A. Whenever the board of a district shall, by resolution, determine that interest or necessity requires the acquisition, construction, repair, extension, improvement or betterment of a water system, sewer system or other fee-for-service system, districts are authorized to issue revenue bonds or obtain loans, payable solely out of the net income, to be derived from the operation of a publicly owned water system or sewer system or from services rendered by the district for a fee, and to pledge, irrevocably, the income to the payment of the bonds.
B. The proceeds of the bonds are to be used solely for the purchasing, acquiring, constructing and making of necessary improvements, extensions, repairs and betterments of the water system, sewer system or other fee-for-service system for the purchase and acquiring of wells, cisterns, reservoirs or other sources of water supply and pumping plants, sewage disposal plants or other machinery necessary for the operation of those facilities and the land and real estate upon which those facilities are situated or to be situated.
C. Joint revenue bonds may be issued for the acquisition, construction, extension, enlargement or betterment of a joint water system and joint sewer system or other joint fee-for-service system and the income of one or more of the utilities may be pledged to secure the repayment of the joint bonds.
History: 1941 Comp., § 77-3433, enacted by Laws 1951, ch. 195, § 1; 1953 Comp., § 75-18-33; 1978 Comp., § 73-21-36; 2009, ch. 241, § 5.
The 2009 amendment, effective June 19, 2009, in Subsection A, after "sewer system", added "or other fee-for-service system"; after "issue revenue bonds", added "or obtain loans"; and after "water system or sewer", added "system or from services rendered by the district for a fee"; in Subsection B, after "sewer system or", added "other fee-for-service system"; and in Subsection C, after "sewer system", added "or other joint fee-for-service system".
Am. Jur. 2d, A.L.R. and C.J.S. references. — 39A C.J.S. Health and Environment § 56.
Structure New Mexico Statutes
Chapter 73 - Special Districts
Article 21 - Water and Sanitation Districts
Section 73-21-1 - [Declaration of purpose.]
Section 73-21-2 - Short title.
Section 73-21-3 - Purpose of water and sanitation districts.
Section 73-21-4 - Definitions.
Section 73-21-5 - Organization of district.
Section 73-21-7 - Bond of petitioners.
Section 73-21-8 - Notice of hearing on petition.
Section 73-21-9 - Hearing on petitions; election for organization and officers.
Section 73-21-10 - Filing decree.
Section 73-21-11 - [Board of directors; qualification; bond.]
Section 73-21-15 - Board increase; appointed members.
Section 73-21-15.1 - Appointment of first board.
Section 73-21-16 - General powers.
Section 73-21-18 - Levy and collection of taxes.
Section 73-21-19 - Levies to cover defaults and deficiencies.
Section 73-21-20 - Officers levy and collect taxes.
Section 73-21-21 - Sale for delinquencies; purchase by district.
Section 73-21-22 - Sinking fund.
Section 73-21-23 - Inclusion [of additional property].
Section 73-21-24 - Exclusion [from district].
Section 73-21-25 - Liability of property included or excluded.
Section 73-21-26 - Bonds; interest; form.
Section 73-21-27 - Community Service District Act provisions apply.
Section 73-21-28 - Board resolution; indebtedness; election.
Section 73-21-31 - Effect of election; subsequent elections.
Section 73-21-32 - Correction of faulty notices.
Section 73-21-33 - Early hearings.
Section 73-21-34 - Liberal construction.
Section 73-21-35 - Character of act.
Section 73-21-36 - Acquisition, construction or improvement of systems; joint revenue bonds.
Section 73-21-37 - Interest; maturity; form; method of sale.
Section 73-21-38 - Revenue bond issuance.
Section 73-21-39 - Bonds collectible from operating revenues.
Section 73-21-40 - Rates; bondholders' remedy and taxpayer elector.
Section 73-21-41 - Restricted use of bond funds.
Section 73-21-42 - Violations; penalties.
Section 73-21-43 - Validation; existing districts.
Section 73-21-44 - Sale of system; escrow of proceeds.
Section 73-21-45 - Refunding bonds.
Section 73-21-46 - Limitations upon issuance.
Section 73-21-47 - Proceeds of refunding bonds.
Section 73-21-48 - Refunding bonds; detail; form.
Section 73-21-49 - Combination of issues.
Section 73-21-50 - Tax levy for general obligation refunding bonds.
Section 73-21-51 - Applicability of other bond provisions.
Section 73-21-52 - Duties of local government division.
Section 73-21-53 - Use of bond proceeds restricted.
Section 73-21-54 - Board's determination final.
Section 73-21-55 - Districts not subject to utility laws; option to submit to regulation.