(a) The board shall:
(1) prescribe the terms on which water will be furnished;
(2) fix the rate to be paid by users of water from the district; and
(3) make rules and regulations governing the distribution and use of water.
(b) The board shall apply any revenue obtained from the sale of water to operation and maintenance expenses. Any revenue left after paying these expenses shall be used to pay interest on bonds and other indebtedness incurred by the district with the remainder to be placed in the sinking fund.