COMPILED CODE - Iowa Legislature - State of Iowa

275
Tit. XIII, Ch. 29. PURCHASE OF WATERWORKS BY CITIES. §§ 3997-4005.
CHAPTER 29.
PURCHASE OF WATERWORKS BY CITIES OF ONE HUNDRED THOUSAND OR
OVER.
SECTION 3997. Anticipation of tax—trust.
1 Any such city desiring to own, construct, erect, acquire, purchase,
2 establish and maintain such waterworks may issue bonds in anticipa-
3 tion of the special tax authorized in section thirty-nine hundred ninety-
4 six of the compiled code. Such bonds shall be known as public service
5 bonds, and said bonds and interest thereon shall be secured by said
6 assessment and levy and (unless otherwise paid out of the surplus
7 income derived from the operation of the waterworks) shall be pay-
8 able only out of the proceeds thereof pledged to the payment of the
9 same, and shall be issued and sold in accordance with the provisions
10 of chapter thirty-four, title thirteen, except as herein otherwise pro-
11 vided. In issuing such bonds, the city council may cause portions of
12 the same to become due at different definite periods, but none of such
13 bonds so issued shall be payable more than fifty years from their date.
14 It shall be the duty of the city treasurer to collect and receive said tax
15 and to hold the same separate and apart in trust for the payment of
16 said bonds and interest, and to apply the proceeds of said tax pledged
17 for that purpose to the payment of said bonds and interest. Said
18 bonds shall be issued in sums of not less than one hundred dollars nor
19 more than one thousand dollars, each running not more than fifty
20 years, and bearing interest not exceeding six per cent per annum,
21 payable semiannually.
[38 G. A., ch. 288, § 4; 39 G. A., ch. 82, § 1.]
SEC 4003. Bules—records—accounts—financial statement.
1 The board shall immediately after its organization make and pre-
2 scribe all the necessary rules for the government of the waterworks,
3 and prescribe the form of records and the kind of accounts to be made
4 and kept in the operation of such waterworks. It shall institute and
5 require the keeping of a uniform and perfected system of accounts
6 and requisitions showing the purchase, storing and use of materials
7 for operation, construction £nd other purposes. Said accounts shall
8 be kept distinct and separate from other city accounts, and in such
9 manner as to show the true and complete financial results of the opéralo
tion of said waterworks. The board shall at least once a year cause
11 to be prepared and printed for public distribution a full and complete
12 financial report. The account of such waterworks shall be examined
13 at least once a year by an expert accountant selected by the city council.
[38 G. A., ch. 288, § 10; 39 G. A., ch. 82, § 3.]
SEC 4005. Mortgage—restriction—rate of interest.
1 In addition to all the powers hereinbefore granted such cities
2 shall have the right to mortgage or bond such waterworks and pledge
3 the net revenues thereof to secure the payment of the purchase price,
4 and the extension and improvement thereof, but no part of the general
5 fund of such cities shall be applied upon such contracts, bonds or mort-
6 gages. In the payment of the securities authorized to be issued by
7 this section the city and holders thereof, shall be restricted to the