Read 1st time February 3, 2000, and 1000 copies ordered printed.
ANNE C. WALKER, Chief Clerk
AN ACT
To repeal sections 247.160, 247.215 and 247.217, RSMo 1994, and section 247.030, RSMo Supp. 1999, relating to water district debt, and to enact in lieu thereof five new sections relating to the same subject.
Section A. Sections 247.160, 247.215 and 247.217, RSMo 1994, and section 247.030, RSMo Supp. 1999, are repealed and five new sections enacted in lieu thereof, to be known as sections 247.005, 247.030, 247.160, 247.215 and 247.217, to read as follows:
247.005. Notwithstanding any other provision of law to the contrary, all debt of any water district operating pursuant to sections 247.010 to 247.227 shall be considered part of such water district's existing obligations for formation, organization, annexation, detachment or dissolution purposes, or for any other purpose whatsoever. Such debt shall follow such water district in any such formation, organization, annexation, detachment, dissolution or other proceeding, and shall be incorporated into any plan for formation, organization, annexation, detachment, dissolution or other proceeding adopted or approved pursuant to sections 247.010 to 247.227 in the same manner that general obligation bonds and other bonds are so incorporated pursuant to sections 247.010 to 247.227.
247.030. 1. Territory that may be included in a district sought to be incorporated or enlarged may be wholly within one or in more than one county, may take in school districts or parts thereof, and cities that do not have a waterworks system or cities whose governing body has by a majority vote requested that the city or part thereof be included within the boundaries of a public water supply district. For the purpose of this section, "city" means any city, town or village. The territory, however, shall be contiguous, and proceedings to incorporate shall be in the circuit court of the county in which the largest acreage is located. No two districts shall overlap.
2. Any two or more contiguous districts or any city and a contiguous district may, if there [are] is no outstanding [general obligation bonds] debt relating to drinking water supply projects in either entity or if there is a plan in place for the assumption of such outstanding debt by the annexing entity, by a majority vote of the governing body of each entity, provide for territory located in one entity to be annexed and served by the entity contiguous to the annexed territory. Notice of the proposed annexation shall be filed with the circuit court that originally issued the decree of incorporation for a district which is detaching territory through the proposed annexation or with the circuit court that originally issued the decree of incorporation for a district which is including a city or part thereof through the proposed annexation. The court shall set a date for a hearing on the proposed annexation and shall cause notice to be published in the same manner as for the filing of the original petition for incorporation; except that publication of notice shall not be required if a majority of the landowners in the territory proposed to be annexed consent in writing, and if notice of the hearing is posted in three public places within the territory proposed to be annexed at least seven days before the date of the hearing. If publication of the notice is not required pursuant to this section, the court shall only approve the proposed annexation if there is sworn testimony by at least five landowners in the area of the proposed annexation, or a majority of the landowners, if there are fewer than ten landowners in the area. If the court, after the hearing, finds that the proposed annexation would not be in the public interest, it shall order that the annexation not be allowed. If the court finds the proposed annexation to be in the public interest, it shall approve the annexation and the territory shall be detached from the one entity and annexed to the other. After the annexation is approved, the circuit court in which each district involved in the proceedings was incorporated shall amend the decree of incorporation for each district to reflect the change in the boundaries as a result of the annexation and to redivide each district into five subdistricts, fixing their boundary lines so that each of the five subdistricts have approximately the same area. A certified copy of the amended decree showing the boundary change and the new subdistricts shall be filed in the office of the recorder of deeds and in the office of the county clerk in each county having territory in the district and in the office of the secretary of state of the state of Missouri.
3. The boundaries of any district may be extended or enlarged from time to time upon the filing, with the clerk of the circuit court having jurisdiction, of a petition by either:
(1) The board of directors of the district and five or more voters within the territory proposed to be annexed by the district; or
(2) A majority of the landowners within the territory proposed to be annexed to the district.
If the petition is filed by a majority of the landowners within the territory proposed to be annexed, the publication of notice shall not be required, provided notice is posted in three public places within the territory proposed to be annexed at least seven days before the date of the hearing and provided that there is sworn testimony by at least five landowners in the territory proposed to be annexed, or a majority of the landowners if the total landowners in the area are fewer than ten. Upon the entry of a final order declaring the court's decree of annexation to be final and conclusive, the court shall modify or rearrange the boundary lines of the subdistricts as may be necessary or advisable. The costs incurred in the enlargement or extension of the district shall be taxed to the district, if the district be enlarged or extended, otherwise against the petitioners; provided, however, that no costs shall be taxed to the directors of the district.
4. Should any voter who owns real estate that abuts upon a district once formed desire to have such real estate incorporated in the district, the voter shall first petition the board of directors thereof for its approval. If such approval be granted, the clerk of the board shall endorse a certificate of the fact of approval by the board upon the petition. The petition so endorsed shall be filed with the clerk of the circuit court in which the district is incorporated. It shall then be the duty of the court to amend the boundaries of such district by a decree incorporating the real estate in the same. A certified copy of this decree including the real estate in the district shall then be filed in the office of the recorder and in the office of the county clerk of the county in which the real estate is located, and in the office of the secretary of state. The costs of this proceeding shall be borne by the petitioning property owner.
247.160. 1. Whenever all or any part of the territory of any public water supply district organized [under] pursuant to sections 247.010 to 247.220 is or has been included by annexation within the corporate limits of a municipality, the board of directors of any such district shall have the power to contract with such municipality for operating the waterworks system within such annexed area, or the board of directors, may, subject to the provisions of sections 247.160 and 247.170, lease, contract to sell, sell or convey, any or all of its water mains, plant or equipment located within such annexed area to such municipality and such contract shall also provide for the detachment and exclusion from such public water supply district of that part thereof located within the corporate limits of such city; provided, that in case of sale or conveyance, all [bonds] outstanding debt of the district, whether general obligation bonds constituting a lien on the property located within the district, [or] special obligation or revenue bonds constituting a lien on the income and revenues arising from the operation of the water system or any other type of outstanding debt of such district whatsoever:
(1) [Are] Is paid in full, or
(2) A sum sufficient to pay all of such [bonds] debt together with interest accrued or to accrue thereon, together with other items of expense provided in such [bonds] debt, is deposited with the fiscal agent named in the [bonds] written instrument acknowledging such debt, if any, for the purpose of full payment, or
(3) Such city has entered into a firm commitment to pay in lump sum or installments not less than that proportion of the sum of all existing liquidated obligations [and], of all unpaid revenue bonds[,] and of all other debt whatsoever, with interest thereon to date, of such public water supply district, as the assessed valuation of the real and tangible personal property within the area annexed bears to the assessed valuation of all the real and tangible personal property within the entire area of such district, according to the official county assessment of such property as to December thirty-first of the calendar year next preceding, or
(4) Consent in writing is obtained from the holders of all such [bonds] debt obligations.
2. In any such case in which the board of directors by agreement, leases, contracts to sell, sells or conveys the property of the district within the annexed area to such a municipality, an application shall be made by one of the contracting parties to the circuit court originally incorporating such district, which application shall set forth a description of the annexed area, that part thereof sought to be detached and excluded, a copy of the agreement entered into by the parties, the facts concerning bondholders or other creditors and their rights, and requesting an order of the court approving or disapproving such contract.
3. Upon the filing of such application, the court shall set a time for the hearing thereof and shall order a public notice setting forth the nature of the application, the annexed area affected and sought to be detached and excluded, a description of the property within the annexed area leased, contracted to be sold, sold or conveyed, and the time and place of such hearing, to be published for three weeks consecutively, in a newspaper published in the county in which the application is pending, the last publication to be not more than five days before the date set for hearing.
4. If the court finds that the agreement protects the bondholders' and other creditors' rights and provides for the rendering of necessary water service in the territory embracing the district, then such agreement shall be fully effective upon approval by the court. Such decree shall also thereupon vest in said city the absolute title, free and clear of all liens or encumbrances of every kind and character, to all tangible real and personal property of such public water supply district located within the part of such district situated within the corporate limits of such city, with full power in such city to use and dispose of such tangible real and personal property as it deems best in the public interest.
247.215. 1. The board of directors of any public water supply district which is dependent upon purchases of water to supply its needs may sell and convey part or all of its water mains, plant, real estate, or equipment to any water corporation as defined in section 386.020, RSMo, if all [bonds] outstanding debt of the district, whether general obligation bonds constituting a lien on the property within the district [or], special obligation or revenue bonds constituting a lien on the income and revenues arising from the operation of the water system, or any other type of outstanding debt of such district whatsoever:
(1) [Are] Is to be paid in full, or
(2) A sum sufficient to pay all of such [bonds] debt together with interest accrued or to accrue thereon, together with all other items of expense incident to the payment of such [bonds] debt, shall be set aside from the proceeds of said sale and deposited with the fiscal agent named in the [bonds] written instrument acknowledging such debt, if any, for the purpose of full payment.
2. After the board of directors of any public water supply district has entered into a contract to sell part or all of its water mains, plant, real estate or equipment, pursuant to this section, an application shall be made by said board of directors to the circuit court which originally incorporated the district, which application shall set forth a copy of the contract entered into by the parties, and the facts concerning the bondholders or other creditors and their rights, and requesting an order of the court approving or disapproving the contract.
3. Upon the filing of the application, the court shall set a time for the hearing thereof and shall order a public notice setting forth the nature of the application, a description of the property to be sold, and the time and place for the hearing, to be published for three weeks consecutively, in a newspaper of general circulation in the county in which the application is pending, the last publication to be not more than five days before the date set for the hearing.
4. If the court finds that the contract provides for the sale of all of the mains, plants, real estate and equipment of the district and protects the bondholders' and other creditors' rights, and also provides for the rendering of the necessary water service in the territory embracing the district, and is in the best interest of the residents and property owners of the district, it shall, by its decree, approve the contract and order dissolution of the district, provided that such dissolution is assented to by a two-thirds majority of the voters of the district, voting on the question and provided further, that the dissolution of the district shall not become final until after all its debts have been paid and the disposition of funds of the district has been fully carried out as hereinafter provided to the satisfaction of the court, after which a final decree may be entered.
5. Such water supply district shall not be finally dissolved, upon the sale of all of its assets, until final liquidation thereof and until the trustees of the district have first paid to the collector of the county, or counties, in which the district is located all of its remaining funds which shall be applied pro rata toward the payment and satisfaction of the taxes of the residents and property owners of the district on their respective personal and real property tax bills for the next ensuing year or years. In the event that the sum of money so paid to the collector would amount to less than the equivalent of one cent reduction in the tax rate and thus impose upon the collector a cost burden in excess of the money so paid, then and in that event said funds shall be paid over to the treasurer of the various school districts having real estate within the said water supply district in the ratio that the assessed valuation of such school district bears to the whole assessed valuation of the water supply district.
247.217. 1. Any two or more contiguous public water supply districts organized [under] pursuant to the provisions of sections 247.010 to 247.220 may be consolidated into a single district by a decree of the circuit court in which the district with the largest acreage was originally incorporated and organized.
2. Proceedings for consolidation of such districts shall be substantially as follows: The board of directors of each of the districts to be consolidated shall authorize, by resolution passed at a regular meeting or a special meeting called for such purpose, its president, on behalf of the district, to petition the circuit court having jurisdiction for consolidation with any one or more other contiguous public water supply districts.
3. Such petition shall be filed in the circuit court having jurisdiction and the court shall set a date for a hearing thereon and the clerk shall give notice thereof in some newspaper of general circulation in each county in which each of the districts proposed to be consolidated is located.
4. Such notice shall be substantially as follows:
IN THE CIRCUIT COURT OF ......
COUNTY, MISSOURI
NOTICE OF THE FILING OF A PETITION FOR
CONSOLIDATION OF PUBLIC WATER SUPPLY
DISTRICT NO. ......, OF ...... COUNTY,
MISSOURI, AND PUBLIC WATER SUPPLY DISTRICT
NO. ......, OF ...... COUNTY, MISSOURI
(Additional districts may be named as required.)
To all voters within the boundaries of the above-described public water supply districts:
You are hereby notified:
1. That a petition has been filed in this court for the consolidation of the above-named public water supply districts into one public water supply district, as provided by law.
2. That a hearing on said petition will be held before this court on the ...... day of ......, [19]...., at ...., ....m.
3. Exceptions or objections to the consolidation of said districts may be made by any voters of any of such districts proposed to be consolidated, provided such exceptions or objections are filed in writing not less than five days prior to the date set for the hearing on the petition.
4. The names and addresses of the attorneys for the petitioner are:
.............................
Clerk of the Circuit Court of
............ County, Missouri
5. The notice shall be published in three consecutive issues of a weekly newspaper in each county in which any portion of any district proposed to be consolidated lies, or in lieu thereof, in twenty consecutive issues of a daily newspaper in each county in which any portion of any district proposed to be consolidated lies; the last insertion of such notice to be made not less than seven nor more than twenty-one days before the hearing.
6. The court, for good cause shown, may continue the case or the hearing thereon from time to time until final disposition thereof.
7. Exceptions or objections to the consolidation of such districts may be made by any voter within the boundaries of the proposed district. The exceptions or objections shall be in writing and shall specify the grounds upon which the same are made and shall be filed not later than five days before the date set for hearing the petition. If any such exceptions or objections are filed, the court shall take them into consideration in passing upon the petition for consolidation and shall also consider the evidence in support of the petition. If the court finds that the consolidation will provide for the rendering of necessary water service in the districts, and is in the best interest of the voters of the district, it shall, by its decree, approve such consolidation. The decree of consolidation shall set an effective date for the consolidation of the districts and shall provide that the proposed consolidated district shall be divided into five subdistricts and shall fix boundary lines of each subdistrict, all of which subdistricts shall have approximately the same area and shall be numbered.
8. The decree of consolidation shall not become final and conclusive until it has been submitted to voters in each of the districts proposed to be included in the consolidated district.
9. If, upon canvass and declaration of the results, it is found and determined that the question has been assented to by a majority of the voters of each district voting on the question, the court shall issue its order declaring the results of the elections, declaring its previous decree of consolidation to be final and conclusive, and in addition, the decree shall provide for an election of a director from each of the subdistricts set forth in the decree of the court as specified in subsection 7 of this section. The terms of office for the directors elected at such election shall be as follows: The director elected from the subdistrict designated by the circuit court as number one shall serve until the next regular election, or until his successor has been elected and qualified; those directors elected from the subdistricts designated by the circuit court as numbers two and three shall serve until the regular election following the next regular election or until their successors have been elected and qualified; those directors elected from the subdistricts designated by the circuit court as numbers four and five shall serve until the annual regular election following the next two regular elections, or until their successors have been elected and qualified. Thereafter all directors shall be elected as provided by sections 247.010 to 247.220. The election shall be held at least thirty days before the effective date of the consolidation. The returns shall be certified by the judges and clerks of election to the circuit court having jurisdiction and the court shall thereupon enter its order naming the directors from each subdistrict.
10. The eligibility and requirements for a director for a consolidated district shall be identical with those set forth in section 247.060 and no two members of the board shall reside in the same subdistrict. Any candidate shall have his name imprinted upon the ballot, provided he shall file a declaration of intention to become such a candidate with the clerk of the circuit court.
11. In its final decree, the court shall designate a name for the consolidated district which shall be as follows: Consolidated Public Water Supply District No. ......, of ...... County, Missouri.
12. On the effective date of the consolidation of the districts, the newly elected directors shall organize in the same manner as is provided in sections 247.010 to 247.220, and all of such provisions shall apply to consolidated public water supply districts in the same manner as to other public water supply districts.
13. At the time of the effective date of the consolidation, all the property of the original districts shall be combined and administered as one unit, which shall be subject to the liens, liabilities and obligations of the original districts, provided that if any district included in the consolidated district has issued general obligation bonds which are outstanding at the time of the consolidation, any taxes to be levied to pay the bonds and interest thereon shall be levied only upon the property within the original district issuing the bonds as it existed on the date of such issuance. All prior debt of any district included in the consolidated district, including but not limited to special obligation or revenue bonds issued by any district included in the consolidated district, shall be paid in accordance with the terms thereof, without preference, from the revenue received by the consolidated district.
14. A certified copy of the decrees of the court shall be filed in the office of the recorder and in the office of the county
clerk in each county in which any part of the consolidated district is located, and in the office of the secretary of state. Such
copies shall be filed by the clerk of the circuit court and the filing fees shall be taxed as costs.
Missouri House of Representatives