New Jersey § acts:saved-40 - (37)

§ acts:saved-40. (37)

1. In any incorporated town where waterworks have been constructed pursuant to the provisions

of the act to which this act is a supplement, the water commissioners shall use and

apply the moneys received from the water rents or prices paid for the use of water

and interest on arrears of water rents and all other income derived from the said

waterworks, first, for the payment of all expenses of raising and distributing of

water, and salaries, wages and other necessary expenses of operating and maintaining

said waterworks; second, for the payment of the interest upon the debt created for

the construction of the works; third, for the creation of a sinking fund to retire

said bonds at maturity, which sinking fund shall be created and maintained by setting

aside each year a sum sufficient, with accumulations at the rate of three per cent

per annum, compound interest, to pay off and discharge the principal of said water

bonds at maturity. All the remainder of said water rents, interest and income derived from said waterworks

shall be turned over to the governing body of said town, to be used by said governing

body for the extension, protection, operation and maintenance of the said waterworks

or of the sewer system of said town, if any there be, or for the payment of the interest

and principal of the sewer bonds of said town, if any there be.