Section 3-23-4 - Municipal utility; use of revenueA. Income derived from the operation of a municipal utility that has funds received from a revenue bond issue shall be used in the following priority: (1) to maintain the municipal utility in good repair and to pay legitimate expenses of operation; (2) to pay interest on revenue bonds issued for the purpose of acquiring, repairing, improving or enlarging the municipal utility; (3) to create a sinking fund and a reasonable reserve fund as required by the ordinance authorizing the revenue bonds and the law governing their issue; and (4) to pay the cost of improving and extending the municipal utility and the redemption of revenue bonds prior to their maturity if permitted by the ordinance authorizing their issuance. B. If the municipal utility annually transfers to an interest and sinking fund for the retirement of outstanding revenue bonds an amount equal to one hundred twenty-five percent of the interest and sinking fund requirements for that year, any income in excess of this amount may then be transferred to the general fund of the municipality and expended as the governing body of the municipality directs. When the balance in the interest and sinking fund is equal to the total amount of interest and sinking fund requirements necessary to retire all such outstanding revenue bonds, the annual transfer of income to the sinking fund is not required. 1953 Comp., § 14-22-4, enacted by Laws 1965, ch. 300.