Poplar Bluff utility money will not be used to shore up other city finances, the council said Monday in a long-awaited vote to separate ratepayer money from taxpayer expenses.
City council members voted unanimously on a measure that requires all rates and charges collected by Municipal Utilities to be solely reserved for the purpose of providing utility services.
No funds shall be transferred or expended for other purposes, other than as allowed in other provisions of city codes.
The matter has been discussed by city officials and the utility advisory board since 2014.
Utility advisory board members also voted to support the proposal, during an earlier meeting Monday afternoon.
"Ratepayer money stays ratepayer money and taxpayer money stays taxpayer money," said advisory board chairperson Tucker Davis.
This is what the board wanted, he said.
Concerns were first raised after former city manager Heath Kaplan began discussions about combining utility moneys with other city accounts.
At the same time, the utility reported a cash reserve that had dropped to what consultants considered critical levels.
This came years after a $3 million loan from the utility to the city for the creation of a city cable company, which has since been sold. The council voted in 2016 to repay the loan.
The new ordinance would have to be repealed or amended before the city council could access utility money again, city attorney Mark Richardson said.
The council maintains oversight over the utility and its purchases.