Surplus applied to other municipal or public purposes.
If any surplus, as defined in
§ 9-40-30, remains in the operation and maintenance fund upon the expiration of any fiscal year, and
the governing body determines that such surplus is not needed for the maintenance of the
depreciation account, said surplus may be transferred to any other fund of the municipality in
accordance with the provisions of § 9-21-26.1, and may be used for any proper municipal purpose
as directed by the governing body, or may be transferred to a public school district as provided in
§ 9-21-28, or a hospital corporation as provided in chapter 34-9; provided that all such surplus funds
on hand at any time prior to such transfer shall be available and shall be used to such extent as may
be required for the payment of principal and interest on any outstanding revenue bonds, if other net
revenues of the utility are insufficient for such purpose, and no such transfer shall at any time be
made in contravention of any covenant of the municipality contained in the ordinances of resolutions
authorizing said bonds.
Source: SDC 1939, § 45.2410 as added by SL 1953, ch 265.