Subject to any pledges and other contractual limitations appertaining to revenues derived from the operation of any undertaking of a municipality, such revenues may be used from time to time for the following purposes, or any combination thereof, and in such priority, as the governing body may determine:

1. For the payment of operation and maintenance expenses of any undertaking;

2. For the payment of the costs of extensions of and improvements to any undertaking, including without limitation extraordinary repairs and replacements not constituting maintenance expenses;

3. For the payment of any other costs of constructing, otherwise acquiring, operating, maintaining, extending and improving any properties appertaining to water supply, water acquisition, treatment and distribution facilities, sewage, sanitary sewer collection and disposal facilities, storm waters, and storm water collection and disposal facilities, and incidental costs relating thereto, and the payment of any outstanding bonds and any other outstanding securities issued for any one, all or any combination of such purposes by the municipality pursuant to the Water and Sewer Revenue Bond Law or to any other law, and constituting general obligations, special obligations, or otherwise, and regardless of whether such payment is secured solely, additionally, or at all by a pledge of such revenues, as to the principal of, any interest on, and any prior redemption premiums due in connection with, such bonds and other securities, and any paying agent charges and other incidental expenses appertaining thereto, including without limitation any costs of issuing such securities, as the same become due;

4. For the accumulation of reserves for any one, all or any combination of the purposes stated above in this section; and

5. For the payment of any other expenses of the municipality, regardless of whether or not they appertain to an undertaking.

(Added to NRS by 1967, 672)