247.130. Power of districts--bond elections.
Power of districts--bond elections.
247.130. 1. Any district organized hereunder shall havepower to borrow money for any of the purposes provided for insections 247.010 to 247.220, and to issue bonds therefor. Insuch event the board of directors shall proceed substantially asfollows: The board shall adopt a resolution, reciting thenecessity for the borrowing of money, the amount of moneynecessary to be raised, the purposes thereof, and the amount andtype or character of bonds to be issued. Such resolution shallalso fix the date of an election to be held for the purpose oftesting the sense of the voters of the district on the questionof incurring such indebtedness and issue bonds in evidencethereof.
2. Such resolution may submit at such election a proposalto issue general obligation bonds or special obligation bonds,or both, but in no event shall the board of directors haveauthority to issue bonds unless at such election theconstitutionally required percentage of the qualified voters ofthe district voting on any general obligation bonds shall assentthereto and a simple majority of the qualified voters of thedistrict voting on any special obligation bonds shall assentthereto.
3. Districts organized under the provisions of sections247.010 to 247.220 may issue either general obligation bonds orspecial obligation bonds, as herein defined; provided, however,that the type or character of bonds to be issued shall bedetermined by the board of directors in advance of calling thebond election and shall be stated in the notice of election asherein provided.
4. General obligation bonds, within the meaning of saidsections, shall be bonds issued within the limitation ofindebtedness prescribed under section 26 of article VI of theConstitution of Missouri, for the payment of which, bothprincipal and interest, a direct tax may be levied upon alltaxable property within the district. Before or at the time ofissuing general obligation bonds, the board of directors shallprovide for the collection of an annual tax, to be levied uponall taxable property within the district sufficient to pay theinterest on such bonds as it falls due, and also to constitute asinking fund for the payment of the principal thereof withintwenty years from the date of such bonds; provided, however,that the net income and revenue arising from the operation ofthe waterworks system of such district, after providing forcosts of operation, maintenance, depreciation and necessaryextensions and enlargements, shall be transferred to and becomea part of the interest and sinking fund applicable to suchgeneral obligation bonds, unless or until such net revenues arepledged to the payment of special obligation bonds as hereinprovided.
5. Special obligation bonds, within the meaning of sections247.010 to 247.220, shall be bonds payable, both as to principaland interest, wholly and only out of the net income and revenuesarising from the operation of the waterworks system of any suchdistrict, after providing for costs of operation, maintenance,depreciation and necessary extensions and enlargements, and suchbonds shall not be deemed to be indebtedness of any suchdistrict within the meaning of any constitutional or statutorylimitation upon the incurring of indebtedness. Before or at thetime of issuing any such special obligation bonds, the board ofdirectors shall pledge such net income and revenues to thepayment of such bonds, both principal and interest, and shallcovenant to fix, maintain and collect rates for water and waterservice supplied by such district so as to assure that such netincome and revenues will be sufficient for the purposes hereinrequired.
6. All bonds issued under the provisions of sections247.010 to 247.220 shall be payable serially, beginning not morethan five years after the date they bear; the last installmentof any general obligation bonds so issued shall be payable notmore than twenty years after such date, and the last installmentof any special obligation bonds so issued shall be payable notmore than thirty-five years after such date. Such bonds shallbear such rate of interest, not exceeding six percent per annum,payable annually or semiannually, shall be payable at such placeor places, within or without the state of Missouri, shall beexecuted by the president of the board of directors, attested bythe clerk of said board, under the seal of the district, andshall be of such denomination and be payable in such medium ofpayment, all as the board of directors may determine; provided,further, that should any bond issue fail to carry at an electionheld for that purpose, the board of directors shall have nopower to call another election on the question of the issuanceof bonds for a period of four months thereafter.
(RSMo 1939 § 12632, A.L. 1945 p. 847, A.L. 1959 S.B. 160, A.L. 1978 H.B. 971, A.L. 1990 S.B. 862)