MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Municipalities; Ways and Means

By: Representatives Jennings, Bowles, Davis, Johnson, Markham, Miller, Robertson, Thomas, Woods

AN ACT TO AUTHORIZE A MUNICIPALITY TO ENTER INTO AN INTERLOCAL AGREEMENT WITH A RURAL WATER ASSOCIATION OPERATING WITHIN THE CORPORATE LIMITS OF THE MUNICIPALITY FOR THE PURPOSE OF IMPROVING FIRE PROTECTION; TO AUTHORIZE A MUNICIPALITY TO PAY OR REIMBURSE, OR BOTH, A RURAL WATER ASSOCIATION FOR THE COST OF UPGRADING THE WATER SYSTEM FOR FIRE PROTECTION PURPOSES; TO SET OUT THE PROVISIONS THAT SHALL BE REQUIRED TO BE IN THE INTERLOCAL AGREEMENT; TO AUTHORIZE THE MUNICIPALITY TO INCUR BONDED OR FLOATING INDEBTEDNESS, INCLUDING GENERAL OBLIGATION INDEBTEDNESS, TO PAY FOR THE COST OF SUCH WATER SYSTEM IMPROVEMENT; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) It is the purpose of this act to permit the governing authorities of any municipality and a rural water association operating within the corporate limits of the municipality to make the most efficient use of their powers in upgrading their respective water systems for the purpose of improving local fire protection by enabling them to cooperate and to contract with each other on a basis of mutual advantage and thereby provide services and facilities in a manner that will accord best with geographic, economic, population and other factors influencing the needs and development of the fire protection of local communities.

(2) The governing authorities of any municipality may enter into an interlocal agreement with any rural water association operating within the corporate limits of the municipality for the purpose of constructing, new construction or upgrading the water system of the municipality or the water association, or both, for the purpose of improving the fire protection of the municipality.

SECTION 2. (1) No interlocal agreement made under this act shall be entered into by any municipality or rural water association without the approval by resolution on the minutes of the governing authorities of the municipality and the rural water association.

(2) No power, authority and responsibility may be exercised under this act by the governing authorities of any municipality or rural water association which it would not have authority to exercise otherwise pursuant to the law controlling such municipality or association.

(3) Any power, authority or responsibility exercised or capable of being exercised by the governing authorities of any municipality of this state may be exercised and carried out jointly with the governing authorities of any rural water association.

SECTION 3. Any agreement made under the provisions of this act shall specify the following:

(a) Its duration.

(b) Its purpose or purposes.

(c) The precise organization, composition, nature and powers of any separate legal or administrative entity created thereby; the specific citation of statutory authority vested in each of the governing authorities of the municipality and rural water association which are to be a party to the agreement.

(d) The manner of financing, staffing and supplying the joint or cooperative undertaking and of establishing and maintaining a budget therefore; provided, that the treasurer and the disbursing officer of either the municipality or the association, or both, shall be designated in the agreement to receive, disburse and account for all funds of the joint undertaking as a part of the duties of the officer or officers.

(e) The permissible method or methods to be employed in accomplishing the partial or complete termination or amendment of the agreement and for disposing of property upon such partial or complete termination or amendment.

(f) The provision for administration, through a joint board or other appropriate means, of the joint or cooperative undertaking in the event that the agreement does not or may not establish a separate administrative body or legal entity to conduct the joint or cooperative undertaking. In the case of a joint board, both the governing authorities of the municipality and the rural water association shall be represented.

(g) The manner of acquiring, holding and disposing of real and personal property used in the joint or cooperative undertaking in the event that the agreement does not or may not establish a separate administrative body or legal entity to conduct the joint or cooperative undertaking.

(h) Any other necessary and proper matters.

SECTION 4. The governing authorities of any municipality entering into an interlocal agreement with a rural water association operating within the corporate limits of the municipality pursuant to this act may incur bonded and floating indebtedness, including general obligation indebtedness as authorized by Sections 21-33-301 through 21-33-329 and may appropriate funds for the purpose and in the manner prescribed by law without regard to whether the activities and improvements authorized under Section 1 of this act to be financed by such debt or appropriation are within or without the corporate limits of the municipality. The governing authorities of the municipality may sell, lease, grant or otherwise supply goods and services to the rural water association which is a party to the interlocal agreement or the administrative body or legal entity created to operate the joint or cooperative undertaking.

SECTION 5. After a water system has been constructed or upgraded pursuant to the provisions of this act, the municipality which reimbursed or paid a rural water system for the cost of such construction or upgrading shall not be charged with the costs of such construction or upgrade upon its purchase of the water system. The price of such newly constructed or upgraded water system shall be reduced by an amount equal to the costs paid by the municipality to the rural water system for such construction or upgrading of the water system.

SECTION 6. This act shall take effect and be in force from and after its passage.