Disposition of revenue of water division.
Memphis Charter, art. 65, § 692
in effectSec. 692. - Disposition of revenue of water division.
The revenue received each year from the operation of the water division, before being used for any other purpose, shall be used for the following purposes, in the order named, to-wit:
(1) For the payment of all operating expenses of the water division for the year.
(2) For interest accruals and sinking fund accruals on bonds or mortgages issued for the benefit of the water division.
(3) For cash payments to a working capital reserve, a renewals and replacements reserve, and a casualties reserve, for the benefit of the water 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 the payment to the general funds of the municipality a sum not to exceed a cumulative return of three percent (3%) per annum of the equity or investment, if any, of the municipality in the properties of the water 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 select 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.
(5) Any surplus thereafter remaining shall be retained by the board of Light, Gas and Water Commissioners and may be used by them for expansion and enlargement of the water division and/or purchase of bonds that may have been issued and outstanding for the benefit of said division.
(6) Any surplus thereafter 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 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 water system, or on behalf of the water system in conjunction with the gas or electric systems.
(Priv. Acts 1939, ch. 381, § 20)
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_S692DIREWADIFetched: 10/28/2026