§ 160A-58.2A. Assumption of debt.

§ 160A‑58.2A. Assumption of debt.

(a)        If the city has annexed under this Part any area which isserved by a rural fire department and which is in:

(1)        An insurance district defined under G.S. 153A‑233;

(2)        A rural fire protection district under Article 3A of Chapter69 of the General Statutes; or

(3)        A fire service district under Article 16 of Chapter 153A ofthe General Statutes,

thenbeginning with the effective date of annexation the city shall pay annually aproportionate share of any payments due on any debt (including principal andinterest) relating to facilities or equipment of the rural fire department, ifthe debt was existing at the time of submission of the petition for annexationto the city under this Part.  The rural fire department shall make available tothe city not later than 30 days following a written request from the city,information concerning such debt.  The rural fire department forfeits itsrights under this section if it fails to make a good faith response within 45days following receipt of the written request for information from the city,provided that the city's written request so states by specific reference tothis section.

(b)        The annual payments from the city to the rural firedepartment on such shared debt service shall be calculated as follows:

(1)        The rural fire department shall certify to the city eachyear the amount that will be expended for debt service subject to be shared bythe city as provided by subsection (a) of this section; and

(2)        The amount determined under subdivision (1) of thissubsection shall be multiplied by the percentage determined by dividing theassessed valuation of the area of the district annexed by the assessedvaluation of the entire district, each such valuation to be fixed as of thedate the annexation ordinance becomes effective.

(c)        This section does not apply in any year as to any annexedarea(s) for which the payment calculated under this section as to allannexation ordinances adopted under this Part by a city during a particularcalendar year does not exceed one hundred dollars ($100.00).

(d)        The city and rural fire department shall jointly present apayment schedule to the Local Government Commission for approval and no paymentmay be made until such schedule is approved.  The Local Government Commissionshall approve a payment schedule agreed upon between the city and the ruralfire department in cases where the assessed valuation of the district may notreadily be determined, if there is a reasonable basis for the agreement. (1989, c. 598, s. 3.)