12-820a. City acquiring certain private waterworks property authorized to reimburse subdivisions for tax loss; exception.
12-820a
12-820a. City acquiring certain private waterworks property authorized
to reimburse subdivisions for tax loss; exception.
Any city of the state which shall acquire from a private owner any
waterworks utility or property serving such city which at the time of such
acquisitions was subject to the levy of ad valorem taxes for city, county,
board of education or municipal university purposes shall have power to pay
annually to such city, county, board of education or municipal university,
out of the net revenues accruing to the city from the operation of its
waterworks, an amount not in excess of the ad valorem taxes levied on such
waterworks property for such city, county, board of education or municipal
university in the calendar year preceding the date of the acquisition of
such waterworks utility or property by the city: Provided, however,
That if any such city shall have outstanding any revenue bonds payable from
the revenues of the city's waterworks, the city shall not make any such
payment which will prevent the city from paying when due the principal of
and interest on its water revenue bonds, nor shall such payment be made if
the making thereof will prevent or interfere with the performance by the
city of any of its obligations under the ordinance authorizing the issuance
of its water revenue bonds.
History: L. 1957, ch. 104, § 1; March 30.