MISSISSIPPI LEGISLATURE
2015 Regular Session
To: Local and Private Legislation
By: Representative Calhoun
AN ACT TO AUTHORIZE THE BOARD OF SUPERVISORS OF HINDS COUNTY, MISSISSIPPI, TO CREATE THE HINDS COUNTY UTILITY AUTHORITY; TO PROVIDE THAT THE AUTHORITY SHALL BE GOVERNED BY A BOARD OF DIRECTORS; TO PROVIDE FOR THE MEMBERSHIP OF THE BOARD OF DIRECTORS; TO PROVIDE FOR THE POWERS AND DUTIES OF THE AUTHORITY; TO AUTHORIZE THE AUTHORITY TO ACQUIRE, CONSTRUCT, MAINTAIN, OPERATE, EXPAND AND/OR DECOMMISSION WATER SYSTEMS AND/OR WASTEWATER SYSTEMS WITHIN THE DESIGNATED AREA OF HINDS COUNTY; TO AUTHORIZE POLITICAL SUBDIVISIONS AND/OR OTHER PERSONS THAT PROVIDE WATER AND/OR WASTEWATER SERVICES TO CONTRACT WITH THE AUTHORITY; TO AUTHORIZE THE HINDS COUNTY UTILITY AUTHORITY TO ISSUE REVENUE BONDS TO PROVIDE FUNDS NECESSARY TO ACHIEVE THE PURPOSES OF THIS ACT; TO AUTHORIZE THE HINDS COUNTY UTILITY AUTHORITY, WITH THE APPROVAL OF THE AFFECTED POLITICAL SUBDIVISIONS AND/OR PERSONS PROVIDING WATER, AND/OR WASTEWATER TO ENTER INTO CONTRACTS WITH THE OWNERS OF PROPERTY TO PROVIDE IMPROVEMENTS NECESSARY TO PROVIDE SERVICES RELATED TO WATER AND/OR WASTEWATER; TO AUTHORIZE THE AUTHORITY TO REQUEST THAT THE BOARD OF SUPERVISORS OF HINDS COUNTY OR ANY POLITICAL SUBDIVISION UTILIZE EMINENT DOMAIN ON BEHALF OF THE AUTHORITY; TO PROVIDE THAT THE AUTHORITY MAY ISSUE SPECIAL ASSESSMENT BONDS TO FINANCE SUCH IMPROVEMENTS AND TO AUTHORIZE THE AUTHORITY TO LEVY AND COLLECT SPECIAL ASSESSMENTS AGAINST THE PROPERTY BENEFITED THEREBY TO RETIRE SUCH BONDS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. This act may be cited as the "Hinds County Utility Authority Act."
SECTION 2. The purpose of this act is to authorize a cooperative effort among any areas situated within the Designated Area of Hinds County for which services can reasonably be provided and which either (a) request to be included or (b) have no existing services, including the areas situated within the corporate boundaries of any existing municipality and other eligible municipalities, public agencies and political subdivisions, for the acquisition, construction and operation of one or more systems for the collection, transportation, treatment and disposal of wastewater; and/or for the treatment and distribution of potable water; all of the foregoing, including sewerage systems, sewage disposal systems, waterworks and water supply systems, in order to ensure an adequate supply of water for domestic, commercial and industrial uses and to prevent and control the pollution of the lands and waters in this state by the creation of the Hinds County Utility Authority.
SECTION 3. As used
in this act:
(a) "Act" means the Hinds County Utility Authority Act, as
amended from time to time.
(b) "Authority" means the Hinds County Utility Authority created under this act to serve Hinds County, Mississippi, or a designated portion thereof, as set forth in this act and any resolution creating or expanding the authority.
(c) "Board of
directors" means the Board of Directors of the Hinds County Utility
Authority.
(d) "Corridor" means the 18-mile corridor proposed as a
multi-lane route between Siwell Road in Byram at Interstate 55 South, extending
northwest to the Norrell Road interchange at Interstate 20 in Clinton.
(e) "Bonds" means revenue bonds and interim notes having a maturity of three (3) years or less, and other certificates of indebtedness of the authority issued under the provisions of this act.
(f) "Costs of the project" means:
(i) All costs of site preparation and other start-up costs;
(ii) All costs of construction;
(iii) All costs of real and personal property required for the purposes of the project and facilities related thereto, including land and any rights or undivided interest therein, easements, franchises, fees, utility charges, permits, approvals, licenses and certificates and the securing of any permits, approvals, licenses and certificates and all machinery and equipment, including motor vehicles, which are used for project functions;
(iv) All costs of engineering, geotechnical, architectural and legal services;
(v) All costs of plans and specifications and all expenses necessary or incident to determining the feasibility or practicability of the project;
(vi) Administrative expenses; and
(vii) Any other expenses as may be necessary or incidental to the project formation and financing.
(g) "Designated Area" means the area occupied by the Corridor and all area within a one (1) mile radius around the Corridor.
(h) "Facilities" means any structure, building, ditch, pipe, channel, improvement, land or other real or personal property used or useful in a water and/or wastewater system under this act.
(i) "Hinds County wastewater plan" means a comprehensive plan for wastewater systems within the Hinds County area, consistent with standards established pursuant to applicable federal and state laws and regulations.
(j) "Members" mean the members of the authority which include ___________________________ and any political subdivision which is located, in whole or in part, within the Designated Area of Hinds County and elects to become a constituent member of the Hinds County Utility Authority upon its organization or which subsequently elects to become a member of the Hinds County Utility Authority, and which is admitted to the authority by affirmative vote of the board of directors of such authority, in accordance with the provisions of Section 5 of this act.
(k) "Municipality" means any incorporated city, town, or village of the State of Mississippi, whether operating under general law or under special charter, lying wholly or partly within the Designated Area of Hinds County, Mississippi.
(l) "Person" means and includes the State of Mississippi, a municipality as defined herein, any public agency as defined herein or any other city, town or political subdivision or governmental agency of the State of Mississippi or of the United States of America, or any private utility, individual (other than an individual residential water/wastewater customer), co-partnership, association, firm, trust, estate or any other entity whatsoever.
(m) "Point of delivery" means the point where control of wastewater and/or water passes from a political subdivision and/or provider to the authority. A "point of delivery" generally will be a metering station where flow from a provider's collection system is discharged into the authority's transportation (trunk main) system.
(n) "Political subdivision" means any body politic or body corporate other than the state responsible for governmental activities only in geographic areas smaller than that of the state, including, but not limited to, any county, municipality, school district, charter school, volunteer fire department that is a chartered nonprofit corporation providing emergency services under contract with a county or municipality, community hospital as defined in Section 41-13-10, Mississippi Code of 1972, airport authority, or other instrumentality of the state, whether or not the body or instrumentality has the authority to levy taxes or to sue or be sued in its own name.
(o)
"Pollution" shall have the meaning as set forth in the Mississippi
Air and Water Pollution Control Law, as now or hereafter amended, appearing as
Sections 49-17-1 through 49-17-70, Mississippi Code of 1972.
(p) "Sewerage system" means pipelines or conduits, canals,
pumping stations and force mains, and all other structures, devices, facilities
and appliances appurtenant thereto, used for collecting or conducting waste to
an ultimate point for treatment or disposal.
(q) "System" means any or all of the following: sewerage system, and water supply system and all vehicles, structures, devices, facilities and appliances used for treatment or distribution of potable water or for collecting waste or sewage to an ultimate point for treatment or disposal.
(r) "Treatment facilities" means any plant, disposal field, lagoon, pumping station, drainage ditch or surface water intercepting ditch, canal, or other works not specifically mentioned herein, installed for the purpose of treating, neutralizing, stabilizing or disposing of wastewater, or sludge or facilities to provide cooling water to collect, control, and dispose of waste heat.
(s) "Waste" means sewage, industrial waste, municipal waste, recreational waste and agricultural waste, waste heat, and any other waste that may cause impairment of the quality of the lands and/or waters in the state.
(t) "Waste disposal system" means a system for disposing of waste, including, but not limited to, sewerage systems and treatment facilities, as such terms are defined herein.
(u) "Wastewater" means water being disposed of by any person and which is contaminated with waste or sewage, including residential, industrial, municipal, recreational and any other wastewater that may cause impairment of the quality of the waters of the state.
(v) "Wastewater and/or water services provider" or "provider" means any person that provides wastewater and/or water services or a nonprofit association or other public utility that holds a certificate of public convenience and necessity for wastewater and/or water service from the Mississippi Public Service Commission.
(w) "Wastewater system" means a system for transporting, transferring, treating and disposing of wastewater, including, but not limited to, transportation systems and treatment facilities, as these terms are defined in this act.
(x) "Waters of the State" shall have the meaning as set forth in the Mississippi Air and Water Pollution Control Law, as now or hereafter amended, appearing as Sections 49-17-1 through 49-17-70, Mississippi Code of 1972.
(y) "Water system" means waterworks, pipelines, conduits, pumping stations and all other structures, devices and appliances appurtenant thereto, including land and rights-of-way thereto, for use for transporting water to a point of ultimate use.
(z) "Waterworks" means all works, plants or other facilities necessary for the purpose of collecting, storing, treating and transporting water for domestic, municipal, commercial, industrial, agricultural and manufacturing purposes, including open channels.
Words of the masculine gender shall be deemed and construed to include correlative words of the feminine and neuter genders. Unless the context shall otherwise indicate, words and terms herein defined shall be equally applicable to the plural as well as the singular form of any such words and terms.
SECTION 4. (1) (a)
Prior to the establishment of the authority, the Board of Supervisors of Hinds
County must adopt a resolution proposing the establishment of the authority.
(b) The resolution shall include the following:
(i) A statement of the necessity for the service or services to be supplied by the proposed authority;
(ii) The proposed corporate name for the authority;
(iii) The proposed boundaries of the authority, which shall be located in the Designated Area of Hinds County, Mississippi;
(iv) An estimate
of the cost of the acquisition or construction of the facilities to be operated
by the authority with disclosure that the estimate shall not serve as a
limitation upon the financing of the creation, operation, improving upon or
extending of the authority.
(2) Upon the approval of the Board of Supervisors of Hinds County of the
appropriate resolution, the Board of Supervisors of Hinds County shall fix a
time and place for a public hearing upon the question of the public convenience
and necessity of the incorporation of the proposed authority. The hearing
shall not be more than forty-five (45) days after the approval of the
resolution. The date of the hearing, the place at which it shall be held, the
proposed boundaries of the authority, and the purpose of the hearing, shall be
set forth in a notice to be signed by the clerk of the Board of Supervisors of
Hinds County to be published in a newspaper having general circulation in the
county once a week for at least three (3) consecutive weeks before the date set
forth for the hearing. The first such publication shall be made not less than
twenty-one (21) days before the date of such hearing and the last publication
shall be made not more than seven (7) days before the date of such hearing.
(3) After the public hearing, should the Board of Supervisors of Hinds County determine that the public convenience and necessity require the creation of the authority, and that the creation of the authority is economically sound and desirable, the Board of Supervisors of Hinds County shall adopt a resolution making the aforesaid findings and declaring its intention to create the authority on a date to be specified and designating the name of the proposed authority and its boundaries.
(4) A certified copy of the resolution as adopted by the Board of Supervisors of Hinds County shall be published in a newspaper having a general circulation within Hinds County once a week for at least three (3) consecutive weeks before the date specified in such resolution as the date upon which such Hinds County Board of Supervisors intends to create the authority. The first such publication shall be made not less than twenty-one (21) days before the date specified, and the last such publication shall be made not more than seven (7) days before such date.
(5) When so organized, the authority shall have the power to sue and be sued, provided that the authority shall not be liable and shall be immune from suit at law or in equity on account of any wrongful or tortuous act or omission, including libel, slander or defamation, by it, or any such act or omission by any employee of the authority, subject to and in accordance with the provisions of Sections 11-46-1 through 11-46-19, Mississippi Code of 1972.
SECTION 5. (1) (a) Only a political subdivision as defined herein may be a member of the authority. All powers of the authority shall be exercised by a board of directors to be selected and composed as follows: the governing body of each member that handles an average of ____ gallons of wastewater or water per day, as determined by the fiscal year preceding the date of selection of directors, shall appoint one (1) person qualified to serve as director to the Board. Qualified to serve means a person must (i) be a Mississippi Registered Professional Engineer (P.E.) and have three (3) years of experience in wastewater collection, treatment and disposal or treatment and distribution of potable water; or (ii) have a bachelor's degree in engineering, biological sciences, mathematics, chemistry or physics from an accredited college or university and at least five (5) years of experience in wastewater collection, treatment and disposal or treatment and distribution of potable water; or (iii) have a graduation certificate from an accredited high school or equivalent general education development (G.E.D.), hold a Class III wastewater operator's certificate, and have a minimum of ten (10) years of experience in wastewater collection, treatment and disposal or treatment and distribution of potable water.
(b) If any appointing political subdivision, other than the Board of Supervisors of Hinds County, shall cease to provide wastewater services or water services for a period of more than six (6) consecutive months, the member appointed by such political subdivision shall be removed from the board at the next regularly scheduled board meeting after the end of the six (6) consecutive month period of the member's cessation of services, and the political subdivision shall no longer be represented on the board. The board shall determine the facts requiring removal and shall remove the member by action of the board. Removal of a board member under this paragraph shall not affect any contracts previously entered into by the board.
(2) In the inaugural year, each director shall serve at the will and pleasure of the appointing political subdivision for a term of either two (2) years or four (4) years as determined by the appointing political subdivision's amount of wastewater flowage during the preceding fiscal year as expressed in millions of gallons per day (MGD). Directors appointed by the two (2) members with the largest wastewater flowage during the preceding fiscal year shall serve 4 years and all other directors shall serve two (2) years. Thereafter, any director appointed shall serve for a term of four (4) years at the will and pleasure of the appointing political subdivision. Any vacancy arising before the expiration of a director's term, or a vacancy created by the removal of a director for any other reason, shall be filled in the same manner as the appointment process after the inaugural year.
(3) Notwithstanding the appointive authority herein granted to the Board of Supervisors of Hinds County, its legal and actual responsibilities, authority and function, subsequent to the creation of the authority, shall be specifically limited to such appointive function and responsibilities.
(4) The operation, management, abolition, or dissolution of the authority, and all such other matters in connection therewith, shall be vested solely and only in the board of directors, and the operation, management, abolition, or dissolution of the authority shall be accomplished only by the board of directors.
(5) The board of directors of the authority shall elect annually from its membership a president and vice president of the authority and such other officers as, in the judgment of the board, are necessary. The president shall be the chief executive officer of the authority and the presiding officer of the board, and shall have the same right to vote as any other director. The vice president shall perform all duties and exercise all powers conferred by this action upon the president when the president is absent or fails or declines to act, except the president's right to vote. The board also shall appoint a secretary and a treasurer who may or may not be members of the board, and it may combine those offices. The treasurer shall give bond in the sum of not less than Fifty Thousand Dollars ($50,000.00) as set by the board of directors, and each director may be required to give bond in the sum of not less than Ten Thousand Dollars ($10,000.00), with sureties qualified to do business in this state. The premiums on such bonds shall be an expense of the authority. Such bonds shall be payable to the State of Mississippi. The bonds shall be conditioned upon the treasurer or director faithfully performing all duties of his office and accounting for all money or other assets which shall come into his custody as treasurer or director of the authority.
(6) The members of the board of directors of the authority shall serve without salary, but shall be entitled to receive a per diem in the amount provided for in Section 25-3-69, Mississippi Code of 1972. They shall be reimbursed their actual travel and hotel expenses as provided in Section 25-3-41, Mississippi Code of 1972, incurred while in the performance of their duties as members of the board of directors of the authority. Expenses shall be paid from the available funds of the authority.
(7) In order to maintain an odd number of directors on the board, the board of directors of the authority may increase the number of directors for the authority by having the political subdivision with the largest amount of wastewater flowage during the preceding fiscal year as expressed in millions of gallons per day (MGD) appoint an additional director who meets the qualifications set forth in Section 5(1)(a).
SECTION 6. (1) Except for the election or appointment of officers, all business of the authority shall be transacted by vote of the board of directors.
(2) All business of the authority shall be transacted by a simple majority affirmative vote of the total membership of the board of directors and by a concurrent vote of the directors representing sixty percent (60%) of the total wastewater flowage as expressed in million gallons daily (MGD) for use of the wastewater system of the authority during the preceding fiscal year. The quorum for any meeting of the board of directors shall be a simple majority of the total membership of the board of directors. A determination as to flowage expressed in MGD shall be made for voting purposes on or before December 31 each year for use in the succeeding year. Upon admission of a new member, the authority and the new member are each authorized to enter into agreements with the other setting out the responsibilities and obligations of both the authority and the member and setting forth the terms and conditions of the business to be conducted between them.
Should a member of the authority make a cash capital contribution or contribution in kind to the authority in anticipation of capacity or flowage, the board member representing such member shall be entitled to have such contributions converted to flowage as expressed in MGD for voting purposes. Such voting entitlement shall exist until such time as flowage or capacity is realized or depreciated out according to normal accounting procedures.
SECTION 7. The authority is authorized and empowered to acquire wastewater and/or water lines and to acquire, construct, improve, enlarge, extend, repair, operate and maintain one or more of such wastewater and/or water systems and to make contracts with any person in furtherance thereof, and to make contracts with any person (except an individual residential customer), under the terms of which the authority will collect, transport, treat and dispose of wastewater, and/or treat and distribute potable water. The authority may enter into contracts with any person (except an individual residential customer) to design and construct any wastewater and/or water system, and thereafter purchase, lease, lease-purchase, or sell, by installments over such terms as may be deemed desirable, reasonable and necessary, or otherwise, any such wastewater and/or water system or systems. The authority is authorized to enter into operating agreements with any person, for such terms and upon such conditions as may be deemed desirable, for the operation of any wastewater and/or water facilities or systems; and the authority may lease to or from any person, for such term and upon such conditions as may be deemed desirable, any wastewater and/or water facilities or systems. Any such contract may contain provisions requiring any person to regulate the quality of water and the quality and strength of waste to be handled by the system or systems and may also provide that the authority shall have the right to use any streets, alleys and public ways and places within the jurisdiction of a political subdivision during the term of the contract. Any provision of this act to the contrary notwithstanding, the authority shall not become the owner of any existing sewage disposal system unless all municipalities or other political subdivisions currently utilizing such system or any portion thereof are offered access to such sewage disposal system.
SECTION 8. (1) The authority is hereby authorized and empowered to enter into lease agreements with any corporation, partnership, limited partnership, joint venture or individual under which the authority may agree to lease buildings, facilities and/or machinery and equipment for use in connection with the provisions of wastewater and/or water services under this act. For the purposes of this section, the term machinery and equipment shall not include office furniture and/or office machines. The primary term of a lease for machinery and equipment shall not exceed the estimated useful economic life of such machinery and equipment, as such useful economic life is mutually agreed upon by the lessor and lessee.
(2) Such leases may contain an option granting to the authority the right to purchase the lease property upon the expiration of the primary term, or upon such earlier date as may be agreed upon at a price not to exceed the unpaid principal balance at such time.
(3) The authority is authorized to lease real property owned by it to any corporation, partnership, limited partnership, joint venture or individual for the purpose of enabling such person to construct or renovate thereon any of the buildings or facilities described in subsection (1) of this section and to lease such buildings and facilities to the authority.
(4) Subject to the provisions of this section, any such lease agreement may extend over any period, notwithstanding any provision or rule of law to the contrary, and any such lease agreement shall be binding upon the authority and any other party thereto in accordance with its terms. Any such lease agreement may include, at the discretion of the authority, a pledge of the full faith and credit of the authority for the payment of its monetary obligations thereunder; or may contain a provision that so long as no default of any monetary obligation of the lessee has occurred, the lessee's obligation to pay any amounts due or perform any covenants requiring or resulting in the expenditure of money shall be contingent and expressly limited to the extent of any specific appropriation made by the authority to fund such lease agreement, and that nothing contained in the lease agreement shall be construed as creating any monetary obligation on the part of the lessee beyond such current and specific appropriation.
(5) This section, without reference to any other statute, shall be deemed to be full and complete authority for the authorization, execution and delivery of lease agreements authorized hereunder, and shall be construed as an additional and alternative method therefor, and none of the present restrictions, requirements, conditions and limitations of law applicable to the acquisition, construction and drawing of buildings, facilities, machinery or equipment in this state shall apply to lease agreements under this section, and no proceedings shall be required for the authorization, execution and delivery of such leases other than those required herein, and all powers necessary to be exercised in order to carry out the provisions of this section are hereby conferred.
SECTION 9. (1) The authority, through its board of directors, in addition to any and all powers now or hereafter granted to it, is hereby empowered:
(a) To develop and maintain long-range planning for collection, treatment and distribution of water and for the collection, transportation, treatment and disposal of wastewater.
(b) To adopt and issue a certificate of convenience and necessity to use the power of eminent domain in the acquisition of real property. Upon the adoption of such certificate of convenience and necessity, which shall state the description of the real property needed to be acquired by eminent domain, the authority shall transmit a copy of the certificate to the Board of Supervisors of Hinds County, to the governing authorities of any public entity with the power of eminent domain or to any other entity with the power of eminent domain. The board or entities may initiate proceedings under the provisions of Title 11, Chapter 27, Mississippi Code of 1972, on behalf of the authority to carry out the purposes set forth in the certificate. The eminent domain proceedings thereby initiated shall be conducted according to and governed by the provisions of Title 11, Chapter 27, Mississippi Code of 1972.
(c) To acquire and to own, maintain, use, operate and convey or otherwise dispose of any and all property of any kind, real, personal or mixed, or any interest therein within or without the boundaries of its Designated Area necessary or convenient unless any of the foregoing is otherwise prohibited under the Mississippi Constitution, by law or this act. The amount and character of interest in land, other property, and easements thus to be acquired shall be determined by the board of directors, and their determination shall be conclusive and shall not be subject to attack in the absence of manifold abuse of discretion or fraud on the part of such board in making such determination. However, (i) in acquiring lands, the authority shall not acquire minerals or royalties; provided that sand and gravel shall not be considered as minerals within the meaning of this section; and (ii) no person or persons owning the drilling rights or the right to share in production shall be prevented from exploring, developing or producing oil or gas with necessary rights-of-way for ingress and egress, pipelines and other means of transporting interests on any land or interest thereof of the authority held or used for the purposes of this act; but any such activities shall be under such reasonable regulations by the board of directors as will adequately protect the water and/or wastewater systems of the authority contemplated by this act.
(d) To provide for the necessary relocation or rerouting of roads and highways, railroad, telephone and telegraph lines and properties, electric power lines, gas pipelines and related facilities, or to require the anchoring or other protection of any of these, provided due compensation is first paid to the owners thereof or agreement is had with such owners regarding the payment of the cost of such relocation, and to acquire easements or rights-of-way for such relocation or rerouting and to convey the same to the owners of the property being relocated or rerouted in connection with the purpose of this act.
(e) To enter into contracts with any person (except individual residential customers), including, but not limited to, contracts authorized by Section 7 of this act, in furtherance of any of the purposes authorized by this act upon such consideration as the board of directors and such person may agree. Any such contract may extend over any period of time, notwithstanding any provision or rule of law to the contrary; may be upon such terms as the parties thereto shall agree; and may provide that it shall continue in effect until bonds specified therein, refunding bonds issued in lieu of such bonds, and all other obligations specified therein are paid or terminated. Any such contract shall be binding upon the parties thereto according to its terms.
(f) To make and enforce, and from time to time amend and repeal, bylaws and rules and regulations for the management of its business and affairs and for the construction, use, maintenance, operation and decommission of only those water and/or wastewater systems under its management and control and any other of its properties.
(g) To employ staff and other personnel, including attorneys, engineers and consultants. The board of directors may, in its discretion, employ a general manager having the authority to employ and fire employees of the authority.
(h) To apply for, accept and utilize grants and other funds from any source for any purpose associated with the authority.
(i) To establish and maintain rates and charges for the use of the services of such water and/or wastewater systems, and from time to time to adjust such rates, to the end that revenues therefrom will be sufficient at all times to pay the expenses of establishing, operating, maintaining, expanding and/or decommissioning only those water and/or wastewater systems under the authority's control and the authority's obligations under any contract or bond resolution with respect thereto.
(j) To adopt rules and regulations necessary to carry out the implementation of any plan of the authority and to assure the payment of each participating political subdivision of its proportionate share of system costs.
(k) To refuse to receive wastewater from any political subdivision or provider that does not comply with the provisions of any plan of the authority and/or Hinds County applicable to the particular area within which such political subdivision or provider is located.
(1) To accept industrial wastewater for treatment and to require the pretreatment of same when in the opinion of the authority such pretreatment is necessary.
(m) To adopt all necessary and reasonable rules and regulations to carry out and effectuate any water supply or wastewater treatment adopted for the area, as contractually authorized.
(n) So long as any indebtedness on any sewerage system, treatment facilities and sewage disposal system of the authority remains outstanding, to require by contract with a person (except an individual residential customer) that all wastewater within the authority's area be disposed of through sewerage systems, treatment facilities and sewage disposal systems which comprise a part of the authority's area plan, to the extent that the same may be available, but no political subdivision shall be precluded from constructing, operating and maintaining its own sewerage system after the current indebtedness owing on the system as of the effective date of this act is paid in full.
(2) The authority shall not make contracts for wastewater transportation and treatment services and/or water services with any individual residential customers. The authority shall not provide wastewater collection, transportation or treatment services and/or water services directly to any customer but rather shall operate through the retail wastewater and/or water service providers. The authority shall not make rules or regulations affecting the wastewater collection systems, transportation systems, or water systems, or treatment systems of retail wastewater and/or water service providers except to the extent of regulating by contract with the providers the quantity and strength of wastewater and/or water delivered to the authority.
(3) Notwithstanding any provision of this act to the contrary, the authority shall not be allowed to (a) invade or condemn the exclusive service area of any retail wastewater and/or water provider, or (b) curtail the activities of a retail wastewater and/or water service provider.
SECTION 10. (1) Any political subdivision may, pursuant to a duly adopted resolution of such governing authority of such political subdivision, enter into contracts with the authority under the terms of which the authority will collect, transport, treat and dispose of wastewater. Any political subdivision may also, pursuant to a duly adopted resolution of such governing authority of such political subdivision, enter into contracts with the authority under the terms of which the authority will collect, store, treat and distribute water for such political subdivision. Any political subdivision may also enter into contracts with the authority for the authority to purchase or sell, by installments over such terms as may be deemed desirable, or otherwise, any waterworks, water supply transportation systems; and/or wastewater transportation, treatment and/or sewage disposal or treatment facilities or systems. Any political subdivision is also authorized to enter into operating agreements with the authority, for such terms and upon such conditions as may be deemed desirable, for the operation of waterworks, water supply transportation systems; and/or wastewater transportation, treatment, and/or sewage disposal or treatment facilities or systems by the authority or by any person contracting with the authority to operate such systems; and any political subdivision may lease to or from the authority, for such term and upon such conditions as may be deemed desirable, any waterworks, water supply transportation systems; and be wastewater transportation, treatment, and/or sewage disposal or treatment facilities or systems. Any such contract may contain provisions requiring any public agency to regulate the quality of water and the quality and strength of wastewater to be handled by the sewage disposal system and may also provide that the authority shall have the right to use any streets, alleys and public ways and places within the jurisdiction of a political subdivision during the term of the contract for any of its systems. Such contracts may obligate the political subdivision to make payments to the authority or to a trustee in amounts which shall be sufficient to enable the authority to defray the expenses of establishing, administering, operating, maintaining, expanding and/or decommissioning waterworks, water supply systems, and sewage disposal systems and other wastewater systems under the authority's control, to pay interest and principal (whether at maturity upon redemption or otherwise) on bonds of the authority issued pursuant to this act and to fund reserves for debt service, for operation and maintenance and for renewals and replacements, and to fulfill the requirements of any rate covenant with respect to debt service coverage contained in any resolution, trust indenture or other security agreement relating to the bonds of the authority issued pursuant to this act. Any political subdivision shall have the power to enter into such contracts with the authority as in the discretion of the governing authorities thereof would be in the best interest of such political subdivision. Such contracts may include a pledge of the full faith and credit of such political subdivision and/or the avails of any special assessments made by such political subdivision against property receiving benefits, as now or hereafter provided by law. Any such contract may provide for the sale or lease to or use by the authority of any water and/or wastewater system or any part thereof of the political subdivision; may provide that such authority shall operate any water and/or wastewater system or any part thereof of the political subdivision; may provide that any political subdivision shall have the right to continued use and/or priority use of any of its water and/or wastewater systems or any part thereof during the useful life thereof upon payment of reasonable charges therefor; may contain provisions to assure equitable treatment of public agencies who contract with the authority pursuant to this act; and may contain such other provisions and requirements as the parties thereto may determine to be appropriate or necessary. Such contracts may extend over any period of time, notwithstanding any provisions of law to the contrary, and may extend beyond the life of the water and/or wastewater system or any part thereof or the term of the bonds sold with respect to such facilities or improvements thereto.
(2) The obligations of a political subdivision arising under the terms of any contract referred to in this act, whether or not payable solely from a pledge of revenues, shall not be included within the indebtedness limitations of the political subdivision for purposes of any constitutional or statutory limitation or provision. To the extent provided in such contract and to the extent such obligations of the political subdivision are payable, wholly or in part, from the revenues and other monies derived by the political subdivision from the operation of its water and/or wastewater system, or any part thereof, such obligations shall be treated as expenses of operating such system.
(3) Contracts referred to in this section may also provide for payments in the form of contributions to defray the cost of any purpose set forth in the contracts and as advances for the water and/or wastewater system or any part thereof subject to repayment by the authority. A political subdivision may make such contributions or advances from its general fund or surplus fund or from special assessments or from any monies legally available therefor.
(4) Payments made or to be
made to the authority by a political subdivision pursuant to a contract for a
water and/or wastewater system or any part thereof shall not be subject to
approval or review by the Mississippi Public Service Commission.
(5) Subject to the terms of a contract or contracts referred to in this
act, the authority is hereby authorized to do and perform any and all acts or
things necessary, convenient or desirable to carry out the purposes of such
contracts, including the fixing, charging, collecting, maintaining and revising
of rates, fees and other charges for the services rendered by any water and/or
wastewater system operated or maintained or controlled by the authority,
whether or not such system is owned by the authority.
(6) No provision of this act shall be construed to prohibit any political subdivision, otherwise permitted by law to issue bonds, from issuing bonds in the manner provided by law for the construction, renovation, repair or development of a water and/or wastewater system or any part thereof owned or operated by such political subdivision.
SECTION 11. Whenever a political subdivision shall have executed a contract pursuant to this act and the payments thereunder are to be made either wholly or partly from the revenues of a water and/or wastewater system of a political subdivision or any part thereof or a combination of such systems, the duty is hereby imposed on the political subdivision to establish and maintain and from time to time to adjust the rates charged by the political subdivision for the services of such water and/or wastewater system or systems, such that the revenues therefrom with any taxes and special assessments levied in support thereof will be sufficient at all times to pay: (a) the expense of operating and maintaining such water and/or wastewater system or systems, including all of the political subdivision's obligations to the authority, its successors or assigns under such contract; and (b) all of the political subdivision's obligations under and in connection with revenue bonds theretofore issued, or which may be issued thereafter and secured by the revenues of such water and/or wastewater system or systems. Any such contract may require the use of consulting engineers and financial experts to advise the political subdivision whether and when such rates are to be adjusted.
SECTION 12. (1) The authority shall have the power and is hereby authorized, from time to time, to borrow money and to issue revenue bonds in such principal amounts as the authority may determine to be necessary to provide sufficient funds for achieving one or more of the purposes of this act, including, without limiting the generality of the foregoing, to defray all the costs of the project, the cost of acquisition, construction, improvement, repair, extension or decommissioning of a water and/or wastewater system, or any part thereof; the payment of interest on bonds of the authority issued pursuant to this act; establishment of reserves to secure such bonds and payment of the interest thereon, expenses incident to the issuance of such bonds and to the implementation of the authority's system, and all other expenditures of the authority incident to or necessary or convenient to carry out the purposes of this act.
(2) Before issuing bonds (other than interim notes or refunding bonds as provided in Section 13 of this act) hereunder, the board of directors of the authority shall adopt a resolution declaring its intention to issue such bonds and stating the maximum principal amount of bonds proposed to be issued, a general generic description of the proposed improvements and the proposed location thereof, and the date, time and place at which the board of director proposes to take further action with respect to the issuance of such bonds. The board of directors shall then cause the resolution of intent to be published once a week for at least three (3) consecutive weeks in at least one (1) newspaper having a general circulation within Hinds County, Mississippi. The first publication of such resolution shall be made not less than twenty-one (21) days before the date fixed in such resolution to direct the issuance of the bonds and the last publication shall be made not more than seven (7) days before such date.
(3) Following the completion of the public notice period, bonds of the authority may be issued pursuant to this act payable from and secured by a pledge of all or any part of the revenues under one or more contracts entered into pursuant to this act between the authority and one or more of its members and from all or any part of the revenues derived from the operation of any designated water and/or wastewater system or any part or parts thereof and any other monies legally available and designated therefor, as may be determined by the authority, subject only to any agreement with the purchasers of the bonds. Such bonds may be further secured by a trust indenture between the authority and a corporate trustee, which may be any trust company or bank having powers of a trust company without or within the state.
(4) Bonds of the authority issued pursuant to this act shall be authorized by a resolution or resolutions adopted by a simple majority affirmative vote of the total membership of the board of directors of the authority and by a concurrent affirmative vote of directors representing sixty percent (60%) of the total wastewater flowage as expressed in million gallons daily (MGD) for use of the wastewater system of the authority during the preceding fiscal year. Such bonds may be issued in series, and each series of such bonds shall bear such date or dates, mature at such time or times, bear interest at such rate or rates (not exceeding the maximum rate set out in Section 75-17-103, Mississippi Code of 1972, as amended), be in such denomination or denominations, be in such form, carry such conversion privileges, have such rank or priority, be executed in such manner and by such officers, be payable from such sources in such medium of payment at such place or places within or without the state, provided that one (1) such place shall be within the state, and be subject to such terms of redemption prior to maturity, all as may be provided by resolution or resolutions of the board of directors.
(5) Bonds of the authority issued pursuant to this act may be sold at such price or prices, at public or private sale, in such manner and at such times as may be determined by the authority to be in the public interest, and the authority may pay all expenses, premiums, fees and commissions which it may deem necessary and advantageous in connection with the issuance and sale thereof.
(6) Any pledge of earnings, revenues or other monies made by the authority shall be valid and binding from the time the pledge is made. The earnings, revenues or other monies so pledged and thereafter received by the authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against such authority irrespective of whether such parties have notice thereof. Neither the resolution nor any other instrument by which a pledge is created need be recorded.
(7) Neither the members of the board of directors nor any person executing the bonds shall be personally liable on the bonds or be subject to any personal liability or accountability by reason of the issuance thereof.
(8) Proceeds from the sale of bonds of the authority may be invested, pending their use, in such securities as may be specified in the resolution authorizing the issuance of the bonds or the trust indenture securing them, and the earnings on such investments applied as provided in such resolution or trust indenture.
(9) Whenever any bonds shall have been signed by the officer(s) designated by the resolution of the board of directors to sign the bonds who were in office at the time of such signing but who may have ceased to be such officer(s) prior to the sale and delivery of such bonds, or who may not have been in office on the date such bonds may bear, the manual or facsimile signatures of such officer(s) upon such bonds shall nevertheless be valid and sufficient for all purposes and have the same effect as if the person so officially executing such bonds had remained in office until the delivery of the same to the purchaser or had been in office on the date such bonds may bear.
SECTION 13. The authority may by resolution adopted by its board of directors issue refunding bonds for the purpose of paying any of its bonds at or prior to maturity or upon acceleration or redemption. Refunding bonds may be issued at such time prior to the maturity or redemption of the refunded bonds as the board of directors deems to be in the public interest, without an election on the question of the issuance thereof. The refunding bonds may be issued in sufficient amounts to pay or provide the principal of the bonds being refunded, together with any redemption premium thereon, any interest accrued or to accrue to the date of the payment of such bonds, the expenses of issue of the refunding bonds, the expenses of redeeming the bonds being refunded, and such reserves for debt service or other capital or current expenses from the proceeds of such refunding bonds as may be required by the resolution, trust indenture or other security instruments. The issue of the refunding bonds, the maturities and other details thereof, the security therefor, the rights of the holders and the rights, duties and obligations of the authority in respect of the same shall be governed by the provisions of this act relating to the issue of bonds other than refunding bonds insofar as the same may be applicable. Any such refunding may be effected, whether the obligations to be refunded shall have then matured or shall thereafter mature, either by the exchange of the refunding bonds for the obligations to be refunded thereby with the consent of the holders of the obligations so to be refunded, or by sale of the refunding bonds and the application of the proceeds thereof to the payment of the obligations proposed to be refunded thereby, and regardless of whether the obligations proposed to be refunded shall be payable on the same date or different dates or shall be due serially or otherwise.
SECTION 14. (1) Owners of property who own a certificate of public convenience and necessity or who are located in an area served by a political subdivision may contract with the authority only for the purpose of water and/or wastewater system improvements financed pursuant to this section, with the approval of the affected political subdivision, or may contract with the authority and the affected political subdivision to provide improvements in order to provide such services.
(2) The authority is authorized to issue special assessment bonds to finance water and/or wastewater system improvements by levying and collecting special assessments against the property benefited thereby. The amount borrowed may include that portion of the cost of such improvements to be paid by the issuing entity.
(3) When the authority shall determine to construct such water and/or wastewater system improvements, the cost of which, or any part thereof, is to be assessed against the property benefited, it shall adopt a resolution declaring necessary the proposed improvement describing the nature and extent of the work, the general character of the material to be used and the location and terminal points of the improvements or clearly defining the boundary of areas in which such improvements are to be made. In publishing such resolution declaring the work necessary, the plans and specifications of such work need not be published but may be referred to as being on file in the office of the authority. Such resolution shall fix a date when the governing body shall meet, which shall be not less than fifteen (15) days after the date of the first publication of the notice herein provided for, to hear any objection or remonstrance that may be made to such improvements. The notice herein provided for shall be published once each week for three (3) successive weeks in a public newspaper having a general circulation in Hinds County. The authority shall also send a copy of the notice, by certified mail, postage prepaid, within five (5) days after the first publication of the notice herein provided for, to the owners of the property affected by the resolution at the address shown on the land rolls last approved by the county. However, failure of the clerk to mail such notice, or failure of the owner to receive such notice, shall not invalidate any proceedings in this section, where such notice has been published as provided herein. Notice declaring the work necessary shall be notice to the property owners that the work has been declared necessary.
(4) At the meeting provided for by subsection (3) of this section, or at a time and place to which such meeting may be adjourned, any person aggrieved may appear in person, by attorney or by petition, and may object to or protest against the improvement or any part thereof. The governing body shall consider the objections and protests, if any, and may confirm, amend, modify or rescind the resolution of necessity, and shall determine whether the improvement shall be made and how the cost shall be paid. The determination of the authority shall be final and conclusive.
(5) The resolution determining to proceed with the improvements may direct that the cost and expense of the improvements authorized, or such part as the authority shall fix, shall be a charge upon the property benefited. In such resolution the authority shall direct that the whole, or such part of the cost and expense thereof as it shall fix, shall be assessed against the benefited property. The resolution shall define the entire area to be benefited by the improvement and shall direct that the cost be assessed against each lot or parcel of land as the amount of special tax for the owner's part of the cost of the entire improvement.
(6) The full faith, credit and resource of the authority may be pledged for the payment of the principal and interest on such obligations, and the special assessments levied against the property benefiting from the special improvements to be made hereunder shall be pledged for the payment of such obligations. All funds derived for special assessments levied against the property benefiting from the improvements shall be placed into a special assessment bond fund and shall be used only for the purpose of paying principal and interest on such obligations. Any surplus funds may be invested as provided by law and may be used to pay such obligation at or before maturity.
(7) The obligations authorized to be issued by this section may be issued at any time after the estimated cost of the improvements shall have been ascertained by the authority and the amount of indebtedness thereby incurred shall not exceed the estimated cost of such improvements.
(8) All obligations issued pursuant to this section shall mature not longer than twenty (20) years from the date thereof. Other details regarding issuance of the bonds shall be as provided in the applicable provisions of Section 12 of this act and such other applicable provisions as appropriate.
(9) All special assessments levied under the provisions of this section, unless otherwise provided by the authority, shall become due and shall be paid to the Hinds County Tax Collector in full within ninety (90) days from the date of confirmation thereof. However, the authority may, by resolution, confer upon the property owners the privilege of paying the assessment in installments not exceeding twenty (20) installments with interest from the date of the special assessment bonds at the average rate as that fixed in the bonds issued to raise money to pay the cost of the improvements, which is to be paid, in whole or in part, by the owner of the property benefited thereby. The installments of the assessment shall be due and payable at the same time that the annual real property tax becomes due and payable commencing with the first tax levy which is payable after the issuance of special assessment bonds of such levying authority. The tax collector shall remit payments to the authority within thirty (30) days after receipt thereof.
(10) The authority shall
annually certify to the tax collector, or other officer charged with the duty
of collecting taxes in the area in which the property assessed is located, the
annual installment of assessment due for each tract of land against which an
assessment has been levied, together with the amount of interest on all unpaid
installments at the average interest rate of the bonds issued to raise money to
pay the cost of the improvement, which is to be paid, in whole or in part, by
the owners of property benefited by the proposed improvements. Any property
owner who has elected to pay his assessment in installments shall have the
right at any time to pay the balance of the assessment against his assessment
in full, but in so doing he shall be required to pay all accrued interest
thereon. The collector shall thereupon enter upon the annual tax roll of the
county, in a separate column, the amount of the installment and interest to be
collected from each tract of land assessed, and the collector shall collect the
installment together with the interest on all unpaid installments, at the same
time he collects the annual tax.
(11) (a) If, after the original assessment shall have been made, the
owner of the entire lot or parcel of land so assessed in solido desires that a
change or division of the assessment be made, then such owner, or other party
interested therein, may apply to the Hinds County Tax Assessor for a change or
division of the assessment.
(b) If, after the original assessment shall have been made, a portion of any lot or parcel of land so assessed in solido, shall have changed ownership so that no one (1) person is the owner of the entire lot or parcel of land so assessed in solido, then such owner or other party interested therein, may apply to the Hinds County Tax Assessor for a change or division of the assessment. Such application shall be in writing, filed with the assessor, under the same notice as provided in Section 21-41-31, Mississippi Code of 1972.
(c) If the assessor is
satisfied that the land in each instance will be adequate security for the
assessment placed thereon, and that the rights of the authority will not be
adversely affected, he may order the change or divide the assessments as
requested. The decision of the assessor as to the right to change or divide
assessments may be appealed to the governing body of the authority, whose
decision shall be final. Any aggrieved party shall have the right to appeal the
decisions of the authority.
(12) The provisions of Sections 21-41-7, 21-41-11, 21-41-13, 21-41-15, 21-41-21,
21- 41-23, 21-41-25, 21-41-27, 21-41-29, 21-41-31, 21-41-33, 21-41-35, 21-41-37
and 21-41-39 are
hereby incorporated by reference for purposes of implementing the authority
granted by this section, except that if such provisions conflict with the provisions
of this act, the provisions of this act shall prevail. Any authority granted
by any reference in such sections to Chapter 41 of Title 21, Mississippi Code
of 1972, or any section thereof, shall be effective in granting such authority
pursuant to this section. Where appropriate, references to the municipality or
any board or official thereof shall be deemed to refer to the authority, its
governing body or any official thereof.
(13) No special assessment or contract for improvements shall be authorized pursuant to this section without the approval of the political subdivision providing such water and/or wastewater services whose certificate or statutory service area within which the special assessment and improvement shall occur.
SECTION 15. All bonds (other than refunding bonds, interim notes and certificates of indebtedness, which may be validated) issued pursuant to this act shall be validated as now provided by law in Sections 31-13-1 through 31-13-11, Mississippi Code of 1972, as amended from time to time; however, notice of such validation proceedings shall be addressed to the citizens of the State of Mississippi and the citizens of the respective member political subdivisions (a) which have contracted with the authority pursuant to this act, and (b) whose contracts and the payments to be made by the political subdivisions thereunder constitute security for the bonds of the authority proposed to be issued, and that such notice shall be published at least once in a newspaper having a general circulation within Hinds County, Mississippi. Such validation proceedings shall be instituted in the Chancery Court of Hinds County. The validity of the bonds so validated and of the contracts and payments to be made by the political subdivisions thereunder constituting security for the bonds shall be forever conclusive against the authority and the political subdivisions which are parties to said contracts; and the validity of said bonds and said contracts and the payments to be made thereunder shall never be called into question in any court in this state.
SECTION 16. Bonds issued under the provisions of this act shall not be deemed to constitute, within the meaning of any constitutional or statutory limitation, an indebtedness of the authority or any member agency thereof. Such bonds shall not be secured by a pledge of the full faith and credit of the State of Mississippi, the authority or any member agency thereof, but shall be payable solely from the revenues or assets of the authority pledged therefor. Each bond issued under this act shall contain on the face thereof a statement to the effect that the authority shall not be obligated to pay the same nor the interest thereon except from the revenues or assets pledged therefor.
SECTION 17. The authority shall have power in connection with the issuance of its bonds to:
(a) Covenant as to the use of any or all of its property, real or personal.
(b) Redeem the bonds, to covenant for their redemption and to provide the terms and conditions thereof.
(c) Covenant to charge rates, fees and charges sufficient to meet operating and maintenance expenses, renewals and replacements, principal and debt service on bonds, creation and maintenance of any reserves required by a bond resolution, trust indenture or other security instrument and to provide for any margins or coverages over and above debt service on the bonds deemed desirable for the marketability of the bonds.
(d) Covenant and prescribe as to events of default and terms and conditions upon which any or all of its bonds shall become or may be declared due before maturity, as to the terms and conditions upon which such declaration and its consequences may be waived and as to the consequences of default and the remedies of the registered owners of the bonds.
(e) Covenant as to the mortgage or pledge of, or the grant of a security interest in any real or personal property and all or any part of the revenues from any designated water and/or wastewater system or any part thereof or any revenue-producing contract or contracts made by the authority with any person to secure the payment of bonds, subject to such agreements with the registered owners of bonds as may then exist.
(f) Covenant as to the custody, collection, securing, investment and payment of any revenues, assets, monies, funds or property with respect to which the authority may have any rights or interest.
(g) Covenant as to the purposes to which the proceeds from the sale of any bonds then or thereafter to be issued may be applied, and the pledge of such proceeds to secure the payment of the bonds.
(h) Covenant as to the
limitations on the issuance of any additional bonds, the terms upon which
additional bonds may be issued and secured, and the refunding of outstanding
bonds.
(i) Covenant as to the rank or priority of any bonds with respect to
any lien or security.
(j) Covenant as to the procedure by which the terms of any contract
with or for the benefit of the registered owners of bonds may be amended or
abrogated, the amount of bonds the registered owners of which must consent
thereto, and the manner in which such consent may be given.
(k) Covenant as to the custody of any of its properties or
investments, the safekeeping thereof, the insurance to be carried thereon, and
the use and disposition of insurance proceeds.
(1) Covenant as to the vesting in a trustee or trustees, within or
outside the state, of such properties, rights, powers and duties in trust as
the authority may determine.
(m) Covenant as to the appointing and providing for the duties and
obligations of a paying agent or paying agents or other fiduciaries within or
outside the state.
(n) Make all other covenants and do any and all such acts and things
as may be necessary or convenient or desirable in order to secure its bonds, or
in the absolute discretion of the authority, tend to make the bonds more
marketable, notwithstanding that such covenants, acts or things may not be
enumerated herein; it being the intention hereof to give the authority the
power to do all things in the issuance of bonds and in the provisions for
security thereof which are not inconsistent with the Constitution of this
state.
(o) Execute all
instruments necessary or convenient in the exercise of the powers herein granted
or in the performance of covenants or duties, which may contain such covenants
and provisions, as any purchaser of the bonds of the authority may reasonably
require.
SECTION 18. For the purposes of satisfying any temporary cash flow
demands and deficiencies, and to maintain a working balance for the authority,
the Board of Supervisors of Hinds County or other political subdivisions are
authorized to advance, at any time, such funds which, in its discretion, are
necessary, or borrow such funds by issuance of notes, for initial capital
contribution and to cover start-up costs until such times as sufficient bonds,
assets and revenues have been secured to satisfy the needs of the authority for
its management, operation and formation. To this end, the Board of Supervisors
of Hinds County or other political subdivisions may advance such funds, or
borrow such funds by issuance of notes, under such terms and conditions as may
be provided by resolution of the Board of Supervisors of Hinds County or other
political subdivisions except that each such resolution shall state:
(a) The need for the proceeds advanced or borrowed;
(b) The amount to be advanced or the amount to be borrowed;
(c) The maximum principal amount of any note issued, the interest rate
or maximum interest rate to be incurred and the maturity date of said note.
In addition, the Board of Supervisors of Hinds County or other political
subdivisions may arrange for lines of credit with any bank, firm or person for
the purpose of providing an additional source of repayment for notes issued
pursuant to this section. Amounts drawn on a line of credit may be evidenced
by negotiable or nonnegotiable notes and other evidences of indebtedness and
contain such terms and conditions as the Board of Supervisors of Hinds County
or other political subdivisions may authorize in the resolution approving the
same.
The Board of Supervisors of Hinds County or other political subdivisions may authorize the repayment of such advances, notes, lines of credit and other debt incurred under this section, along with all costs associated with the same, including, but not limited to, rating agency fees, printing costs, legal fees, bank or trust company fees, line of credit fees and other charges to be reimbursed by the authority under such terms and conditions as are reasonable and are to be provided for by resolution of the Board of Supervisors of Hinds County or terms agreed upon with other political subdivisions.
Under this section, the board of supervisors shall not have the authority to contribute substantial amounts for capital improvements to the authority from proceeds derived from ad valorem taxes.
SECTION 19. The authority may, in any authorizing resolution of the board of directors, trust indenture or other security instrument relating to its bonds, provide for the appointment of a trustee who shall have such powers as are provided therein to represent the registered owners of any issue of bonds in the enforcement or protection of their rights under any such resolution, trust indenture or security instrument. The authority also may provide in such resolution, trust indenture or other security instrument that the trustee, or in the event that the trustee so appointed shall fail or decline to so protect and enforce such registered owners' rights, then such percentage of registered owners as shall be set forth in, and subject to the provisions of, such resolution, trust indenture or other security interest, may petition the court of proper jurisdiction for the appointment of a receiver of the waterworks, and/or water supply system and/or wastewater or sewage disposal system the revenues of which are pledged to the payment of the principal of and interest on the bonds of such registered owners. Such receiver may exercise any power as may be granted in any such resolution, trust indenture or security instrument to enter upon and take possession of, acquire, construct or reconstruct or operate and maintain such water and/or wastewater system; fix charges for services of the system and enforce collection thereof, and receive all revenues derived from such system or facilities and perform the public duties and carry out the contracts and obligations of the authority in the same manner as the authority itself might do, all under the direction of such court.
SECTION 20. (1) The exercise of the powers granted by this act will be in all respects for the benefit of the people of the state, for their well-being and prosperity and for the improvement of their social and economic conditions, and the authority shall not be required to pay any tax or assessment on any property owned by the authority under the provisions of this act or upon the income therefrom; nor shall any authority be required to pay any recording fee or transfer tax of any kind on account of instruments recorded by it or on its behalf.
(2) Any bonds issued by the authority under the provisions of this act, their transfer and the income therefrom shall at all times be free from taxation by the state or any local unit or political subdivision or other instrumentality of the state, excepting inheritance and gift taxes.
SECTION 21. All bonds issued under the provisions of this act shall be legal investments for trustees, other fiduciaries, savings banks, trust companies and insurance companies organized under the laws of the State of Mississippi; and such bonds shall be legal securities which may be deposited with and shall be received by all public officers and bodies of the state and all municipalities and other political subdivisions thereof for the purpose of securing the deposit of public funds.
SECTION 22. The state hereby covenants with the registered owners of any bonds of the authority that so long as the bonds are outstanding and unpaid the state will not limit or alter the rights and powers of the authority under this act to conduct the activities referred to herein in any way pertinent to the interests of the bondholders, including, without limitation, the authority's right to charge and collect rates, fees and charges and to fulfill the terms of any covenants made with the registered owners of the bonds, or in any other way impair the rights and remedies of the registered owners of the bonds, unless provision for full payment of such bond, by escrow or otherwise, has been made pursuant to the terms of the bonds or the resolution, trust indenture or security interest securing the bonds.
SECTION 23. The provisions of this action are cumulative of other statutes now or hereafter enacted relating to the issuance of bonds and systems; and to the design, construction, acquisition or approval of facilities for such purposes, and any political subdivision may exercise all presently held powers in the furtherance of this act.
SECTION 24. If any clause, sentence, paragraph, section or part of the provisions of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the reminder there directly involved in the controversy in which such judgment shall have been rendered.
SECTION 25. The activities of the Hinds County Wastewater Authority authorized herein shall not be subject to review or regulation by the Mississippi Public Service Commission.
SECTION 26. This act shall take effect and be in force from and after its passage.