(1) Any improvement district within any city or town in the State of Arkansas which is created for the purpose of constructing, repairing, enlarging, and overhauling any electric power plant, waterworks system, or sewer system is authorized to use the profits, or any part thereof, derived from the operation of the plants or systems toward: The payment of the outstanding bonded indebtedness of all street, sewer, or other improvement districts within the limits of the municipality; and
(2) The payment of any obligations of the city or town which may have been incurred by the city or town in the manner provided by law.
(3) The expenditures authorized in this section shall be made as provided for in this subchapter.