Section 247.130

Title XV LANDS, LEVEES, DRAINAGE, SEWERS AND PUBLIC WATER SUPPLY

Chapter 247

Effective - 28 Aug 1990   

  247.130.  Power of districts — bond elections. — 1.  Any district organized hereunder shall have power to borrow money for any of the purposes provided for in sections 247.010 to 247.220, and to issue bonds therefor.  In such event the board of directors shall proceed substantially as follows:  The board shall adopt a resolution, reciting the necessity for the borrowing of money, the amount of money necessary to be raised, the purposes thereof, and the amount and type or character of bonds to be issued.  Such resolution shall also fix the date of an election to be held for the purpose of testing the sense of the voters of the district on the question of incurring such indebtedness and issue bonds in evidence thereof.

  2.  Such resolution may submit at such election a proposal to issue general obligation bonds or special obligation bonds, or both, but in no event shall the board of directors have authority to issue bonds unless at such election the constitutionally required percentage of the qualified voters of the district voting on any general obligation bonds shall assent thereto and a simple majority of the qualified voters of the district voting on any special obligation bonds shall assent thereto.

  3.  Districts organized under the provisions of sections 247.010 to 247.220 may issue either general obligation bonds or special obligation bonds, as herein defined; provided, however, that the type or character of bonds to be issued shall be determined by the board of directors in advance of calling the bond election and shall be stated in the notice of election as herein provided.

  4.  General obligation bonds, within the meaning of said sections, shall be bonds issued within the limitation of indebtedness prescribed under Section 26 of Article VI of the Constitution of Missouri, for the payment of which, both principal and interest, a direct tax may be levied upon all taxable property within the district.  Before or at the time of issuing general obligation bonds, the board of directors shall provide for the collection of an annual tax, to be levied upon all taxable property within the district sufficient to pay the interest on such bonds as it falls due, and also to constitute a sinking fund for the payment of the principal thereof within twenty years from the date of such bonds; provided, however, that the net income and revenue arising from the operation of the waterworks system of such district, after providing for costs of operation, maintenance, depreciation and necessary extensions and enlargements, shall be transferred to and become a part of the interest and sinking fund applicable to such general obligation bonds, unless or until such net revenues are pledged to the payment of special obligation bonds as herein provided.

  5.  Special obligation bonds, within the meaning of sections 247.010 to 247.220, shall be bonds payable, both as to principal and interest, wholly and only out of the net income and revenues arising from the operation of the waterworks system of any such district, after providing for costs of operation, maintenance, depreciation and necessary extensions and enlargements, and such bonds shall not be deemed to be indebtedness of any such district within the meaning of any constitutional or statutory limitation upon the incurring of indebtedness.  Before or at the time of issuing any such special obligation bonds, the board of directors shall pledge such net income and revenues to the payment of such bonds, both principal and interest, and shall covenant to fix, maintain and collect rates for water and water service supplied by such district so as to assure that such net income and revenues will be sufficient for the purposes herein required.

  6.  All bonds issued under the provisions of sections 247.010 to 247.220 shall be payable serially, beginning not more than five years after the date they bear; the last installment of any general obligation bonds so issued shall be payable not more than twenty years after such date, and the last installment of any special obligation bonds so issued shall be payable not more than thirty-five years after such date.  Such bonds shall bear such rate of interest, not exceeding six percent per annum, payable annually or semiannually, shall be payable at such place or places, within or without the state of Missouri, shall be executed by the president of the board of directors, attested by the clerk of said board, under the seal of the district, and shall be of such denomination and be payable in such medium of payment, all as the board of directors may determine; provided, further, that should any bond issue fail to carry at an election held for that purpose, the board of directors shall have no power to call another election on the question of the issuance of bonds for a period of four months thereafter.

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(RSMo 1939 § 12632, A.L. 1945 p. 847, A.L. 1959 S.B. 160, A.L. 1978 H.B. 971, A.L. 1990 S.B. 862)