NORTH CAROLINA GENERAL ASSEMBLY

1965 SESSION

 

 

CHAPTER 496

HOUSE BILL 601

 

 

AN ACT TO AMEND SECTIONS 130-128, 130-138, 130-141 AND 130-144 OF CHAPTER 130 OF THE GENERAL STATUTES OF NORTH CAROLINA TO LIMIT THE TIME WITHIN WHICH BONDS MAY BE ISSUED AND AUTHORIZE THE ISSUANCE OF BOND ANTICIPATION NOTES BY A SANITARY DISTRICT.

 

The General Assembly of North Carolina do enact:

 

Section 1.  Subdivisions (3) and (4) of Section 130-128 of Article 12 of Chapter 130 of the General Statutes of North Carolina are hereby amended to read as follows:

"(3)      To issue bonds and bond anticipation notes of the district in the manner hereinafter provided.

(4)        To cause taxes to be levied and collected upon all taxable property within the district sufficient to meet the obligations of the district evidenced by bonds, bond anticipation notes, certificates of indebtedness and revenue anticipation notes issued against the district and to pay all obligations incurred by the district in the performance of all of its lawful undertakings."

Sec. 2.  Section 130-138 of Article 12 of said Chapter 130 is hereby amended by adding the following paragraphs at the end thereof:

"After a bond resolution has taken effect, as provided in §130-134, bonds may be issued in conformity with its provisions at any time within five years after the time of taking effect, unless the resolution shall have been repealed, which repeal is permitted (without the privilege of referendum upon the question of repeal), unless notes issued in anticipation of the proceeds of the bonds shall be outstanding; provided, however, that where a bond resolution has taken effect prior to July 1, 1965, such bonds may be issued at any time not later than five years after July 1, 1965.

At any time after a bond resolution has taken effect, as provided in §130-134, a sanitary district may borrow money for the purposes for which the bonds are to be issued, in anticipation of the receipts of the proceeds of the sale of bonds, and within the maximum authorized amount of the bond issue. Such loans shall be paid not later than five years after the time of taking effect of the bond resolution authorizing the bonds upon which they are predicated; provided, however, that where a bond resolution has taken effect prior to July 1, 1965, such loans shall be paid not later than five years after July 1, 1965. The sanitary district board may, in its discretion, retire any such loans by means of current revenues or other funds, in lieu of retiring them by means of bonds; provided, however, that the sanitary district board, at or before the actual retirement of any such loans by any means other than the issuance of bonds under the bond resolution upon which such loans are predicated, shall amend or repeal such bond resolution so as to reduce the authorized amount of the bond issue by the amount of the loan to be so retired. Such an amendatory or repealing resolution shall take effect upon its passage, and need not be published. Negotiable notes shall be issued for all moneys so borrowed. Such notes may be renewed from time to time, and money may be borrowed upon notes from time to time for the payment of any indebtedness evidenced thereby, but all such notes shall mature within the time limited by this Section for the payment of the original loan. No money shall be borrowed under this Section at a rate of interest exceeding the maximum rate permitted by law. The said notes may be disposed of by public or private negotiations as provided in the Local Government Act. The issuance of such notes shall be authorized by resolution of the sanitary district board, which shall fix the actual or maximum face amount of the notes and the actual or maximum rate of interest to be paid upon the amount borrowed. The sanitary district board may delegate to any member thereof the power to fix said face amount and rate of interest with the limitations prescribed by said resolution, and the power to dispose of said notes. All such notes shall be executed in the manner provided in this Section for the execution of bonds. They shall be submitted to and approved by the attorney for the sanitary district before they are issued, and his written approval endorsed on the notes."

Sec. 3.  Section 130-141 of Article 12 of said Chapter 130 is hereby amended by rewriting the first paragraph thereof to read as follows:

"Upon the creation of a sanitary district and after each assessment for taxes thereafter the board or boards of county commissioners of the county or counties in which the sanitary district is located shall file with the sanitary district board the valuation of assessable property within the district. The sanitary district board shall then determine the amount of funds to be raised for the ensuing year in excess of the funds available from surplus operating revenues set aside as provided in G.S. 130-144 below to provide payment of interest and the proportionate part of the principal of all outstanding bonds and, to the extent not otherwise provided for, the interest on and the principal of all outstanding bond anticipation notes, and retire all outstanding certificates of indebtedness, revenue anticipation notes issued against the district and to pay all obligations incurred by the district in the performance of its lawful undertakings."

Amend further by rewriting the third paragraph thereof to read as follows:

"The sanitary district board of any sanitary district, in lieu of collecting the taxes in the manner as hereinbefore provided, may cause to be listed by all the taxpayers residing within the district with the person designated by the district board, all the taxable property located within the district, and after determining the amount of funds to be raised for the ensuing year in excess of the funds available from surplus operating revenues set aside as provided in G.S. 130-144 to provide payment of interest and the proportionate part of the principal of all outstanding bonds, bond anticipation notes certificates of indebtedness, revenue anticipation notes issued against the district and to pay all obligations incurred by the district in the performance of all of its lawful undertakings, to determine the number of cents per one hundred dollars ($100.00) necessary to raise said amount. The said sanitary district board in its next annual levy shall levy against all taxable property in the district the number of cents per one hundred dollars ($100.00) necessary to raise the amount with which to pay the obligations of the district, including principal and interest on bonds, bond anticipation notes not otherwise provided for, certificates of indebtedness, revenue anticipation notes and other lawful obligations of the district, which tax shall be collected in the same manner as taxes of other political subdivisions of the State of North Carolina are collected by a tax collector, to be selected by the sanitary district board of the sanitary district electing to assess, levy and collect its taxes in the manner herein provided. The tax collector selected by said sanitary district board and the depository, in which said taxes so collected are deposited, shall qualify in the same manner and give the necessary surety bonds as are required of tax collectors and depositories of county funds in the county or counties in which said sanitary districts are located."

Sec. 4.  Section 130-144 of Article 12 of said Chapter 130 is hereby amended to read as follows:

"A sanitary district board shall immediately upon the placing into service of any of its works apply service charges and rates which shall, as nearly as practicable, be based upon the exact benefits derived. Such service charges and rates shall be sufficient to provide funds for the proper maintenance, adequate depreciation, and operation of the work of the district, and provided said service charges and rates would not thereby be made unreasonable, to include in said service charges and rates an amount sufficient to pay the principal and interest maturing on the outstanding bonds and, to the extent not otherwise provided for, bond anticipation notes of the district and thereby make the project self-liquidating. Any surplus from operating revenues shall be set aside as a separate fund to be applied to the payment of interest on bonds or on bond anticipation notes or to the retirement of bonds or bond anticipation notes or for any one or more of said purposes. As the necessity arises the sanitary district board may modify and adjust such service charges and rates from time to time."

Sec. 5.  All laws and clauses of laws in conflict with the provisions of this Act are hereby repealed.

Sec. 6.  This Act shall be in full force and effect from and after its ratification.

In the General Assembly read three times and ratified, this the 11th day of May, 1965.