1999 Wisconsin Act 150

1. The proportion of revenues of the public improvement necessary for the reasonable and proper operation and maintenance thereof; and of the public improvement.

2. The proportion of revenues necessary for the payment of debt service on the public improvement bonds. Such The revenues shall be paid into a special fund in the treasury of the municipality known as the "Public Improvement Bond Account".

(c) All funds on deposit in a public improvement bond account, which are not immediately required for the purposes specified in this section, shall be invested in accordance with s. 66.04 66.0605.

(5) Annually, on or before August 1 the officer or department of the municipality responsible for the operation of the public improvement shall file with the governing body, or its designated representative, a detailed statement setting forth the amount of the debt service on the public improvement bonds issued for the public improvement for the succeeding calendar year and an estimate for such that year of the total revenues to be derived from the ownership and operation of the public improvement and the total cost of operating and maintaining the public improvement.

(6) (a) If it is determined that there will be a deficiency for the ensuing calendar year, the municipality shall make up the deficiency, but the obligation to do so shall be is limited to a sum which shall does not cause the municipality to exceed its municipal debt limits. The deficiency may be made up by the municipality from any revenues available therefor revenues, including a tax levy. The amount contributed by the municipality shall be deposited in the public improvement bond account and applied to the payment of debt service. Taxes levied under this paragraph shall are not be subject to statutory limitations of rate or amount.

(b) The amount of any deficiency determined under par. (a) for the ensuing calendar year shall be related to the total debt service for such that year. Such The ratio shall determine determines the outstanding indebtedness of the issue to be reflected as part of the municipality's indebtedness for the year.

(7) Whenever If revenue bonds have been issued by a municipality pursuant to law and an ordinance authorizing their issuance without limitation as to amount has been enacted by the governing body of the municipality, public improvement bonds may be issued under the ordinance with the same effect as though they were revenue bonds. Such The bonds shall be are public improvement bonds and this section shall apply thereto applies to the bonds, except that nothing contained in this subsection shall in any way impair the contract between the municipality and the holders of any outstanding revenue bonds. Whatever liens have been Liens created in favor of any outstanding revenue bonds issued under the ordinance shall apply to public improvement bonds so issued under this subsection. The public improvement bonds shall be are payable on a parity with the revenue bonds issued under the ordinance if the public improvement bonds are issued in compliance with the requirements of the ordinance for the issuance of parity bonds under the ordinance.

150,163 Section 163 . 66.06 of the statutes is repealed.

Note: Replaced by s. 66.0725, created by Section 235.

150,164 Section 164. Subchapter VI (title) of chapter 66 [precedes 66.0601] of the statutes is created to read:

Chapter 66

Subchapter VI
Finance; Revenues

150,165 Section 165. 66.0601 (1) (title) of the statutes is created to read:

66.0601 (1) (title) Prohibited appropriations.

150,166 Section 166. 66.0601 (1) (b) (title) of the statutes is created to read:

66.0601 (1) (b) (title) Payments for abortions restricted.

150,167 Section 167. 66.0601 (1) (c) (title) of the statutes is created to read:

66.0601 (1) (c) (title) Payments for abortion-related activity restricted.

150,168 Section 168. 66.0603 (title) of the statutes is created to read:

66.0603 (title) Investments.

150,169 Section 169. 66.061 of the statutes is renumbered 66.0815, and 66.0815 (title), (1) (a), (c) and (d) and (2), as renumbered, are amended to read:

66.0815 (title) Franchises; Public utility franchises and service contracts. (1) (a) Any A city, village or town may grant to any person or corporation the right to construct and operate therein a water system or to furnish light, heat or power a public utility in the city, village or town, subject to reasonable rules and regulations prescribed by ordinance.

Note: Expands the franchise authority under sub. (1) to include any public utility.

(c) No such ordinance shall be operative An ordinance under sub. (1) may not take effect until 60 days after passage and publication unless sooner approved by a referendum. Within that time the 60-day period electors equal in number to 20 per cent 20% of those voting at the last regular municipal election, may demand petition for a referendum. The demand petition shall be in writing and filed with the clerk. Each signer shall state his or her occupation and residence and signatures shall be verified by the affidavit of an elector. The referendum shall be held at the next regular municipal election, or at a special election within 90 days of the filing of the demand, and the petition. The ordinance shall may not be effective take effect unless approved by a majority of the votes cast thereon. This paragraph shall does not apply to extensions by a utility previously franchised by the village or, city or town.

(d) Whenever any If a city or village at the time of its incorporation included within its corporate limits territory in which a public utility, prior to such before the incorporation, had been lawfully engaged in rendering public utility service, such the public utility shall be deemed to possess possesses a franchise to operate in such the city or village to the same extent as though such if the franchise had been formally granted by ordinance duly adopted by the governing body of such the city or village. This paragraph shall does not apply to any public utility organized under this chapter.

(2) Service contracts. (a) Cities, villages and towns A city, village or town may contract for furnishing light, heat, water, or motor bus or other systems of public transportation to the municipality or to the its inhabitants thereof for a period of not more than 30 years or for an indeterminate period if the prices are subject to adjustment at intervals of not greater than 5 years. The public service commission shall have has jurisdiction relative to over the rates and service to any city, village or town where light, heat or water is furnished to such the city, village or town under any contract or arrangement, to the same extent that the public service commission has jurisdiction where that service is furnished directly to the public.

(b) When a city, village or town has contracted for water, lighting service, or motor bus or other systems of public transportation to the municipality the cost may be raised by tax levy. In making payment to the owner of the utility a sum equal to the amount due the city, village or town from such the owner for taxes or special assessments may be deducted.

(c) This subsection shall apply applies to every city, village and town regardless of any charter limitations on the tax levy for water or light.

(d) When any If a privately owned motor bus or public transportation system in a city, village or town fails to provide service for a period in excess of 30 days, and the owner or stockholders of the privately owned motor bus or public transportation system have announced an intention to abandon service, the governing body of the affected municipality may without referendum furnish or contract for the furnishing of other motor bus or public transportation service to the municipality and its inhabitants and to the users of the defaulting prior service for a period of not more than one year. This section shall paragraph does not authorize a municipality to hire, directly or indirectly, any strikebreaker or other person for the purpose of replacing employes of said the motor bus or public transportation system engaged in a strike.

150,170 Section 170 . 66.0627 of the statutes is created to read:

66.0627 Special charges for current services. (1) In this section, "service" includes snow and ice removal, weed elimination, street sprinkling, oiling and tarring, repair of sidewalks or curb and gutter, garbage and refuse disposal, recycling, storm water management, including construction of storm water management facilities, tree care, removal and disposition of dead animals under s. 60.23 (20), soil conservation work under s. 92.115, and snow removal under s. 86.105.

(2) Except as provided in sub. (5), the governing body of a city, village or town may impose a special charge against real property for current services rendered by allocating all or part of the cost of the service to the property served. The authority under this section is in addition to any other method provided by law.

(3) (a) Except as provided in par. (b), the governing body of the city, village or town may determine the manner of providing notice of a special charge.

(b) Before a special charge for street tarring or the repair of sidewalks, curbs or gutters may be imposed, a public hearing shall be held by the governing body on whether the service in question will be funded in whole or in part by a special charge. Any interested person may testify at the hearing. Notice of the hearing shall be by class 1 notice under ch. 985, published at least 20 days before the hearing. A copy of the notice shall be mailed at least 10 days before the hearing to each interested person whose address is known or can be ascertained with reasonable diligence. The notice under this paragraph shall state the date, time and location of the hearing, the subject matter of the hearing and that any interested person may testify.

(4) A special charge is not payable in instalments. If a special charge is not paid within the time determined by the governing body, the special charge is delinquent. A delinquent special charge becomes a lien on the property against which it is imposed as of the date of delinquency. The delinquent special charge shall be included in the current or next tax roll for collection and settlement under ch. 74.

(5) Except with respect to storm water management, including construction of storm water management facilities, no special charge may be imposed under this section to collect arrearages owed a municipal public utility.

(6) If a special charge imposed under this section is held invalid because this section is found unconstitutional, the governing body may reassess the special charge under any applicable law.

Note: Restates s. 66.60 (16), relating to special charges, and renumbers the provision to make it a separate section within ch. 66.

In addition:

1. Expands the examples in the definition of "service" to expressly include removal and disposition of dead animals under s. 60.23 (20), conservation work under s. 92.115 [as renumbered by this bill] and snow removal under s. 86.105. Previously, these services were authorized to be funded by special assessment under s. 66.345, repealed by this bill. See Section 372 of this bill.

2. Expands the examples in the definition of "service" to expressly include "recycling" to reflect prevailing interpretation and current practice.

150,171 Section 171 . 66.064 of the statutes is renumbered 66.0807 and amended to read:

66.0807 Joint operation of public utility or public transportation system. Any

(2) A city, village or town served by any a privately owned public utility, motor bus or other systems of public transportation rendering local service may contract with the owner thereof of the utility or system for the leasing, public operation, joint operation, extension and improvement of the utility or system by the municipality ; or, with funds loaned by the municipality, may contract for the stabilization by municipal guaranty of the return upon or for the purchase by instalments out of earnings or otherwise of that portion of said the public utility or system which is operated within such the municipality and any territory immediately adjacent and tributary thereto to the municipality; or may contract for the accomplishment of any object agreed upon between the parties relating to the use, operation, management, value, earnings, purchase, extension, improvement, sale, lease or control of such the utility or system property. The provisions of s. 66.07 66.0817 relating to preliminary agreement, and approval by the department of transportation or public service commission, and ratification by the electors, shall be applicable apply to the contracts authorized by this section. The department of transportation or public service commission shall, when any such a contract under this section is approved by it and consummated, cooperate with the parties in respect to making valuations, appraisals, estimates and other determinations specified in such the contract to be made by it.

Note: In order to facilitate public-private cooperation, deletes the referendum requirement for preliminary contracts.

See, also, Section 237 .

150,172 Section 172. 66.065 (title) of the statutes is renumbered 66.0803 (title) and amended to read:

66.0803 (title) Acquisition of public utility or bus transportation system.

150,173 Section 173. 66.065 (1), (2), (3), (4) and (4a) of the statutes are renumbered 66.0803 (1) (a), (b), (c), (d) and (e), and 66.0803 (1) (a) and (c) to (e), as renumbered, are amended to read:

66.0803 (1) (a) Any A town, village or city may construct, acquire or lease any plant and equipment located within or without in or outside the municipality, and including interest in or lease of land, for furnishing water, light, heat, or power, to the municipality, or to its inhabitants; may acquire a controlling portion of the stock of any corporation owning private waterworks or lighting plant and equipment; and may purchase the equity of redemption in a mortgaged or bonded waterworks or lighting system, including the cases where the municipality shall in the franchise have has reserved right to purchase. The character or duration of the franchise, permit or grant under which any public utility is operated, shall does not affect the power to acquire the same hereunder public utility under this subsection. Two or more public utilities owned by the same person or corporation, or 2 or more public utilities subject to the same lien or charge, may be acquired as a single enterprise under any proceeding heretofore begun or hereafter commenced, and the. The board or council may at any time agree with the owner or owners of any public utility or utilities as to on the agreed value thereof, of the utility or utilities and to may contract to purchase or acquire the same hereunder at such that value, upon such those terms and conditions as may be mutually agreed upon between said the board or council and said the owner or owners.

(c) The notice of the referendum shall include a general statement of the plant and equipment or part thereof it is proposed to acquire or construct be constructed, acquired or leased and of the manner of payment.

(d) Referendum elections Referenda under this section shall may not be held oftener than once a year, except that a referendum so held for the acquisition, lease or construction of any of the types of property enumerated in sub. (1) shall par. (a) does not bar the holding of one referendum in the same year for the acquisition and operation of a bus transportation system by the municipality.

(e) The provisions of subs. (2), (3) and (4) shall pars. (b) to (d) do not apply to the acquisition of any plant, equipment or public utility for furnishing water service when such the plant, equipment or utility is acquired by the municipality by dedication or without monetary or financial consideration. After a public utility is constructed, acquired or leased under this subsection, pars. (b) to (d) do not apply to any subsequent construction, acquisition or lease in connection with that public utility.

Note: The 2nd sentence of par. (e) clarifies that once a successful referendum is held on a public utility acquisition, construction or lease, no additional referenda are required for any subsequent construction, acquisition or lease in connection with that public utility.

150,174 Section 174. 66.065 (5), (6) and (7) of the statutes are renumbered 66.0803 (2) (a) to (c) and amended to read:

66.0803 (2) (a) Any A city, village or town may by action of its governing body and with a referendum vote provide, acquire, own, operate or engage in a municipal bus transportation system where no existing bus, rail or other local transportation system exists in such the municipality. Any A city, village or town in which there exists any local transportation system by similar action and referendum vote may acquire, own, operate or engage in the operation of a municipal bus transportation system upon acquiring the local transportation system by voluntary agreement with the owners thereof of the system, or pursuant to law, or upon securing a certificate from the department of transportation under s. 194.23.

(b) Any A street motor bus transportation company operating pursuant to ch. 194 shall, by acceptance of authority under that chapter, be deemed to have consented to a purchase of its property actually used and useful for the convenience of the public by the municipality in which the major part of such the property is situated or operated.

(c) Any A city, village or town providing or acquiring a motor bus transportation system under the provisions of this section may finance such the construction or purchase in any manner now authorized in respect of for the construction or purchase of a public utility.

150,175 Section 175. 66.066 (title), (1) to (1m) and (2) (intro.) and (a) to (i) of the statutes are renumbered 66.0621 (title), (1) to (3) and (4) (intro.) and (a) to (i), and 66.0621 (1) (a) and (b), (2), (3) and (4) (intro.) and (a) to (i), as renumbered, are amended to read:

66.0621 (1) (a) "Municipality" means any a city, village, town, county, commission created by contract under s. 66.30 66.0301, public inland lake protection and rehabilitation district established under s. 33.23, 33.235 or 33.24, metropolitan sewerage district created under ss. 66.20 to 66.26 or 66.88 to 66.918 200.01 to 200.15 and 200.21 to 200.65, town sanitary district under subch. IX of ch. 60, a local professional baseball park district created under subch. III of ch. 229 or a municipal water district or power district under ch. 198 and any other public or quasi-public corporation, officer, board or other public body empowered to borrow money and issue obligations to repay the same money and obligations out of revenues. "Municipality" does not include the state or a local exposition district created under subch. II of ch. 229.

(b) For purposes of financing under this section, "public "Public utility" means any revenue producing facility or enterprise owned by a municipality and operated for a public purpose as defined in s. 67.04 (1) (b) or undertaken by a municipality under s. 66.067 including garbage incinerators, toll bridges, swimming pools, tennis courts, parks, playgrounds, golf links, bathing beaches, bathhouses, street lighting, city halls, village halls, town halls, courthouses, jails, schools, cooperative educational service agencies, hospitals, homes for the aged or indigent, child care centers, as defined in s. 231.01 (3c), regional projects, waste collection and disposal operations, sewerage systems, local professional baseball park facilities and any other necessary public works projects undertaken by a municipality.

(2) Nothing in this This section shall be construed to does not limit the authority of any a municipality to acquire, own, operate and finance in the manner provided in this section a source of water and necessary transmission facilities, including all real and personal property, beyond its corporate limits. A source of water 50 miles beyond a municipality's corporate limits shall be within the municipality's authority.

(3) Any A municipality may, by action of its governing body, provide for purchasing, acquiring, leasing, constructing, extending, adding to, improving, conducting, controlling, operating or managing a public utility, motor bus or other systems of public transportation from the general fund, or from the proceeds of municipal obligations, including revenue bonds. Any An obligation created pursuant to subs. (2) to (4) shall under sub. (4) or (5) is not be considered an indebtedness of such the municipality, and shall not be included in arriving at the constitutional debt limitation.

(4) (intro.) Where If payment of obligations is provided by revenue bonds, the following is the procedure for payment shall be in the manner following:

(a) 1. The governing body of the municipality, by ordinance or resolution, shall order the issuance and sale of bonds, executed as provided in s. 67.08 (1) and payable at such times not exceeding 40 years from the date thereof of issuance, and at such places, as that the governing body of such the municipality shall determine, which determines. The bonds shall be payable only out of the special redemption fund. Each such bond shall include a statement that it is payable only from the special redemption fund, naming the ordinance or resolution creating it, and that it does not constitute an indebtedness of such the municipality. The bonds may be issued either as registered bonds under s. 67.09 or as coupon bonds payable to bearer. Bonds shall be sold in such the manner and upon such the terms as determined by the governing body deems for the best interests of said the municipality.

2. Interest, if any, on bonds shall be paid at least annually to bondholders. Payment of principal on the bonds shall commence not later than 3 years after the date of issue or 2 years after the estimated date that construction will be completed, whichever is later. Thereafter After the commencement of the payment of principal on the bonds, at least annually, the municipality shall make principal payments and, if any, interest payments to bondholders or provide by ordinance or resolution that payments be made into a separate fund for payment to bondholders as specified in the ordinance or resolution authorizing the issuance of the bonds. The amount of the annual debt service payments made or provided for shall be reasonable in accordance with prudent municipal utility management practices.

3. All such revenue bonds may contain a provision authorizing redemption thereof of the bonds, in whole or in part, at stipulated prices, at the option of the municipality on any interest payment date. The governing body of a municipality may provide in any a contract for purchasing, acquiring, leasing, constructing, extending, adding to, improving, conducting, controlling, operating or managing a public utility, that payment thereof shall be made in such bonds at not less than 95% of the par value thereof of the bonds.

(b) All moneys received from any bonds issued under this section shall be applied solely for purchasing, acquiring, leasing, constructing, extending, adding to, improving, conducting, controlling, operating or managing a public utility, and in the payment of the cost of any subsequent necessary additions, improvements and extensions. Bonds issued under this section shall be secured by a pledge of the revenues of the public utility to the holders of the bonds and to the holders of any coupons of the bonds and may be additionally secured by a mortgage lien upon the public utility to the holders of the bonds and to the holders of any coupons of the bonds. If a mortgage lien is created by ordinance or resolution, the lien shall be is perfected by publication of the ordinance or resolution or by recording of the ordinance or resolution in the records of the municipality. In addition, the municipality may record the lien by notifying the register of deeds of the county in which the public utility is located concerning its issuance of bonds. If the register of deeds receives notice from the municipality, the register of deeds shall record any mortgage lien created. The public utility shall remain remains subject to the pledge and, if created, the mortgage lien until the payment in full of the principal and interest of the bonds. Upon repayment of bonds for which a mortgage lien has been created, the register of deeds shall, upon notice from the municipality, record a satisfaction of the mortgage lien. Any holder of a bond or of any coupons attached to a bond may either at law or in equity protect and enforce this pledge and, if created, the mortgage lien and compel performance of all duties required of the municipality by this section. Any A municipality may provide for additions, extensions and improvements to a public utility that it owns by additional issues of bonds under this section. Such The additional issues of bonds shall be are subordinate to all prior issues of bonds under this section, but a municipality may in the ordinance or resolution authorizing bonds permit the issue of additional bonds on a parity therewith. Any with prior issues. A municipality may issue new bonds under this section to provide funds for refunding any outstanding municipal obligations, including interest, issued for any of the purposes stated in sub. (1m) (3). Refunding bonds issued under this section are subject to all of the following provisions:

1. Refunding bonds may be issued to refinance more than one issue of outstanding municipal obligations notwithstanding that such the outstanding municipal obligations may have been issued at different times and may be secured by the revenues of more than one public utility. Any such public Public utilities may be operated as a single public utility, subject however to contract rights vested in holders of bonds or promissory notes being refinanced. A determination by the governing body of a municipality that any refinancing is advantageous or necessary to the municipality shall be is conclusive.

4. The refunding bonds shall are not be considered an indebtedness of such a municipality, and shall not be included in arriving at the constitutional debt limitation.

5. The governing body of a municipality may, in addition to other powers conferred by this section, include a provision in any ordinance or resolution authorizing the issuance of refunding bonds pledging all or any part of the revenues of any public utility or utilities or combination thereof originally financed or, extended or improved from the proceeds of any of the municipal obligations being refunded, and pledging all or any part of the surplus income derived from the investment of any a trust created in relation to the refunding.

6. This subsection, without reference to any other laws of this state, shall constitute constitutes full authority for the authorization and issuance of refunding bonds hereunder and for the doing of all other acts authorized by this subsection to be done or performed and such the refunding bonds may be issued hereunder under this subsection without regard to the requirements, restrictions or procedural provisions contained in any other law.

(c) The governing body of a municipality shall, in the ordinance or resolution authorizing the issuance of bonds, establish a system of funds and accounts and provide for sufficient revenues to operate and maintain the public utility and to provide fully for annual debt service requirements of bonds issued under this section. The governing body of a municipality may establish a fund or account for depreciation of assets of the public utility.

(d) If a governing body of a municipality creates a depreciation fund under par. (c) it shall use the funds set aside to restore any deficiency in the special redemption fund specified in par. (e) for the payment of the principal and interest due on the bonds and for the creation and maintenance of any reserves established by the bond ordinance or resolution to secure these payments. If the special redemption fund is sufficient for these purposes, moneys in the depreciation fund may be expended for repairs, replacements, new constructions, extensions or additions of the public utility. Any accumulations Accumulations of the depreciation fund may be invested, and if invested, the income from the investment shall be deposited in the depreciation fund.

(e) The governing body of the a municipality shall by ordinance or resolution create a special fund in the treasury of the municipality to be identified as "the .... special redemption fund" into which shall be paid the amount which shall be is set aside for the payment of the principal and interest due on the bonds and for the creation and maintenance of any reserves established by bond ordinance or resolution to secure these payments.

(f) At the close of the public utility's fiscal year, if any surplus has accumulated in any of the above funds specified in this subsection, it may be disposed of in the order set forth under s. 66.069 (1) (c) 66.0811 (2).

(g) The reasonable cost and value of any service rendered to such a municipality by such a public utility shall be charged against the municipality and shall be paid by it in instalments.

(h) The rates for all services rendered by such a public utility to the a municipality or to other consumers, shall be reasonable and just, taking into account and consideration the value of the said public utility, the cost of maintaining and operating the same public utility, the proper and necessary allowance for depreciation thereof of the public utility, and a sufficient and adequate return upon the capital invested.

(i) The governing body shall have full power to of a municipality may adopt all ordinances and resolutions necessary to carry into effect this subsection. Any An ordinance or resolution providing for the issuance of bonds may contain such provisions or covenants, without limiting the generality of the power to adopt such an ordinance or resolution, as is deemed are considered necessary or desirable for the security of bondholders or the marketability of the bonds, including. The provisions or covenants may include but are not limited to provisions as relating to the sufficiency of the rates or charges to be made for service, maintenance and operation, improvements or additions to and sale or alienation of the public utility, insurance against loss, employment of consulting engineers and accountants, records and accounts, operating and construction budgets, establishment of reserve funds, issuance of additional bonds, and deposit of the proceeds of the sale of the bonds or revenues of the public utility in trust, including the appointment of depositories or trustees. Any An ordinance or resolution authorizing the issuance of bonds or other obligations payable from revenues of a public utility shall constitute constitutes a contract with the holder of any bonds or other obligations issued pursuant to such the ordinance or resolution.

150,176 Section 176. 66.066 (2) (j) of the statutes is repealed.

Note: Repeals an archaic provision of the statutes regulating proceedings relating to a public utility that were begun prior to May 6, 1911.

150,177 Section 177. 66.066 (2) (k) to (m), (4) and (5) of the statutes are renumbered 66.0621 (4) (j) to (L), (5) and (6), and 66.0621 (4) (j) to (L) and (5), as renumbered, are amended to read:

66.0621 (4) (j) Under this paragraph, the The ordinance or resolution required under par. (c) may set apart bonds equal to the amount of any secured debt or charge subject to which a public utility may be purchased, acquired, leased, constructed, extended, added to or improved, and. The ordinance or resolution shall set aside for interest and debt service fund from the income and revenues of the public utility a sum sufficient to comply with the requirements of the instrument creating the lien, or, if the instrument does not make any provision for it, the ordinance or resolution shall fix the amount which shall be set aside into a secured debt fund from month to month for interest on the secured debt, and a fixed amount or proportion not exceeding a stated sum, which shall be not less than one percent 1% of the principal, to be set aside into the fund to pay the principal of the debt. Any surplus after satisfying the debt may be transferred to the special redemption fund. Public utility bonds set aside for the debt may from time to time be issued to an amount sufficient with the amount then in the debt service fund to pay and retire the debt or any portion of it; the. The bonds may be issued at not less than 95% of the par value in exchange for, or satisfaction of, the secured debt, or may be sold in the manner provided in this paragraph, and the proceeds applied in payment of the secured debt at maturity or before maturity by agreement with the holder. The governing body of a municipality and the owners of any a public utility acquired, purchased, leased, constructed, extended, added to or improved under this paragraph may, upon such terms and conditions as are satisfactory, contract that public utility bonds providing for the secured debt or for the whole purchase price shall be deposited with a trustee or depository and released from deposit from time to time on the terms and conditions necessary to secure the payment of the debt.

(k) Any A municipality purchasing, acquiring, leasing, constructing, extending, adding to or improving, conducting, controlling, operating or managing a public utility subject to a mortgage or deed of trust by the vendor or the vendor's predecessor in title to secure the payment of outstanding and unpaid bonds made by the vendor or the vendor's predecessor in title, may readjust, renew, consolidate or extend the obligation evidenced by the outstanding bonds and continue the lien of the mortgage, securing the same mortgage by issuing bonds to refund the outstanding mortgage or revenue bonds at or prior to before their maturity, which. The refunding bonds shall be are payable only out of a special redemption fund to be created and set aside by ordinance or resolution under par. (e). The refunding bonds shall be secured by a mortgage lien upon the public utility, and the municipality is authorized to may adopt all ordinances or resolutions and take all proceedings, following the procedure under this subsection. The lien shall have has the same priority on the public utility as the mortgage securing the outstanding bonds, unless otherwise expressly provided in the proceedings of the governing body of the municipality.

(L) 1. If the governing body of any a municipality, by ordinance or resolution, declares its intentions to authorize the issuance or sale of revenue bonds under this section, the governing body may, prior to issuance of the bonds and in anticipation of their sale, authorize the issuance of bond anticipation notes by the adoption of a resolution or ordinance. The notes shall be named "bond anticipation notes.". Bond anticipation notes may be issued for the purposes for which the municipality has authority to issue revenue bonds. The ordinance or resolution authorizing the bond anticipation notes shall state the purposes for which the bond anticipation notes are to be issued and shall set forth a covenant of the municipality to issue the revenue bonds in an amount sufficient to retire the outstanding bond anticipation notes. The ordinance or resolution may contain other covenants and provisions, including a description of the terms of the revenue bonds to be issued. The municipality may pledge revenues of the public utility to payment of the principal and interest on the bond anticipation notes. Prior to issuance of the bond anticipation notes, the governing body may adopt an ordinance or resolution authorizing the revenue bonds.

2. Bond anticipation notes may be issued for periods of up to 5 years and may, by ordinance or resolution of the governing body of a municipality, be refunded one or more times, if the refunding bond anticipation notes do not exceed 5 years in term and if they will be paid within 10 years after the date of issuance of the original bond anticipation notes. Bond anticipation notes shall be executed as provided in s. 67.08 (1) and may be registered under s. 67.09. These notes shall state the sources from which they are payable. Bond anticipation notes are not an indebtedness of the municipality issuing them, and no lien may be created or attached with respect to any property of the municipality as a consequence of the issuance of such the notes.

3. Any funds derived from the issuance and sale of revenue bonds under this section and issued subsequent to the execution and sale of bond anticipation notes shall constitute a trust fund, and such the fund shall be expended first for the payment of principal and interest of such the bond anticipation notes, and then may be expended for such other purposes as are set forth in the ordinance or resolution authorizing the revenue bonds. No bond anticipation notes may be issued unless a financial officer of the municipality certifies to the governing body of the municipality that contracts with respect to additions, improvements and extensions are to be let and that the proceeds of such the notes shall be are required for the payment of such the contracts.

4. Following the issuance of the bond anticipation notes, revenues of the public utility may be paid into a fund to pay principal and interest on the bond anticipation notes, which moneys or any part of them may, by the ordinance or resolution authorizing the issuance of bond anticipation notes, be pledged for the payment of the principal of and interest on such the notes. The ordinance or resolution shall pledge to the payment of the principal of the notes the proceeds of the sale of the revenue bonds in anticipation of the sale of which the notes were authorized to be issued and may provide for use of revenue of the public utility or other available funds for payment of principal on the notes. The notes shall constitute are negotiable instruments.

6. Any A municipality authorized to issue or sell bond anticipation notes under this paragraph may, in addition to the revenue sources or bond proceeds, appropriate funds out of its annual tax levy for the payment of such the notes. The payment of such the notes out of funds from a tax levy shall is not be construed as constituting an obligation of such the municipality to make any other such appropriation.