HB1663_S_Cmte_Amend

SECTION 1. Any contiguous area situated within Panola County, Mississippi, and not being situated within the corporate boundaries of any existing municipality or being situated within an area which has been certificated by the Mississippi Public Service Commission in connection with the provision of water, sewer, natural gas and/or fire protection may become incorporated as a water district, sewer district, natural gas district and/or fire protection district, or as a combination of any of the four (4) in the manner set forth in Section 2 of this act.

SECTION 2. (1) A petition for the incorporation of Panola County Utility District may be submitted to the Board of Supervisors of Panola County signed by not less than fifteen (15) owners of real property within the boundaries of the proposed district who also reside within the proposed district. Such petition shall include:

(a) Statement of necessity for the service or services to be supplied by the proposed district;

(b) The proposed boundaries of the district;

(c) An estimate of the cost of acquisition or construction of the facilities to be operated by the district, which estimate, however, shall not serve as a limitation upon the financing of improvements or extensions to the facilities; and

(d) A statement of whether or not the Board of Supervisors of Panola County is requested to exercise its authority to levy taxes or assessments as outlined in this act. Such petition shall be signed by the petitioners, with their respective resident addresses, and shall be accompanied by a sworn statement of each person circulating the petition, who shall state under oath that he or she witnessed the signature of each petitioner, that each signature is the signature of the person that it purports to be, and that to the best of his or her knowledge, each petitioner was at the time of signing an owner of real property within, and a resident of, the proposed district.

(2) The Board of Supervisors of Panola County, upon receipt of such a petition, or, in its discretion, without a petition being submitted to it, may initiate the incorporation of a district under this section by adoption of a resolution by not less than a three-fifths (3/5) majority setting forth the following:

(a) A finding that the public convenience and necessity require the creation of the district;

(b) The proposed boundaries of the district;

(c) An estimate of the cost of acquisition or construction of the facilities to be initially operated by the district, which estimate, however, shall not serve as a limitation upon the financing of improvements or extensions to the facilities; and

(d) A statement of whether or not the board of supervisors shall establish its authority to levy the taxes or assessments outlined in this act.

SECTION 3. (1) Upon the filing of a petition, or upon the adoption of a resolution declaring the intent of the board of supervisors to incorporate such district without the filing of a petition, the Board of Supervisors of Panola County shall fix a time and date for a public hearing on the question of the public convenience and necessity of the incorporation of the proposed district. The date of the hearing, the place where it shall be held, the proposed boundaries of the district, and the purpose of the hearing shall be set forth in a notice. The notice shall be signed by the Clerk of the Board of Supervisors of Panola County. Such notice shall be published in a newspaper having general circulation within Panola County once a week for at least three (3) consecutive weeks before the date of such hearing. The first publication shall be made not less than twenty-one (21) days before the date of such hearing and the last such publication shall be made not more than fourteen (14) days before the date of such hearing.

(2) If, at such public hearing, the Board of Supervisors of Panola County finds: (a) that the public convenience and the creation of the district, and (b) that the creation of the district is economically sound and desirable, then the Board of Supervisors of Panola County shall adopt a resolution making those findings and declaring its intention to create the district on a date to be specified in such resolution. Such resolution also shall designate the name of the proposed district, define its territorial limits which shall be fixed by the board pursuant to such hearing, and state whether or not the board of supervisors shall have the authority to levy taxes or assessments as authorized by this act.

A copy of the resolution of intent so adopted shall be published in a newspaper having general circulation within Panola County once a week for at least three (3) consecutive weeks before the date specified in the resolution as the date upon which such board intends to create such district. 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 fourteen (14) days before such date.

If twenty percent (20%) or fifteen hundred (1500), whichever is less, of the owners of real property located in such proposed district file a written petition with such board of supervisors on or before the date specified in the resolution protesting the creation of the district, the Board of Supervisors of Panola County shall call an election on the question of the creation of such district. Such election shall be held and conducted by the election commissioners of Panola County as nearly as may be in accordance with the general laws governing elections. The election commissioners shall determine which of the qualified electors of Panola County reside within the proposed district, and only such qualified electors residing within such proposed district shall be entitled to vote in such election. Notice of such election setting forth the time, place or places and purpose of such election shall be published by the clerk of the board of supervisors, and such notice shall be published for the time and in the manner prescribed in this section for the publication of the resolution of intent. The ballot to be prepared for and used at such election shall be in substantially the following form:

FOR THE CREATION OF THE PANOLA COUNTY UTILITY DISTRICT: ( )

AGAINST CREATION OF THE PANOLA COUNTY UTILITY DISTRICT: ( )

Voters shall vote by placing a cross mark (X) or a check mark (√) opposite their choice.

SECTION 4. If no petition requiring an election is filed, or if three-fifths (3/5) of those voting in the election provided in this act vote in favor of the creation of such district, the Board of Supervisors of Panola County shall adopt a resolution creating the district as prescribed in the resolution of intent.

SECTION 5. If the board of supervisors initiates the creation of the district, all costs incident to the publication of the notices, the public hearing and election, the preparation of the resolution, and all other costs associated with the board meeting the requirements of this act, may be paid by the Board of Supervisors of Panola County, in its discretion, from any available county fund it deems appropriate, or if the creation of the district is initiated by the filing of a petition or petitions, then the Board of Supervisors of Panola County may either pay such costs or require that such costs shall be borne by the parties filing the petition. The Board of Supervisors of Panola County, in its discretion, may require the execution of a cost bond by the parties filing the petition. Such bond shall be in an amount and with good surety to guarantee the payment of such costs.

SECTION 6. Any party having an interest in the subject matter who is aggrieved or prejudiced by the findings and adjudication of the board of supervisors may appeal to the Circuit Court of Panola County in the manner provided by law for appeals from orders of the board of supervisors. However, if no such appeal is taken within a period of fifteen (15) days after the date of the adoption of the resolution creating the Panola County Utility District, the creation of the district shall be final and conclusive and shall not thereafter be subject to attack in any court.

SECTION 7. From and after the date of the adoption of the resolution creating the district, such district shall be a public corporation in perpetuity under its corporate name and, in that name, shall be a body politic and corporate with powers of perpetual succession.

SECTION 8. (1) The powers of the Panola County Utility District may be vested and exercised by a board of commissioners consisting of five (5) members appointed by the Board of Supervisors of Panola County. The members of the board of commissioners shall be qualified electors of Panola County at least twenty-five (25) years of age and of sound and disposing mind and judgment. Upon their initial appointment, one (1) of the commissioners shall be appointed for a term of one (1) year; one (1) for a term of two (2) years; one (1) for a term of three (3) years; one (1) for a term of four (4) years; and one (1) for a term of five (5) years. Thereafter, each commissioner shall be appointed and shall hold office for a term of five (5) years. Any vacancy occurring on such board of commissioners shall be filled by the board of supervisors at any regular meeting of the board of supervisors, and the board of supervisors shall have the authority to fill all unexpired terms of any commissioner.

(2) The board of commissioners shall have complete and sole authority to appoint a chairman and a vice chairman and any other officers it may deem necessary from among the membership of the board of commissioners. It shall be the duty of the chairman to preside at all meetings of the board and to act as the chief executive officer of the board of commissioners and of the district. The vice chairman shall act in the absence or disability of the chairman. The board of commissioners also shall elect and fix the compensation of a secretary-treasurer who may or may not be a member of the board of commissioners. It shall be the duty of the secretary-treasurer to keep all minutes and records of the board of commissioners and to safely keep all funds of the district. The secretary-treasurer shall be required to execute a bond, payable to the district, in a sum and with security as shall be fixed and approved by the board of commissioners. The bond shall be filed with the Chancery Clerk of Panola County.

(3) The operation, management, abolition or dissolution of the district, and all other matters in connection therewith, shall be vested solely and only in the board of commissioners to the specific exclusion of the board of supervisors, except as provided for herein. The abolition, dissolution or termination of such district shall be accomplished only by resolution of the board of commissioners, which resolution must receive at least a four-fifths (4/5) vote of the entire membership of the board. Except as otherwise provided herein, such board of commissioners shall have no power, jurisdiction or authority to abolish, dissolve or terminate any such district while such district has any outstanding indebtedness of any kind or character.

(4) Each person appointed as a commissioner, before entering upon the discharge of the duties of his or her office, shall be required to execute a bond payable to the State of Mississippi in the penal sum of Ten Thousand Dollars ($10,000.00) conditional that he or she will faithfully discharge the duties of his or her office. Each bond shall be approved by the Chancery Clerk of Panola County and filed with such clerk.

(5) Each commissioner shall take and subscribe to an oath of office as prescribed in Section 268, Mississippi Constitution of 1890, before the Chancery Clerk of Panola County, that he will faithfully discharge the duties of the office of commissioner. The oath shall be filed with the Chancery Clerk of Panola County and by him preserved with such official bond.

(6) A majority of the membership of the board of commissioners shall constitute a quorum. Except as otherwise required under this act, all official acts of the board of commissioners shall require a majority vote of the quorum.

(7) The board of commissioners shall have authority to employ such employees, experts and consultants and other professional persons as it may deem necessary to assist the board of commissioners in the discharge of its responsibilities to the extent that funds are made available.

(8) The board of commissioners may receive per diem compensation, if approved by the board of supervisors, in the same manner provided to officers of state boards, commissions and agencies in Section 25-3-69, Mississippi Code of 1972.

SECTION 9. The board of commissioners shall have the power to make regulations to secure the general health of those residing within the district; to prevent, remove and abate nuisances; to regulate or prohibit the construction of privy-vaults and cesspools, and to regulate or suppress those already constructed; and to compel and regulate the connection of all property with sewers.

SECTION 10. The Panola County Utility District created under this act shall have the powers enumerated in the resolution of the board of supervisors creating such district, which shall be limited to the conducting of a water supply system, sewer system, natural gas system and/or fire protection district, or a combination of any or all of the same. To carry out such purpose or purposes, such district, to the extent it is authorized to furnish such services in its organizational documents, shall have the power and authority to acquire, construct, reconstruct, improve, better, extend, consolidate, maintain and operate such system or systems and to contract with any municipality, county or other governmental entity, or with any person, firm or corporation for such services and for a supply and treatment and distribution of water, for fire protection services and facilities, for collection, transportation, treatment and/or disposal of sewage and for a supply of natural gas and for services required incident to the operation and maintenance of a natural gas distribution system. As long as the district continues to furnish any of the services which it was authorized to furnish in the resolution by which it was created, it shall be the sole public corporation or entity and sole power to furnish such services within the district. The district is authorized to furnish and sell at either wholesale or retail such products and services as it is authorized to provide pursuant to this act and to the proceedings creating the district.

Any district created pursuant to this act shall be vested with all the powers necessary and requisite for the accomplishment of the purpose for which such district is created. No enumeration of powers herein shall be construed to impair or limit any general grant of power herein contained, nor to limit any such grant to a power or powers of the same class or classes as those enumerated.

Such districts are empowered to do all acts necessary, proper or convenient to the exercise of the powers granted under this act.

SECTION 11. Any district created pursuant to this act, acting by and through the board of commissioners of the district as its governing authority, shall have the following, among other, powers:

(a) To sue and be sued;

(b) To acquire by purchase, gift, devise and lease, or any other mode of acquisition (other than by eminent domain), and to hold and dispose of, real and personal property of any kind within or without the district, including franchise rights and certificates issued by the Mississippi Public Service Commission;

(c) To make and enter into contracts, conveyances, deeds of trust, bonds, leases or contracts for financial advisory services;

(d) To incur debts, to borrow money, to issue negotiable revenue bonds, and to provide for the rights of the holders thereof;

(e) To fix, maintain, collect and revise rates and charges for services rendered by or through the facilities of such district, which rates and charges shall not be subject to review or regulation by the Mississippi Public Service Commission except in those instances when a municipality operating similar services would be subject to regulation and review. The district shall obtain a certificate of convenience and public necessity from the Mississippi Public Service Commission for operation of a water, sewer and/or natural gas system;

(f) To pledge all or any part of its revenues to the payment of its debt obligations, including, but not limited to, revenues from the district's operations, revenues from special assessments and tax revenues;

(g) To make such covenants in connection with the issuance of bonds or to secure the payment of bonds that a private business corporation can make under the general laws of the state;

(h) To use any right-of-way, public right-of-way, easement, or other similar property or property rights, necessary or convenient in connection with the acquisition, improvement or maintenance of the facilities of the district held by the state, or any political subdivision thereof; however, the governing body of such political subdivisions shall consent to such use;

(i) To enter into agreements with state and federal agencies for loans, grants and aid, and other forms of assistance, including, but not limited to, participation of the sale and purchase of bonds, and to enter into agreements with state agencies, federal agencies and political subdivisions of the State of Mississippi pertaining to matters relating to the operation of any services of the district authorized under this act, and such state agencies and political subdivisions of the State of Mississippi are authorized to enter into such contracts with the Panola County Utility District;

(j) To acquire by purchase any existing works and facilities providing services for which the district was created and any lands, rights, easements, franchises and other property, real and personal, necessary to the completion and operation of such system upon such terms and conditions as may be agreed upon, and if necessary, as part of the purchase price to assume the payment of outstanding notes, bonds or other obligations upon the system;

(k) To extend its services to areas beyond but within one (1) mile of the boundaries of the district; however, no such extension shall be made to areas already occupied by another corporate agency rendering the same service so long as the corporate agency desires to continue to serve such areas. Areas outside the district desiring to be served which are beyond the one-mile limit must be brought into the district by annexation proceedings unless the owners of such areas consent to being part of this district;

(l) To be deemed to have the same status as counties and municipalities with respect to payment of sales taxes on purchases made by such district;

(m) To sell to any municipality in the county, under those terms, conditions and covenants that may be imposed or required by the district, part or all of the utility system or systems within the district; however, in the event of a sale of all of the system or systems, the municipality shall assume all obligations of the district as a condition precedent to the sale;

(n) To contract with any municipality in the county for the operation, maintenance and extension of any utility system or systems or storm drainage systems in the district by the municipality, or with the county for the operation, maintenance and extension of any roadway or street, or for the dedication thereof, upon those terms, conditions and covenants that may be agreed upon between the municipality or the county and the district;

(o) To contract with the United States of America, or any agency of the United States of America, the State of Mississippi, or any political subdivision of the State of Mississippi, or any agency, commission, authority, board or other entity thereof, or any municipality or municipalities, for any of the purposes authorized by this act;

(p) To contract with any person, partnership, corporation or other entity for the operation and maintenance, including billing services, of any property or facilities of the district, upon such terms, conditions and covenants as may be agreed upon by such contracting parties. The board of commissioners may contract for the operation and maintenance of any property or facilities of the district for a term of up to twenty (20) years;

(q) To contract with any person, partnership, corporation or other entity pursuant to which such party may acquire, by construction or otherwise, all or any part of a water system, a sewer system, a fire protection system or a natural gas system with private funds in advance of the issuance of bonds by the district, and such party may be reimbursed by the district for such costs upon the issuance and delivery of bonds and upon conveyance of such water facilities, sewer facilities, fire protection facilities or natural gas facilities to the district; and

(r) To acquire by purchase, gift, device, lease and/or any other mode of acquisition any rural water association located in Panola County.

SECTION 12. The Board of Supervisors of Panola County, upon petition by the board of commissioners of the district, may exercise the power of eminent domain on behalf of the district wherever and whenever public necessity and convenience so requires, and the district may pay the costs of any such proceedings.

SECTION 13. (1) The district shall have the power to issue its bonds to provide funds for the purpose of constructing, acquiring, reconstructing, improving, bettering or extending the facilities to provide the services the district is authorized to provide pursuant to this act and the proceedings organizing the district, and acquiring land therefor. Such bonds shall be payable primarily from the revenues of such facilities, and if so provided for in the proceedings authorizing such bonds, such bonds shall also be payable from special assessments levied pursuant to Section 15 of this act, and further, if so provided for in the proceedings authorizing such bonds and agreed to by resolution of the Board of Supervisors of Panola County authorizing the board of commissioners to make such pledge such bonds shall also be payable from the avails of the ad valorem tax levy provided for in subsection (2) of this section, or from any combination of monies from such revenues, special assessments and tax levies. Such bonds may be issued from time to time without an election being held upon the question of their issuance unless the board of commissioners of the district is presented with a petition for an election upon the question of issuance signed by twenty percent (20%) of the qualified electors residing within the district. The resolution authorizing any issue of bonds other than the initial issue shall be published in a manner similar to the publication of the resolution of intent described in Section 3 of this act. If an election is required, it shall be held in substantial accord with the election described in Section 3 of this act. The cost of any such election under this section shall be borne by the district. Such bonds shall contain such covenants and provisions; shall be executed; shall bear interest at such rate or rates not to exceed fourteen percent (14%) per annum; shall be in such denomination or denominations; shall be payable, both as to principal and interest, at such place or places; and shall mature at such time or times not exceeding thirty-five (35) years from their date, all as shall be determined by such board of commissioners and set forth in the resolution pursuant to which such bonds shall be issued; however, any such bonds which are secured by a pledge of special assessments in addition to a pledge of revenues shall mature at such time or times not exceeding the time period over which such special assessments are payable, as determined by the board of commissioners pursuant to Section 17 of this act. Any provisions of general law to the contrary notwithstanding, any bonds and interest coupons issued pursuant to the authority of this act shall possess all of the qualities of negotiable instruments; and such bonds, premium, if any, and interest thereon shall be exempt from all state, county, municipal and other taxation under the laws of the State of Mississippi. Any bonds issued pursuant to the authority of this act may be refunded in the manner provided herein upon a finding by the board of commissioners that such refunding is in the public interest, and bonds for the betterment, improvement or extension of any facilities of the district may be included with such refunding bonds. Such bonds may be sold without the necessity of advertising for bids therefor and may be sold by negotiated private sale and on such terms, conditions and covenants as may be agreed to by and between the issuing authority and the purchasers of such bonds.

(2) If, and to the extent, provided in the proceedings authorizing the issuance of the bonds and agreed to by resolution of the Board of Supervisors of Panola County authorizing the board of commissioners of the district to make such pledge, then when there are insufficient revenues accruing from the operation of such district or insufficient revenues received from special assessments authorized hereunder, or from both together, according to the provisions made in the proceedings authorizing the issuance of such bonds, to meet the interest and/or principal payments when due on any bonds issued under the authority of this act (excluding for such purpose any amounts in a reserve fund for any such bonds), then, upon certification of such fact by the board of commissioners of such district to the board of supervisors, it shall be the mandatory duty of the Board of Supervisors of Panola County to levy an ad valorem tax on all taxable property within the geographical limits of the district, which tax, together with any other monies available for such purpose, shall be sufficient to provide for the payment of the principal of and interest on such bonds as the same falls due, and, if so provided in the proceedings for the issuance of such bonds, to replenish any reserve fund established for such bonds.

SECTION 14. In addition to the purposes authorized by Section 13(1) of this act, any district created under this act may issue bonds of such district in the manner provided in Section 13(1) for any or all of the following purposes:

(a) To refund the outstanding bonds of such district upon a finding by the board of commissioners that such refunding is in the public interest;

(b) To improve, better or extend the water, sewer, natural gas and fire protection systems of such district;

(c) To purchase or acquire part or all of the water, sewer, natural gas and fire protection system or systems of any other district, municipality or other entity located in whole or in part in Panola County, including part or all of such system or systems within the corporate boundaries of any municipality;

(d) To provide for the payment of the principal, premium and interest on the outstanding bonds of any other district or municipality in connection with the purchase of any facilities of such district or municipality, and to purchase or acquire the outstanding bonds of any other district or municipality;

(e) To purchase or acquire part or all of any privately owned utility system or systems;

(f) To enter into cooperative agreements with the state or federal government, or both, to obtain financial assistance in the form of loans or grants as may be available from the state or federal government, or both (reference to the state or federal government as used herein shall specifically include any agency thereof); and to execute and deliver at private sale notes or bonds as evidence of such indebtedness in the form and subject to the terms and conditions as may be imposed by the state or federal government, or both; and to pledge the income and revenues of the district, or the income and revenues from any part of the area embraced in the district (which revenues in either instance shall include, but not be limited to, revenues from special assessments and tax revenues), in payment thereof; and the state and any agency thereof is authorized to enter into such agreements with the district;

(g) To purchase or acquire part or all of any utility system or systems located in whole or in part in Panola County owned by the United States or any agency thereof, or the State of Mississippi or any agency, commission, authority, board or other entity thereof, and to provide therefor as follows:

(i) In the event that any outstanding bonds to be purchased, acquired or refunded by the district created pursuant to this act, by the terms thereof: (a) mature without option of prior payment after the date of the district bonds to be issued; or (b) mature on specified dates, but with the option reserved to call in, pay and redeem such bonds on a date subsequent to the date of the district bonds to be issued; and in the event that the holder or holders of such outstanding revenue bonds are numerous, cannot be immediately located or will not accept district bonds to be issued in exchange for and upon surrender and cancellation of a like amount of such outstanding bonds, then the district, in its discretion, may sell district bonds and deposit with a trustee to be designated in the resolution issuing such district bonds an amount sufficient to redeem all such outstanding county, district or municipal bonds, together with accrued interest and any premium required for such redemption on the earliest call date or on the maturity date of noncallable bonds. Such deposits shall be held in a trust fund and shall be used for no purpose other than the redemption of such outstanding bonds, the payment of interest thereon as the same shall mature and come due, and the payment of any premium required for redemption of such bonds on their callable or maturity date or dates. In the event that any of such outstanding bonds are subject to call for redemption, the county, district or municipality, before the issuance of district bonds therefor, shall exercise such right or call and shall call such outstanding bonds for redemption on the earliest possible call date.

The district, by resolution, may direct that such trust fund be invested in bonds, notes, certificates or other obligations of, or guaranteed by, the United States of America and maturing or being redeemable at or before the time when such funds will be needed for the redemption of such outstanding bonds. For the purpose of determining the adequacy of such deposits, the maturity value or redemption value of all such investments and the interest accruing thereon to maturity or call date, shall be considered as cash on hand. The district may make such covenants and do any and all acts and things as may be necessary, convenient and desirable in order to secure such bonds, in order to make such bonds more marketable, notwithstanding that such covenants, acts or things may not be enumerated herein or expressly authorized herein. It is the intention of this act to give the governing authority of the district, in issuing such bonds, the power to do all things required or necessary in the issuance of such bonds and for their execution which are not inconsistent with the Mississippi Constitution of 1890.

The district bonds herein authorized may be issued concurrently and in combination with bonds issued to provide funds for any or all of the purposes authorized by this act. In the issuance of bonds hereunder, a sufficient sum may be added to the principal amount thereof: (a) to provide for the payment of all reserves, interest, expenses, premiums, fees and commissions deemed necessary or advantageous incident to the issuance and delivery or exchange of such bonds; and (b) to provide for the payment into a reserve fund of a sum not exceeding the maximum annual principal and interest requirements of such bonds, as a reserve therefor.

SECTION 15. In addition to the charges and levies elsewhere provided for in this act, the board of commissioners may levy and collect special assessments on any property located in the district to provide funds for the purposes for which bonds may be issued under this act, and may pledge the receipts from the special assessments to secure the payment of the principal of, premium, if any, and interest on any bonds authorized to be issued pursuant to this act.

Any special assessments authorized under this section shall be levied and collected in the manner provided in Sections 21-41-1 through 21-41-53, Mississippi Code of 1972, except as otherwise herein provided; however, it is hereby specifically provided that any special assessment for any type of improvement may be made according to any of the methods for making special assessments, in the discretion of the board of commissioners of the district. The board of commissioners may secure bonds of the district solely from the aforesaid receipts from special assessments, or may pledge such receipts in addition to the pledge of revenues of the district or the receipts from any tax levy authorized in this act, or from any combination of monies from the special assessments, revenues and tax levies. Bonds issued pursuant to this act shall be payable as to principal, premium, if any, and interest solely from the sources authorized in this act and pledged or contracted for pursuant to the proceedings authorizing and directing the issuance of such bonds.

SECTION 16. Any bonds secured by a pledge of the special assessments authorized in Section 15 shall mature at any time or times, not exceeding twenty (20) years from the date of the bonds, and may be in fully registered form or in bearer form, as determined by the board of commissioners.

SECTION 17. All special assessments levied under this act shall be payable in equal annual installments over a period not in excess of twenty (20) years, as determined by the board of commissioners, with interest from the date of the confirmation of the assessment at a rate, to be fixed by the board of commissioners, which will produce sufficient funds for the payment of all or a specified portion of the principal of and interest on the bonds as they mature and accrue and for fees and expenses for a paying agent and/or trustee for the bonds. The amount to be paid pursuant to such special assessments may be limited by the board of commissioners to the assessments needed for the aforesaid purposes. Any property owner who shall not have taken an appeal from the assessment, upon failure to pay the assessment in full within thirty (30) days from the date of confirmation, shall be deemed to have elected to pay the assessment in installments as provided in this section, and shall be deemed to have admitted the legality of the assessment, and the right to contest the validity of the assessment shall be waived. 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 county tax levy which is payable after the expiration of thirty (30) days from the date of confirmation of the assessment.

SECTION 18. The resolution declaring the intent of the board of commissioners to proceed with the special improvements authorized by this act may direct that all of the expenses of the property or facilities of the district, or such part of the expenses that the board of commissioners shall charge upon the property in the district, shall be assessed according to the frontage rule or area rule, as outlined in this section. Bonds may be issued for one or more projects, and the area and method of assessment for each project shall be specified in the resolution declaring the intent of the board of commissioners of the district to proceed with that project.

The resolution declaring the intent of the board of commissioners to proceed with the special improvements shall: (a) define the area to be benefited by each improvement, with each improvement being designated as a project; (b) fix the amount or percentage of the charge to be levied upon the property benefited; (c) designate the minimum and maximum number of years between the date of the bonds and the maturity of those bonds; (d) delineate the method of determining the amount of special assessments to be levied on each lot or parcel of land in the benefited area; and (e) designate the minimum and maximum number of equal annual installments that the board of commissioners may later allow for the payment of assessments with interest on those assessments.

If the board of commissioners determines that the front foot rule is the most equitable method of distributing the cost among the properties, then the resolution shall direct that the cost to be assessed against each lot or parcel of land shall be determined by dividing the entire cost to be assessed by the total number of front feet of real property abutting upon the utility easement, street, railroad or public or private right-of-way on which the project is located and which will be subject to such special assessment, and multiplying the quotient by the total number of front feet in any particular lot or parcel of land fronting in the utility easement, street, railroad or public or private right-of-way on which the project is located. The result of this formula shall be assessed against each lot or parcel of land for the owner's part of the cost of the entire improvement to be paid through special assessments.

If the board of commissioners determines that the area rule is the most equitable method of distributing the cost among the properties, then the resolution shall direct that the cost to be assessed against each lot or parcel of land shall be determined by dividing the entire cost to be assessed by the total number of acres or square feet in the area being benefited and that is subject to such special assessment, and multiplying the quotient by the total number of acres or square feet in any particular lot or parcel of land. The result of this formula shall be assessed against each lot or parcel of land for the owner's part of the cost of the entire improvement to be paid through special assessments.

SECTION 19. If the owners of a majority of the front footage of the property to be assessed under the front foot rule, or if the owners of a majority of the area of the property to be assessed under the area rule, as described in Section 18, file a written protest objecting to the assessments authorized under this act, then the board of commissioners shall not proceed with the special assessment.

SECTION 20. All construction contracts by the district where the amount of the contract shall exceed Twenty Thousand Dollars ($20,000) shall be made upon at least three (3) weeks public notice. Such notice shall be published once a week for at least three (3) consecutive weeks in at least one (1) newspaper having general circulation in Panola County. The first publication of such notice shall be made not less than twenty-one (21) days before the date fixed in the notice for the receipt of bids, and the last publication shall be made not more than fourteen (14) days before such date. The notice shall state the construction project to be done and invite sealed proposals, to be filed with the secretary of the district, to do the work. In all such cases, before the notice is published, plans and specifications for the work shall be prepared by a registered professional engineer and filed with the secretary of the district and remain therein. The board of commissioners of the district shall award the contract to the lowest and best bidder who will comply with the terms imposed by the commission and enter into bond with sufficient sureties to be approved by the commissioners and such penalty as shall be fixed by the commissioners; however, in no case shall such bond be less than the contract price, and the bond shall be conditioned for the prompt, proper, efficient performance of the contract. Contracts of less than Twenty Thousand Dollars ($20,000.00) may be negotiated; however, the board of commissioners shall invite and receive written proposals for the work from at least three (3) contractors regularly engaged in the type of work involved.

SECTION 21. Any area adjacent to any district created pursuant to this act and situated within Panola County and not being situated within the corporate boundaries of any existing municipality may be added to the district by order of the Board of Supervisors of Panola County upon the written consent of one hundred percent (100%) of the owners of real property to be so added. Any area adjacent to the district which is situated within Panola County may be annexed to and become a part of the district by the same procedures prescribed for the creation of the district, except as otherwise provided herein. The petition for any annexation must be signed by the owners of no less than seventy-five percent (75%) of the land to be annexed into the district, computed on a square footage basis (no minimum number being otherwise required). All costs incident to the publication of notice and all other costs incident to the annexation shall be paid by the district.

The district shall have the exclusive right to provide any of the services for which it was created in the annexed territory; however, if any part of the annexed territory is then being served by another corporate agency with any such service, the district, at the option of the other corporate agency, shall either: (a) relinquish its prior right to serve the area occupied by the corporate agency; or (b) acquire by purchase the facilities of such corporate agencies, together with its franchise rights to serve such area. If the annexation affects only a portion of the corporate agency’s facility, the cash considerations for such purpose shall not be less than: (a) the present day reproduction cost, new, of the facilities being acquired, less depreciation computed on a straight-line basis; plus (b) an amount equal to the cost of constructing any necessary facilities to reintegrate the system of the corporate agency outside the annexed area after detaching the portion to be acquired by the district; plus an annual amount payable each year for a period of ten (10) years equal to the sum of twenty-five percent (25%) of the revenues received from sales to consumers within the annexed area during the last twelve (12) months.

If the option is for the district to purchase, upon notification thereof the district shall be obligated to buy and pay for, and the corporate agency shall be obligated to convey to the district, all of its service facilities and franchise rights in the annexed area free and clear of all mortgages, liens and encumbrances for the aforesaid cash consideration.

If the annexed territory affects all of the property and facilities of such other corporate agency, then all such property constituting the entire system or facility of the corporate agency shall be acquired by the district in accordance with the terms and conditions as may be agreed upon, and the district shall have the authority to assume the operation of such entire system or facilities and to assume and become liable for the payment of any notes, bonds or other obligations that are outstanding against such system or facility and payable primarily from the revenues therefrom.

If the district is notified to relinquish its prior right to serve the annexed area, the district shall grant the corporate agency a franchise to serve within the annexed territory; however, the corporate agency shall be entitled to serve only such customers or locations within the annexed area as it served on the date that such annexation became effective.

The annexed territory shall become liable for any existing indebtedness of the district and shall be subject to any taxes levied by the board of supervisors pursuant to the terms of this act in payment of the district's indebtedness.

SECTION 22. The board of commissioners of any district created pursuant to this act shall have the authority to enter into cooperative agreements with the state or federal government, or both, to obtain financial assistance in the form of loans or grants as may be available from the state or federal government, or both, and to execute and deliver at private sale notes or bonds as evidence of such indebtedness in the form and subject to the terms and conditions as may be imposed by the state or federal government, or both, and to pledge the income and revenues of the district, or the income and revenues from any part of the area embraced in the district, in payment thereof. It is the purpose and intent of this section to authorize the district to do any and all things necessary to secure the financial aid or cooperation of the state or federal government, or both, in the planning, construction, maintenance or operation of project facilities.

If the board of supervisors creates the district within one (1) mile of the corporate boundaries of any existing municipality, the municipality may require such district to construct and maintain all facilities, whether purchased or constructed, to standards commensurate with those of the adjoining municipality; however, the governing authorities of the municipality may specifically waive compliance with any or all of such requirements.

SECTION 23. This act, without reference to any statute, shall be deemed to be full and complete authority for the creation of the district and for the issuance of bonds. No proceedings shall be required for the creation of the district or for the issuance of bonds other than those provided for and required herein. All necessary powers to be exercised by the Board of Supervisors of Panola County and by the board of commissioners of the district in order to carry out the provisions of this act are hereby conferred.

SECTION 24. Within one hundred twenty (120) days after the close of each fiscal year, the board of commissioners shall furnish to the Board of Supervisors of Panola County a statement showing the financial condition of the district and a statement of the rates then in effect.

SECTION 25. If the district created under this act includes water and/or sewer facilities, the board of supervisors, where it finds unhealthy or unsanitary or deleterious conditions in such district because of the inadequate or contaminated water supplies or lack of approved septic tanks or because of high water tables or inadequate drainage or inadequate provisions for disposal of sewage, may require by order or resolution, all dwellings and buildings within the district that are within reasonable proximity to the system or systems to be connected to the water and sewer systems of the district.

SECTION 26. Any bonds issued under the provisions of this act may be submitted for validation under the provisions of Chapter 13, Title 31, Mississippi Code of 1972.

SECTION 27. This act shall be liberally construed for the purposes herein set out, the powers hereby granted being additional, cumulative and supplemental to any power granted to Panola County or any municipality or district therein by any general or local and private act of the Legislature.

SECTION 28. If any provisions of this act shall be held to be invalid by any court of competent jurisdiction, the remainder of this act shall not be affected thereby.

SECTION 29. This act shall take effect and be in force from and after its passage.