Allocation of profits to districts and municipality

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  1. (a) After compliance with §§ 14-89-904 and 14-89-905, the remaining profits from the operation of an electric power plant or waterworks system shall be determined by the commissioners of a municipal improvement board.

  2. (b) If the commissioners determine that the remaining profits from the operation of the plant or system, or any part thereof, shall be used for the purposes set forth in § 14-89-903, then the commissioners may, upon the adoption of a proper resolution by the city or town council, allocate to the various improvement districts within the municipality and for other municipal expenses the amounts which are to be appropriated for these purposes.

  3. (c) No part of these profits shall be allocated to any district until the commissioners of the district have furnished proof to the commissioners of the light and water district that bonds and interest of the district which is to receive the allocation of profits will mature during the ensuing year and that the district will not be able to pay the maturities without collecting an assessment against the property of the district.

  4. (d) The allocation to the various districts within the municipalities as prescribed shall be according to the following ratio: The total amount of bond and interest maturities of all street and other improvement districts within the municipality coming due during the particular year, that is, the year following the fiscal year for which the profit of the plant and system was determined, shall be determined, and the ratio which the total bond and interest maturities of any street and other improvement district for the fiscal year bears to the total bond and interest maturities of all the street and other improvement districts for the fiscal year shall be the percentage used to allocate to each street and other improvement district its proportion of the profit to be used for the retirement of the bonded indebtedness of any such district.

  5. (e) The funds allocated to any district under the provisions of this subchapter shall be used exclusively for the purpose of paying bonds and interest of the districts and for no other purpose.


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