12-5503.   Same; service agreement; term; service fee; limitations.(a) Subject to provisions contained in this act, amunicipality may enter into a service agreement for a term notto exceed 30 years. However, the service agreement may permit the municipality either toextend or renew the term of the service agreement, so long as themunicipality is not bound under the service agreement for an extended periodor renewal period of more than 30 years. Under the service agreement, themunicipality may:

      (1)   Obligate itself to pay or cause to be paid a service fee for theavailability and use of the capital intensive public service to befurnished under the service agreement;

      (2)   enter into other agreements relating to the services to be providedwhich the municipality considers appropriate and which are not otherwisecontrary to law; and

      (3)   either pledge its full faith and credit or obligate a specific sourceof payment for the payment of the service fee.

      (b)   The obligation of the municipality to pay the service feeunder the service agreementshall not be within any statutory limitation on the bonded indebtedness ofthe municipality.The amount ofmoney to be paid by a municipality pursuant to a service agreement shallnot exceed 5% of the bonded debt limit of the municipality.

      History:   L. 1990, ch. 64, § 3; July 1.