note of Job Situation) (1) Under Article 46 (1) of the Act, the manager shall submit the following documents that explain the work situation of the sewerage business by August 31 of the year for those of January 1 to Jun 30 and by February 28 of the next year for those of July 1 to December 31 each business year:
- 1. Documents concerning the current status of business;
- 2. Documents concerning the accounting and financial statements of the business (only the trial balance, budget and the report of funds operation for January 1 to Jun 30); and
- 3. Documents necessary for clarifying the management of the sewerage business other than subparagraph 1 and 2.
(2) If the manager submits the documents under paragraph (1), the Mayor shall pronounce it through the Busan City Official Gazette and the Busan Metropolitan City Internet homepage.

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