A.(1) The Sewerage and Water Board of New Orleans shall fix the rates to be charged users of the sewerage system, and shall collect the same from all persons who use the sewerage system, provided however:
(a) The city of New Orleans and its public institutions from which no revenue is derived shall be exempt from such charges.
(b) Those accounts of the Orleans Parish School Board which were, prior to July 1, 1992, exempt from paying water charges under the provision of R.S. 33:4096(A)(1) are exempt from paying sewerage charges during the period of said water payment exemption. However, this exemption shall be retroactive to the effective date of said water charge exemptions.
(c) The Orleans Parish School Board shall be exempt from said charges as follows:
(i) Those accounts of the Orleans Parish School Board which have been exempt prior to July 1, 1992, from the payment of water charges are exempt from the payment of sewerage charges and sewerage service charges during the period of said water-payment exemption. However, this exemption shall be retroactive to the effective date of said water-charge exemptions.
(ii) Effective July 1, 1992 through June 30, 1993, each school campus and each nonschool facility of the Orleans Parish School Board shall be exempt from sewerage charges based on water consumed which does not exceed six gallons per day, for the three hundred sixty-five days of that year, for each student enrolled and any other person regularly assigned to that campus or facility within thirty school days of the commencement of the school year. Effective July 1, 1993, and thereafter, each school campus and nonschool facility of the Orleans Parish School Board shall be exempt from all sewerage use charges based on water consumed which does not exceed four gallons per day, per three hundred sixty-five days a year for each student enrolled and any other person regularly assigned to that campus or facility within thirty school days of the commencement of the school year. Effective July 1, 1993, and thereafter, the Orleans Parish School Board also shall be exempt from all sewerage service charges.
(iii) The above exemption is determined by the student/employee census report or equivalent as submitted to the state Department of Education. If said report is discontinued, a similar report shall substitute.
(2) The rates to be charged the users of the sewerage system shall not become effective unless and until approved by the Board of Liquidation, City Debt, and by the council of the city of New Orleans. Prior to taking any decisive action in connection with the rates and at least thirty days before setting rates, the Sewerage and Water Board of New Orleans shall notify the Board of Liquidation, City Debt, and the council of the city of New Orleans of its intention, and the Sewerage and Water Board of New Orleans shall hold at least three public meetings to discuss the rates. The public shall be notified of the hearings in the official journal no less than three times within the week prior to each such meeting. Each member of the Board of Liquidation, City Debt, and the council of the city of New Orleans shall be furnished a copy of the transcript of each hearing at least twenty days prior to any action being taken by any of said three public agencies.
(3) These rates shall be equal and uniform for each grade or class of customers, and shall be framed so as to cover the cost of maintenance and operation of the public sewerage disposal system, the construction cost of sewerage treatment plants, cost of improvements, extensions, betterments, and repairs to said system, the establishment of a replacement fund, and the revenues herein required to be raised annually to insure the proper development of said sewerage system and the payment of the interest on and principal of sewerage service revenue bonds; including payments required to be made into sinking funds and debt service reserve funds.
B.(1) The Sewerage and Water Board of New Orleans, the "sewerage and water board", shall have the power and is hereby authorized to issue from time to time in the name of the city of New Orleans, bonds payable solely out of revenues derived from sewerage service charges for purposes relating to the sewerage system of the city including the refunding of bonds issued under the authority of this Section. Such bonds may be additionally secured by municipal bond insurance, bank guarantees, surety bonds, letters of credit, and other devices to enhance the credit quality of the bonds, the cost of which credit enhancement devices may be paid from the proceeds of the bonds or other lawfully available funds of the sewerage and water board. Such bonds shall be issued pursuant to a resolution or resolutions adopted by the sewerage and water board by affirmative vote of two-thirds of the members thereof, which resolution shall fix all details of such bonds including their form, terms, security, manner of execution, repayment schedule, and redemption features. The resolution or resolutions providing for the issuance of such bonds shall not be effective until approved by resolution adopted by affirmative vote of a majority of the members of the council of the city of New Orleans and by a resolution adopted by affirmative vote of a majority of the members of the Board of Liquidation, City Debt, the "board of liquidation".
(2) Bonds issued under the authority of Paragraph (1) of this Subsection shall bear such rate or rates of interest as provided for in R.S. 39:1424 and 1424.1 and shall be sold by the board of liquidation, subject to the limitations and restrictions contained in the resolution or resolutions adopted by the sewerage and water board providing for the issuance of such bonds. The provisions of Chapter 13-A and Chapter 14 of Title 39 of the Louisiana Revised Statutes of 1950 shall be applicable to all bonds issued under the authority of this Section.
(3) After a resolution authorizing the issuance of sewerage service revenue bonds hereunder has been adopted by the sewerage and water board, it shall be published one time in the official journal of the city of New Orleans provided it shall not be necessary to publish exhibits to such resolution if the same are made available for public inspection and that fact is stated in the publication. For a period of thirty days from the date of publication, any person in interest shall have the right to contest the legality of such resolution and the legality of the bond issue for any cause. After that time no one shall have any cause or right of action to contest the legality of said resolution or of the bonds authorized thereby for any cause whatsoever. If no suit, action, or proceeding is begun contesting the validity of the bond issue within the thirty days herein prescribed, the authority to issue the bonds and to provide for the payment thereof, and the legality thereof and of all of the provisions of such resolution shall be conclusively presumed, and no court shall have authority to inquire into such matters.
(4) Such bonds shall be sold by the board of liquidation at either public or private sale and may be sold at such price or prices (which may be at a discount from par) as may be determined by the board of liquidation. Bonds may be sold at private sale only if such sale is authorized by a vote of two-thirds of the members of the board of liquidation voting on the matter. If the bonds are to be sold at public sale, notice of the sale shall be published in accordance with the provisions of R.S. 39:1426. In the case of a public sale of the bonds, they shall be awarded to the best bidder therefor but the board of liquidation may reject any and all bids received.
(5) Bonds issued hereunder to refund outstanding sewerage service revenue bonds shall be issued in accordance with the provisions of Chapter 14-A of Title 39 of the Louisiana Revised Statutes, and for the purposes thereof, the sewerage and water board shall be deemed to be the governing body of the issuer wherever such term is used in said Chapter, provided, however, the refunding bonds shall be sold by the board of liquidation. The provisions of this Subsection B, except for those contained in Paragraphs 6, 7 and 8 hereof, shall apply to refunding bonds issued hereunder. The payments for principal and interest and sinking and debt service funds, the use, deposit and investment of bond proceeds and monies in such funds, and any matters referenced in said Subsections shall be in accordance with the provisions of the resolution authorizing the issuance of the refunding bonds.
(6) The sewerage and water board shall, on the first day of each month, pay to the board of liquidation not less than one-twelfth of the amount required to be paid to the board of liquidation in the current calendar year by the terms of the resolution or resolutions of the sewerage and water board authorizing the issuance of sewerage service revenue bonds hereunder for the payment of interest on and principal of such bonds due in said year and for payments required to be made in said year into the sinking fund or funds and debt service reserve funds. Such sinking funds and debt service funds required to be established by the resolution of the sewerage and water board shall be in the custody and under the control of the board of liquidation, which shall require the sewerage and water board to keep a balance in such sinking fund and debt service reserve funds at all times sufficient to meet the interest on and principal of all outstanding sewerage service revenue bonds payable solely out of revenues derived from sewerage service rates, for the next succeeding twelve month period, or such greater amount as may be provided by the resolution of the sewerage and water board.
(7) The board of liquidation may, in its discretion, invest any of the proceeds of such sewerage service revenue bonds, debt service funds, and debt service reserve funds in such investments as it is authorized by law to make and such proceeds shall be so invested whenever an officer designated by the sewerage and water board requests the investment thereof.
(8) The proceeds of the sale of such sewerage service revenue bonds shall be paid to the board of liquidation for the sewerage and water board, and shall be deposited in a special sewerage service revenue bond account, and shall be used solely and exclusively for the construction of sewerage treatment plants, improvements, extensions, betterments and repairs to the public sewerage system of the city of New Orleans, or for the acquisition of land to be used in connection therewith. All funds in said sewerage service revenue bond account shall be paid out by the board of liquidation pursuant to warrants drawn by the sewerage and water board in the same manner as funds are now withdrawn under the provisions of R.S. 33:4094.
C. The Sewerage and Water Board in the resolution authorizing the issuance of sewerage service revenue bonds shall make such covenants with respect to the fixing and collection of sewerage service rates; the use of the revenues derived therefrom; the operation and maintenance of the sewerage system of the city, including insurance of such properties and insurance against other risks; and it shall provide therein for the payment of enough revenues into the funds created for the payment of the interest on such sewerage service revenue bonds and for the payment, amortization or redemption of such bonds as may be deemed expedient by the Board of Liquidation, City Debt, to insure the sale of said bonds on the best possible terms.
D. So long as any of the sewerage service revenue bonds shall be outstanding, the Sewerage and Water Board shall fix sewerage service rates which shall be sufficient to produce revenues over and above the amount required for operation and maintenance of the sewerage system of the city of New Orleans, which shall be not less than the amount set forth in the resolution authorizing the issuance of said bonds.
E. The Board of Liquidation, City Debt, is empowered by appropriate judicial proceedings to compel the Sewerage and Water Board to fix sewerage service rates which will produce such net revenues as required in the resolution adopted by the Sewerage and Water Board authorizing the issuance of any sewerage revenue bonds and to perform and do such other acts as the Sewerage and Water Board is required to do as provided herein.
F. All such Sewerage Service Revenue Bonds shall be issued in the name of the city of New Orleans, but such bonds shall be excluded in applying any limitation upon the power of the city of New Orleans to issue bonds for any purpose, and such bonds shall bear on their face a statement that they do not constitute a debt of said city, but are payable, as to principal and interest, solely out of the sewerage service revenues pledged for that purpose.
G. Such sewerage service revenue bonds shall constitute negotiable instruments, and the issuance thereof shall be subject to no limitation of indebtedness or other limitation prescribed by the constitution and laws of the state of Louisiana, except as set forth in this Section.
H. The provisions hereof, and the resolutions of the Sewerage and Water Board authorizing the issuance of sewerage service revenue bonds hereunder, and the resolutions of the council of the city of New Orleans and of the Board of Liquidation, City Debt, approving the resolutions of the Sewerage and Water Board, shall constitute a contract between the state of Louisiana, the city of New Orleans, the Sewerage and Water Board of New Orleans, the Board of Liquidation, City Debt, and the holders of such sewerage service revenue bonds. The holders of such bonds shall have the right by injunction, mandamus, or other appropriate remedy to enforce the payment of said bonds and the interest thereon and the observance of the covenants made in the resolutions authorizing the issuance of said bonds.
I. The Sewerage and Water Board of New Orleans may use the collections from sewerage service rates charged to private consumers for the maintenance and operation of the public sewerage system; construction of sewage treatment plants; the cost of improvements, extensions, betterments, and repairs to said system; the establishment and maintenance of a replacement fund; and to provide for the payment of interest on and principal of such sewerage service revenue bonds, including payments required to be made to any sinking fund for the amortization of such bonds, and for the creation of debt service reserves for said bonds.
J. Bonds issued under authority hereof shall be exempt from all taxation for state, parish, municipal or other local purposes. Savings banks, tutors of minors, curators of interdicts, trustees and other fiduciaries may invest the funds in their hands in said bonds. Said bonds may be used for deposit with any officer, board, municipality or other political subdivision of the state of Louisiana, in any case where, by present or future laws, deposit or security is required. Said bonds may be registered and released from registry under such rules as the Board of Liquidation, City Debt, may prescribe.