§ 10060 Utility Sale Proceeds Use

When a city sells a public utility, the money from the sale must go into the city’s treasury and can only be spent on the things the city said it would use it for when it decided to sell.

Key Takeaways

•Sale money goes straight into the municipal treasury.
•The money can only be used for the purposes listed in the ordinance that called for the sale.
•The city can’t divert the funds to other projects not mentioned in that ordinance.

Example

A town sells its electric company and gets $5 million. The town must put that $5 million into the town’s main bank account and can only spend it on the projects listed in the vote that approved the sale, like building a new library.

The town can’t use the sale money for anything else, like fixing roads, unless the original vote said roads were part of the plan.

The proceeds of the sale of the public utility shall be placed in the municipal treasury and shall be applied exclusively for the purposes and objects mentioned in the ordinance calling the election for the sale of the public utility. (Enacted by Stats. 1951, Ch. 764.)

When a city sells a public utility, the money from the sale must go into the city’s treasury and can only be spent on the things the city said it would use it for when it decided to sell.

Key Takeaways

•Sale money goes straight into the municipal treasury.
•The money can only be used for the purposes listed in the ordinance that called for the sale.
•The city can’t divert the funds to other projects not mentioned in that ordinance.

Example

The town can’t use the sale money for anything else, like fixing roads, unless the original vote said roads were part of the plan.

Key Takeaways

Example

Key Terms

References

§ 10060 Utility Sale Proceeds Use

Key Takeaways

Example

Key Terms

References

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References