Ark. Code Ann. § 14-218-127: Operation of plants by city - Use of income

(a) The city in which the consolidated district is located, through its proper officers, shall have full power and authority to operate the consolidated plant and system acquired and improved by the consolidated district instead of the board of improvement of the consolidated district.

(b) The city may supply water, light, and power to private consumers and make and collect proper charges for such service; the gross income derived therefrom shall be first devoted by the city to the payment of operating expenses.

(c) The income derived from the operation after paying operating expenses shall be annually paid by the city to the board of improvement.

(d) So much of the amount so received by the board of improvement as may be necessary for the purpose shall be used by the board of improvement for the maintenance and improvement of the consolidated system. Any balance not so expended may be used by the board of improvement in paying indebtedness theretofore incurred by the consolidated district.

(e) None of the provisions of this section shall apply to any consolidated improvement district or districts consolidated by a special act of the General Assembly.