Disposition of revenue of light division.
Memphis Charter, art. 65, § 691
in effectSec. 691. - Disposition of revenue of light division.
The revenue received each year from the operation of the light division, before being used for any other purpose, shall be used for the following purposes, in the order named, to-wit:
(1) The payment of all operating expenses of the light division for the year.
(2) For interest accruals and sinking fund accruals on bonds and mortgages issued for the benefit of the light division.
(3) For cash payments to a working capital reserve, a renewals and replacement reserve, and a casualties reserve, for the benefit of the light division, said cash payments to said reserves to be in such amounts as the Light, Gas and Water Commissioners think proper and by resolution elect to set up from time to time.
(4) For payment to the general funds of the municipality a sum equal in amount to what would be the City taxes on the properties of the light division within the City limits of the City of Memphis if said properties were privately owned.
(5) For payment to a reasonable surplus account which may be used by the board of Light, Gas and Water Commissioners for extensions and improvements to the light plant or system and/or for the purchase of outstanding bonds that may have been issued for the benefit of the light division, as the board of Light, Gas and Water Commissioners may deem advisable.
(6) For payment to the general funds of the municipality a sum not to exceed a cumulative return of six percent (6%) per annum of the equity or investment, if any, of the municipality in the properties of the light division, the said percentage to be fixed by resolution of the Board of Commissioners of the City of Memphis. Should the said percentage as fixed by the Board of Commissioners of the City of Memphis exceed a reasonable figure in the opinion of the board of Light, Gas and Water Commissioners, the amount to be paid by the board of Light, Gas and Water Commissioners to the Board of Commissioners of the City of Memphis shall be determined by a board of arbitration, consisting of one member of the Board of City Commissioners and one member of the board of Light, Gas and Water Commissioners, who shall elect a third member, and the findings of this board of arbitration shall be final and binding on both the Board of City Commissioners and the board of Light, Gas and Water Commissioners.
Provided that in no event shall the aforesaid payment to the municipality for any year exceed one-half of the net profits realized by the light division during that year, unless the board of Light, Gas and Water Commissioners shall, by resolution, consent thereto.
(7) Any surplus then remaining, over and above safe operating margins, shall be devoted solely to rate reduction.
It is further provided that said allotment of funds may be changed in such manner as may be deemed necessary by the board of Light, Gas and Water Commissioners in contracting with the Tennessee Valley Authority for the purchase of power, or as may be deemed necessary by the Board of Commissioners of the City of Memphis, with the approval of the board of Light, Gas and Water Commissioners, in the issuance and sale of any bonds or notes on behalf of the electric system, or on behalf of the electric system in conjunction with the gas or water systems.
(Priv. Acts 1939, ch. 381, § 19)
Source: City of Memphis, Code of Ordinances and Charter and Related Laws (Municode Library, library.municode.com)URL: https://library.municode.com/tn/memphis/codes/charter?nodeId=PTICHRELA_ART65LIGAWADI_S691DIRELIDIFetched: 10/28/2026