247.215. District which purchases water may convey property to water company--procedure--election--liquidation of district.
District which purchases water may convey property to watercompany--procedure--election--liquidation of district.
247.215. 1. The board of directors of any public watersupply district which is dependent upon purchases of water tosupply its needs may sell and convey part or all of its watermains, plant, real estate, or equipment to any water corporationas defined in section 386.020, RSMo, if all bonds of thedistrict, whether general obligation bonds constituting a lien onthe property within the district or special obligation or revenuebonds constituting a lien on the income and revenues arising fromthe operation of the water system:
(1) Are to be paid in full, or
(2) A sum sufficient to pay all of such bonds together withinterest accrued or to accrue thereon, together with all otheritems of expense incident to the payment of such bonds, shall beset aside from the proceeds of said sale and deposited with thefiscal agent named in the bonds for the purpose of full payment.
2. After the board of directors of any public water supplydistrict has entered into a contract to sell part or all of itswater mains, plant, real estate or equipment, pursuant to thissection, an application shall be made by said board of directorsto the circuit court which originally incorporated the district,which application shall set forth a copy of the contract enteredinto by the parties, and the facts concerning the bondholders andtheir rights, and requesting an order of the court approving ordisapproving the contract.
3. Upon the filing of the application, the court shall set atime for the hearing thereof and shall order a public noticesetting forth the nature of the application, a description of theproperty to be sold, and the time and place for the hearing, tobe published for three weeks consecutively, in a newspaper ofgeneral circulation in the county in which the application ispending, the last publication to be not more than five daysbefore the date set for the hearing.
4. If the court finds that the contract provides for thesale of all of the mains, plants, real estate and equipment ofthe district and protects the bondholders' rights, and alsoprovides for the rendering of the necessary water service in theterritory embracing the district, and is in the best interest ofthe residents and property owners of the district, it shall, byits decree, approve the contract and order dissolution of thedistrict, provided that such dissolution is assented to by atwo-thirds majority of the voters of the district, voting on thequestion and provided further, that the dissolution of thedistrict shall not become final until after all its debts havebeen paid and the disposition of funds of the district has beenfully carried out as hereinafter provided to the satisfaction ofthe court, after which a final decree may be entered.
5. Such water supply district shall not be finallydissolved, upon the sale of all of its assets, until finalliquidation thereof and until the trustees of the district havefirst paid to the collector of the county, or counties, in whichthe district is located all of its remaining funds which shall beapplied pro rata toward the payment and satisfaction of the taxesof the residents and property owners of the district on theirrespective personal and real property tax bills for the nextensuing year or years. In the event that the sum of money sopaid to the collector would amount to less than the equivalent ofone cent reduction in the tax rate and thus impose upon thecollector a cost burden in excess of the money so paid, then andin that event said funds shall be paid over to the treasurer ofthe various school districts having real estate within the saidwater supply district in the ratio that the assessed valuation ofsuch school district bears to the whole assessed valuation of thewater supply district.
(L. 1957 p. 583, A.L. 1978 H.B. 971)