PART I.--GOVERNMENT BY MAYOR AND COUNCIL AND GENERAL LAWS
Article 12.--PUBLIC UTILITIES
13-1275.Transfer of ownership and control over certain township water
systems to certain cities; conditions; powers and obligations of city or
board of public utilities.
Whenever 65% or more of the customers of any
publicly owned township water system of any township located, in whole or
in part, within three miles of the limits of any city of the first
class located in the same county as such township have been annexed and
taken into such city and, at the time of such annexation, township water
system revenue bonds have been issued and are outstanding and unpaid in a
total principal amount of
$700,000 or
more, such bonds being a first and prior lien on the earnings and income
derived from the operation of the water system, the control and ownership
of such system shall be transferred to and shall thereupon vest in such
city of the first class and if such city has a board of public utilities,
such system shall be for the use and benefit of such board and for those
persons now or hereafter being served by such system. The board of
public utilities shall be responsible for the maintenance, operation,
improvement and extension of such system. Such city or if the city has a
board of public utilities, then
such board of public utilities shall by resolution obligate itself to pay
and shall assume the entire revenue bonded indebtedness, together with
interest charges and other debt service costs, and all other outstanding
obligations, of any such township water system. Such city or board of
public utilities, as the case may be, shall by resolution further obligate
and commit itself to pay off all such revenue water system bonds as the
same mature and become payable and any interest
due on such revenue bonds and to maintain at all times a sufficient revenue
bond reserve fund, for the payment of both principal and interest on such
bonds, all in strict conformity with the tenor of such revenue bonds and
the resolution of any such township board heretofore adopted
and authorizing the issuance of a series or several series of water system
revenue bonds by any such township board.
Such city or its board of public utilities shall be authorized to
establish such rates for customers residing in any such township outside of
the corporate limits of the city which are fair and equitable and
sufficient to pay the percentage or pro rata amount of the annual revenue
bond and debt service costs, including interest and principal, applicable
to that portion of the utility system lying outside of the corporate limits
of the city. Prior to the date the
interest becomes due on such revenue bonds and prior to the date of
the annual maturity of those revenue bonds which becomes due each
year, such city or its board of public utilities, as
the case may be, shall pay over to the state treasurer a sum equal to and
sufficient to pay the total revenue bond and debt service cost, including
interest and principal.
History: L. 1967, ch. 109, § 1; L. 1983, ch. 49, § 60; May 12.
PART I.--GOVERNMENT BY MAYOR AND COUNCIL AND GENERAL LAWS
Article 12.--PUBLIC UTILITIES
13-1275.Transfer of ownership and control over certain township water
systems to certain cities; conditions; powers and obligations of city or
board of public utilities.
Whenever 65% or more of the customers of any
publicly owned township water system of any township located, in whole or
in part, within three miles of the limits of any city of the first
class located in the same county as such township have been annexed and
taken into such city and, at the time of such annexation, township water
system revenue bonds have been issued and are outstanding and unpaid in a
total principal amount of
$700,000 or
more, such bonds being a first and prior lien on the earnings and income
derived from the operation of the water system, the control and ownership
of such system shall be transferred to and shall thereupon vest in such
city of the first class and if such city has a board of public utilities,
such system shall be for the use and benefit of such board and for those
persons now or hereafter being served by such system. The board of
public utilities shall be responsible for the maintenance, operation,
improvement and extension of such system. Such city or if the city has a
board of public utilities, then
such board of public utilities shall by resolution obligate itself to pay
and shall assume the entire revenue bonded indebtedness, together with
interest charges and other debt service costs, and all other outstanding
obligations, of any such township water system. Such city or board of
public utilities, as the case may be, shall by resolution further obligate
and commit itself to pay off all such revenue water system bonds as the
same mature and become payable and any interest
due on such revenue bonds and to maintain at all times a sufficient revenue
bond reserve fund, for the payment of both principal and interest on such
bonds, all in strict conformity with the tenor of such revenue bonds and
the resolution of any such township board heretofore adopted
and authorizing the issuance of a series or several series of water system
revenue bonds by any such township board.
Such city or its board of public utilities shall be authorized to
establish such rates for customers residing in any such township outside of
the corporate limits of the city which are fair and equitable and
sufficient to pay the percentage or pro rata amount of the annual revenue
bond and debt service costs, including interest and principal, applicable
to that portion of the utility system lying outside of the corporate limits
of the city. Prior to the date the
interest becomes due on such revenue bonds and prior to the date of
the annual maturity of those revenue bonds which becomes due each
year, such city or its board of public utilities, as
the case may be, shall pay over to the state treasurer a sum equal to and
sufficient to pay the total revenue bond and debt service cost, including
interest and principal.
History: L. 1967, ch. 109, § 1; L. 1983, ch. 49, § 60; May 12.
PART I.--GOVERNMENT BY MAYOR AND COUNCIL AND GENERAL LAWS
Article 12.--PUBLIC UTILITIES
13-1275.Transfer of ownership and control over certain township water
systems to certain cities; conditions; powers and obligations of city or
board of public utilities.
Whenever 65% or more of the customers of any
publicly owned township water system of any township located, in whole or
in part, within three miles of the limits of any city of the first
class located in the same county as such township have been annexed and
taken into such city and, at the time of such annexation, township water
system revenue bonds have been issued and are outstanding and unpaid in a
total principal amount of
$700,000 or
more, such bonds being a first and prior lien on the earnings and income
derived from the operation of the water system, the control and ownership
of such system shall be transferred to and shall thereupon vest in such
city of the first class and if such city has a board of public utilities,
such system shall be for the use and benefit of such board and for those
persons now or hereafter being served by such system. The board of
public utilities shall be responsible for the maintenance, operation,
improvement and extension of such system. Such city or if the city has a
board of public utilities, then
such board of public utilities shall by resolution obligate itself to pay
and shall assume the entire revenue bonded indebtedness, together with
interest charges and other debt service costs, and all other outstanding
obligations, of any such township water system. Such city or board of
public utilities, as the case may be, shall by resolution further obligate
and commit itself to pay off all such revenue water system bonds as the
same mature and become payable and any interest
due on such revenue bonds and to maintain at all times a sufficient revenue
bond reserve fund, for the payment of both principal and interest on such
bonds, all in strict conformity with the tenor of such revenue bonds and
the resolution of any such township board heretofore adopted
and authorizing the issuance of a series or several series of water system
revenue bonds by any such township board.
Such city or its board of public utilities shall be authorized to
establish such rates for customers residing in any such township outside of
the corporate limits of the city which are fair and equitable and
sufficient to pay the percentage or pro rata amount of the annual revenue
bond and debt service costs, including interest and principal, applicable
to that portion of the utility system lying outside of the corporate limits
of the city. Prior to the date the
interest becomes due on such revenue bonds and prior to the date of
the annual maturity of those revenue bonds which becomes due each
year, such city or its board of public utilities, as
the case may be, shall pay over to the state treasurer a sum equal to and
sufficient to pay the total revenue bond and debt service cost, including
interest and principal.
History: L. 1967, ch. 109, § 1; L. 1983, ch. 49, § 60; May 12.