(a) Any city or incorporated town in the State of Arkansas may purchase or construct a waterworks system, or construct betterments and improvements to its waterworks system, or to a system owned by a waterworks district and operated by the city or town, as provided in this subchapter.
(b) Any city operating a waterworks system owned, constructed, or acquired by a waterworks district is authorized to use the revenue derived from operating the waterworks system in paying revenue bonds and the interest on the bonds issued under and pursuant to the terms of this subchapter, and, for that purpose may create a sinking fund, and other items prescribed by this subchapter, operating expenses, and maintenance and improvement of the existing system owned by the district. The balance of the revenue remaining shall be paid by the city to the district to be used in retiring obligations of the district.
Structure Arkansas Code
Subtitle 14 - Solid Waste Disposal, Waterworks, And Sewers Generally
Chapter 234 - Waterworks and Water Supply
Subchapter 2 - Purchase and Construction
§ 14-234-203. Authority of municipalities
§ 14-234-204. Authority of cities and towns — Use of revenues
§ 14-234-205. Ordinance for issuance of bonds — Contents
§ 14-234-207. Bonds — Amount — Negotiability — Execution — Sale
§ 14-234-208. Lien in favor of bondholders — Enforcement — Appointment of receiver upon default
§ 14-234-209. Accounts — Audit — Treasurer as custodian of fund — Fund separated from city funds
§ 14-234-210. Allocation of specific portion of issue of bonds to particular project
§ 14-234-211. Acceleration of maturities — Priorities between bond issues — Execution of indenture
§ 14-234-212. Issuance of bonds to construct improvements
§ 14-234-213. Exchange of unpaid water revenue certificates for refunding bonds
§ 14-234-214. Rates — Disposition of surplus funds