Disposition of revenue of gas division.
Memphis Charter, art. 65, § 693
in effectSec. 693. - Disposition of revenue of gas division.
The revenue received each year from the operation of the gas 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 gas division for the year.
(2) For interest accruals and sinking fund accruals on bonds or mortgages issued for the benefit of the gas division.
(3) For cash payments to a working capital reserve, a renewals and replacements reserve, and a casualties reserve, for the benefit of the gas 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 gas 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 gas plant or system and/or for the purpose of outstanding bonds that may have been issued for the benefit of the gas division, as the board of Light, Gas and Water Commissioners may deem advisable.
(6) For the payment to the general fund 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 gas 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.
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 gas division during that year, unless the board of Light, Gas and Water Commissioners shall, by resolution, consent thereto.
(7) 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 gas system, or on behalf of the gas system in conjunction with the electric or water systems.
(Priv. Acts 1939, ch. 381, § 22; Priv. Acts 1945, ch. 18, § 1; Priv. Acts 1947, ch. 491, § 1; Priv. Acts 1959, ch. 224, § 1)
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_S693DIREGADIFetched: 10/28/2026