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76.279 Lease of system constructed by metropolitan sewer district -Renewals -- Revenue bonds of metropolitan district.
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In order to provide for the construction of a comprehensive sewage and
sewage treatment system, or storm water and surface drainage system, or
both, the sanitation tax district and a metropolitan sewer district may agree in
writing that the latter shall construct the system and operate it in consideration
that the sanitation tax district lease the system for a term of one (1) year, which
term may be renewed. No such system shall include lateral sewers. It may
include any other appliance or structure reasonably incident to such a system.
The sanitation tax district shall have an exclusive option to renew for each year
succeeding the original term, but the option shall not grant exclusive renewal
options for more than forty (40) years. The method of exercising the exclusive
option to renew the lease shall be any method permissible under law which
does not have the effect of authorizing or permitting the sanitation tax district to
become indebted to an amount exceeding, in any year, the income and
revenue provided for such year within the meaning of Section 157 of the
Constitution of Kentucky.
A metropolitan sewer district is authorized to issue bonds secured solely by
rentals payable under such a lease to finance construction of the system.
Except as provided in the preceding sentence, all matters pertaining to such
bonds shall be governed by KRS 76.254 and 76.261.
History: Created 1964 Ky. Acts ch. 33, sec. 43.
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