§ 31-32-201 — Financing acquisition of utilities

(1) In any municipality
possessed of authority to acquire public utilities operating under general law or
under article XX of the state constitution, unless otherwise provided by the charter
of such municipality, no public utility shall be acquired until the plan for such
acquisition has been adopted by ordinance and such ordinance has been approved
at a regular or special election in the manner provided for authorization of bonded
indebtedness by section 31-15-302 (1)(d). Nothing in this subsection (1) shall prevent
the institution of condemnation proceedings as may be provided by law or require
an election with respect to water facilities or sewerage facilities.

(2) Such ordinance shall describe the property to be acquired, the full
purchase price to be paid by such municipality therefor, and the method of payment
thereof as well as the total obligations to be incurred by such municipality in
making such acquisition, whether by way of general obligation bonds of such
municipality issued under the provisions of section 6 of article XI of the state
constitution or by way of obligations chargeable solely or in part against the income
of such utility, or both. In the event of the issuance of obligations payable solely out
of income, all operating and other costs shall be met solely out of income of the
utility acquired.

(3) Said ordinance may provide for the payment into such income fund for
service to be rendered for municipal purposes, but such payments shall at all times
be reasonable.

Legislative History

Source: L. 75: Entire title R&RE, p. 1244, � 1, effective July 1.