New Mexico Statutes Chapter 3. Municipalities § 3-23-4. Municipal utility; use of revenue

A. Income derived from the operation of a municipal utility that has funds received from a revenue bond issue shall be used in the following priority:

B. If the municipal utility annually transfers to an interest and sinking fund for the retirement of outstanding revenue bonds an amount equal to one hundred twenty-five percent of the interest and sinking fund requirements for that year, any income in excess of this amount may then be transferred to the general fund of the municipality and expended as the governing body of the municipality directs. When the balance in the interest and sinking fund is equal to the total amount of interest and sinking fund requirements necessary to retire all such outstanding revenue bonds, the annual transfer of income to the sinking fund is not required.