(a) The Board of Aldermen shall establish rates to be paid for the use of water supplied by the City water works, which shall be called "service rates." Such service rates shall be a lien in the nature of a tax upon the real estate so supplied with water and shall be collected and enforced under such regulations and ordinances as the Board of Aldermen shall prescribe. Water may be furnished outside the City upon such terms and conditions as shall be prescribed by the Board of Aldermen and furnished solely at the discretion of said Board of Aldermen.

(b) All moneys received in any way on account of the City water works shall be paid into the City Treasury. The City Treasury shall keep accounts, showing fully all receipts and payments had and made in any manner on account of the water works, separately from all other receipts and payments.