A. Districts formed pursuant to this act shall be operated without profit, but the rates, revenues, fees, rents or other charges for water or sewage services or facilities, supplies, equipment or other services furnished by the water district shall be sufficient at all times:

1. To pay all operating and maintenance expenses necessary or desirable for the prudent conduct of its affairs and the principal of and interest on the obligations issued or assumed by the district in the performance of the purposes for which it was organized; and

2. For the creation of adequate reserves.

B. The revenues of the district shall be devoted, first, to the payment of operating and maintenance expenses and the principal and interest on outstanding current obligations, and, thereafter, to such reserves for additional improvements, new construction, depreciation and contingencies as the board of directors may from time to time prescribe.

C. Revenues not required for the purposes set forth in subsection B of this section shall be returned from time to time to the customers or public agency members of the district on a pro rata basis, according to the amount of business done with each customer or public agency member during the period for which such return is made, either in cash, in abatement of current charges for water, or otherwise as the board determines; such return may be made by way of a general rate reduction to customers or public agency members if the board so elects.

Added by Laws 1972, c. 249, § 10. Amended by Laws 1985, c. 353, § 6, eff. July 30, 1985.