CA Water Code Section 71671

The revenues from the rates and charges for services and facilities furnished pursuant to this article may be used for the following purposes:

(a)

To pay the operating and maintenance expenses of the facilities.

(b)

To provide a reasonable surplus for improvements, extensions, and enlargements.

(c)

To pay the interest on any bonded debt for the facilities.

(d)

To provide a sinking or other fund for the payment of the principal of such bonded debt as it becomes due.