Senate Bill 2951

AN ACT TO AMEND SECTIONS 21-27-19, 21-27-57 AND 21-27-61, MISSISSIPPI CODE OF 1972, TO REQUIRE MUNICIPAL UTILITIES TO KEEP ALL UTILITY REVENUES SEPARATE AND APART FROM ANY OTHER FUNDS; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Section 21-27-19, Mississippi Code of 1972, is amended as follows:

21-27-19. The commission shall devote all monies, derived from any source other than the issuance of bonds for purposes authorized by the laws of the State of Mississippi, to or for the payment of all operating expenses, including such items as are normally required of utilities for sales development; to or for the payment of all bonds and interest on outstanding revenue bonds, if any, of such systems; to or for the acquisition and improvement of the system contingencies; to or for the payment of all other obligations incurred in the operation and maintenance of the systems and the furnishing of service; to or for the creation and maintenance of a cash working fund or a surplus fund to be used for replacement, extension of systems and emergencies. Monies received from customers in payment for utility services shall be deposited in a separate account of the public utility, kept separate entirely from other records and accounts of such municipality, and shall not be deposited in the general fund of the municipality. Monies received from customers as a deposit to obtain service or to guarantee the payment of utility bills when due or to guarantee safe return of all property belonging to the utility installed at the customer's location shall be deposited in a separate deposits account maintained by the utility and not commingled with any other funds of the utility or the municipality.

SECTION 2. Section 21-27-57, Mississippi Code of 1972, is amended as follows:

21-27-57. In the authorizing order or ordinance, the governing authorities of the municipality shall set aside monthly and shall pledge the revenues of the system or combined system, in separate and special funds as follows: (1) operation and maintenance fund; (2) depreciation fund; (3) bond and interest fund; (4) contingent fund. A sufficient amount shall be set aside each year for the retirement of the bonds and interest. * * * Surplus revenue remaining shall be * * * kept separate entirely from other records and accounts of the municipality. However, in the segregation into the several funds the governing authorities may prescribe a reasonable excess amount to be placed in the revenue bond and interest fund from time to time during the earlier years of maturity of such bonds so as to thereby provide and produce a cushion fund to meet any possible deficiencies therein in future years. In the event such excess amounts are provided in the earlier years, the same would be available for such purposes. Bonds pursuant to the authority granted in Sections 21-27-23 and 21-27-51, shall be payable solely from revenues of said project and out of the bond and interest fund.

SECTION 3. Section 21-27-61, Mississippi Code of 1972, is amended as follows:

21-27-61. The governing authorities of any municipality shall devote all monies of the system derived from any source other than the issuance of bonds for purposes authorized by the laws of the State of Mississippi, to or for the payment of all operating expenses, including such items as are normally required of utilities for sales development; to or for the payment of all bonds and interest on outstanding revenue bonds, if any, of such system; to or for the acquisition and improvement of the system contingencies; to or for the payment of all other obligations incurred in the operation and maintenance of the system and the furnishing of service; and to or for the creation and maintenance of a cash working fund or a surplus fund to be used for replacement, extension of systems and emergencies. * * * The purpose of any allocation or expenditure of money made pursuant to this section shall be spread upon the minutes of the municipal governing authorities.

SECTION 4. This act shall take effect and be in force from and after July 1, 2005.