Section 57. - Acquisition of property Public utilities.

Said City shall have power, within its territorial limits and within fifteen miles from said limits, to construct, condemn, purchase, acquire, lease, improve, add to, maintain and conduct and operate, in whole or in part, waterworks, light plants, telephone systems, power plants, transportation systems, heating plants, incinerating plants, and any other public utility or works or ways local in use, and everything required therefor for the use of said City and the inhabitants thereof. Any such systems, plants, works or ways, or any contracts in relation or connection therewith which may exist and which said City may desire to purchase in whole or in part, may be purchased by proceedings at law or in equity by right of eminent domain, and said City shall have the power to issue bonds upon the vote of the tax paying electors at any special or general election in any amount necessary to carry out any of said powers or purposes, said amount being alone limited by the constitution and the laws of the State of Oklahoma.

Section 58. - Basis for charge of service.

In the operation of any public utility or business owned by the City, if the funds invested therein be the proceeds of the sale of bonds issued by the City, the rate of toll or charges for the commodity and service furnished shall be based on not less than the cost of production of such commodity and service furnished plus three percent per year on the investment; provided, that in determining the cost of such commodity and service, a sufficient deduction must first be made from the annual gross earnings to pay, (1) the annual interest on said bonds; (2) to create a sinking fund sufficient to retire said bonds at maturity; (3) to create depreciation reserve fund sufficient for the maintenance of the plant or plants occasioned by exhaustion, wear and tear of the physical property. It is intended by this Section that the mayor and council and the city manager shall institute and put into effect the system herein described as soon as it may be practicable, and it is the belief of the freeholders that such system should be and can be put into effect gradually and in the course of three to five years the system should be fully installed.

Section 59. - Accounts of municipally owned utilities.

Accounts shall be kept for each public utility owned or operated by the City, distinct from other City accounts and in such manner as to show the true and complete financial result of such City ownership or ownership and operation, including all assets, liabilities, revenues and expenses. Such accounts shall show the actual cost to the City of each public utility owned; the cost of all extensions, additions and improvements; all expenses of maintenance and renewals; the amounts set aside for sinking fund purposes; and, in case of City operation, all operation expenses of every description. The accounts shall show as nearly as possible the value of any service furnished to, or rendered by, any such public utility, by or to any other City or government department. The accounts shall also show proper allowance for depreciation, insurance and interest and the investment and estimates of the amount of taxes that would be chargeable against the property if privately owned. The mayor and council shall annually cause to be made and printed for public distribution a report showing the financial result of such City ownership and operation, which report shall give the information specified in this Section and such other information as the mayor and council shall deem expedient.