In the event that any municipally owned public utility is sold, the proceeds of sale shall be applied as follows:
(a) Such proceeds of sale shall be paid into the Sinking Fund or Bond Retirement Fund to the extent necessary to provide for the retirement of the outstanding indebtedness incurred in the construction or acquisition of such public utility sold.
(b) The balance of such proceeds shall be paid into a special fund for the construction or acquisition of permanent improvements and shall be invested as provided by law. The earnings or interest of such invested proceeds shall be paid into the General Fund or such other funds as Council may, from time to time, direct. The principal of such invested proceeds shall be expended only as may be, from time to time, approved by a majority of the electors of the City on a proposed expenditure from such funds.
(c) Council may, by ordinance, propose expenditure from the special fund for the construction or acquisition of permanent improvements; provided, however, that any such ordinance shall require the submission of such question to the electors of the City under subsection (d) hereof and its approval by a majority of such electors.
(d) Council shall, by ordinance, propose expenditure from such funds upon petition of such of the electors of the City who constitute ten percent of the number of electors who voted for governor at the last regular or general election. The question shall be submitted to the electors in substantially the following form:
"Shall expenditure be made from the invested funds from the sale of (name of public utility or utilities sold) for the purpose of (purpose of proposed expenditure)."
The question shall be submitted to the electors at the next regular or general election if one shall occur not less than sixty, nor more than 120 days after its passage; otherwise, Council, may, upon a majority vote, provide for a special election upon such issue. In the event a majority of the electors voting upon such question approve the proposed expenditure, the proposed expenditure shall be made.
In the event a majority of electors voting upon such question do not approve the proposed expenditure, it shall not be made.
(Ord. 55-69. Passed 10-6-69.)