12-820a.   City acquiring certain private waterworks property authorizedto reimburse subdivisions for tax loss; exception.Any city of the state which shall acquire from a private owner anywaterworks utility or property serving such city which at the time of suchacquisitions was subject to the levy of ad valorem taxes for city, county,board of education or municipal university purposes shall have power to payannually to such city, county, board of education or municipal university,out of the net revenues accruing to the city from the operation of itswaterworks, an amount not in excess of the ad valorem taxes levied on suchwaterworks property for such city, county, board of education or municipaluniversity in the calendar year preceding the date of the acquisition ofsuch waterworks utility or property by the city: Provided, however,That if any such city shall have outstanding any revenue bonds payable fromthe revenues of the city's waterworks, the city shall not make any suchpayment which will prevent the city from paying when due the principal ofand interest on its water revenue bonds, nor shall such payment be made ifthe making thereof will prevent or interfere with the performance by thecity of any of its obligations under the ordinance authorizing the issuanceof its water revenue bonds.

      History:   L. 1957, ch. 104, § 1; March 30.