AB710: Bill Text

AB710,130,12 (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.

AB710,130,16 (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.

AB710, s. 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:

AB710,131,6 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.

AB710,131,16 (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.

AB710,131,22 (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.

AB710,132,5 (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.

AB710,132,7 (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:

AB710,132,18 (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.

AB710,133,3 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.

AB710,133,10 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.

AB710,134,15 (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:

AB710,134,23 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.

AB710,135,3 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.

AB710,135,10 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.

AB710,135,16 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.

AB710,135,22 (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.

AB710,136,7 (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.

AB710,136,13 (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.

AB710,136,16 (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).

AB710,136,19 (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.

AB710,136,25 (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.

AB710,137,17 (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.

AB710, s. 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.

AB710, s. 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:

AB710,138,22 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.

AB710,139,13 (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.

AB710,140,3 (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.

AB710,140,12 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.

AB710,140,22 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.

AB710,141,7 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.

AB710,141,12 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.

AB710,141,14 7. Such bond Bond anticipation notes shall constitute are a legal form of investment for municipal funds under s. 66.04 (2) 66.0605 (1).

AB710,142,4 (5) Any A municipality which may own, purchase, acquire, lease, construct, extend, add to, improve, conduct, control, operate or manage any public utility may also, by action of its governing body, in lieu of issuing bonds or levying taxes and in addition to any other lawful methods of paying obligations, provide for or secure the payment of the cost of purchasing, acquiring, leasing, constructing, extending, adding to, improving, conducting, controlling, operating or managing a public utility by pledging, assigning or otherwise hypothecating, shares of stock evidencing a controlling interest therein in a public utility, or the net earnings or profits derived, or to be derived, from the operation of the public utility. The municipality may enter into the contracts and may mortgage the public utility and issue obligations to carry out this subsection. Any A municipality may issue additional obligations under this subsection or elsewhere in this section, but those obligations shall be are subordinate to all prior obligations, except that the municipality may in the ordinance or resolution authorizing obligations under this subsection permit the issue of additional obligations on a parity with those previously issued.

AB710, s. 178 Section 178. 66.067 of the statutes is repealed.

Note: Repeals s. 66.067, relating to permissible public works projects, since the substance of the section has been incorporated into s. 66.0621 (1) (b).

AB710, s. 179 Section 179. 66.068 (title) of the statutes is renumbered 66.0805 (title) and amended to read:

AB710,142,8 66.0805 (title) Management of municipal public utility by commission.

AB710, s. 180 Section 180 . 66.068 (1) of the statutes is repealed.

Note: The repealed subsection is restated as s. 66.0805 (1), created by Section 236.

AB710, s. 181 Section 181 . 66.068 (2) to (4) of the statutes are renumbered 66.0805 (2) to (4), and 66.0805 (3) and (4), as renumbered, are amended to read:

AB710,142,20 66.0805 (3) The commissioners commission shall choose from among their number a president and a secretary. They from its membership. The commission may appoint and establish the compensation of a manager. The commission may command the services of the city, village or town engineer and may employ and fix the compensation of such subordinates as shall be necessary. They The commission may make rules for their own its proceedings and for the government of their the department. They The commission shall keep books of account, in the manner and form prescribed by the department of transportation or public service commission, which shall be open to the public.

Note: The 2nd sentence restates a portion of s. 66.068 (1), repealed by Section 180.

AB710,143,10 (4) (a) It may be provided The governing body of the city, village or town may provide that departmental expenditures be audited by such the commission, and if approved by the president and secretary of the commission, be paid by the city, village or town clerk and treasurer as provided by s. 66.042 66.0607; that the utility receipts be paid to a bonded cashier or cashiers appointed by the commission, to be turned over to the city, village or town treasurer at least once a month; and that the commission have such designated general powers in the construction, extension, improvement and operation of the utility as shall be designated. Where in any municipality. Actual construction work shall be under the immediate supervision of the board of public works or corresponding authority.

AB710,143,19 (b) If water mains have been installed or extended in a municipality and the cost thereof of installation or extension has been in some instances assessed against the abutting owners and in other instances paid by the municipality or any a utility therein, it may be provided by, the governing body of such the municipality may provide that all persons who paid any such the assessment against any lot or parcel of land may be reimbursed the amount of such the assessment regardless of when such assessment was made or paid. Such reimbursement Reimbursement may be made from such funds or earnings of said the municipal utility or from such funds of the municipality as the governing body determines.

Note: The new sentence at the end of par. (a) restates s. 66.068 (5), repealed by Section 182.

AB710, s. 182 Section 182 . 66.068 (5) of the statutes is repealed.

Note: The repealed provision is restated in renumbered s. 66.0805 (4) (a). See Section 181.

AB710, s. 183 Section 183. 66.068 (6) and (7) of the statutes are renumbered 66.0805 (5) and (6) and amended to read:

AB710,144,2 66.0805 (5) Two or more public utilities acquired as a single enterprise hereunder may be operated under this section as a single enterprise.

AB710,144,6 (6) In a 2nd, 3rd or 4th class city, a village or a town, the council or board may provide for the operation of a public utility or utilities by the board of public works or by another officer or officers, in lieu of the commission above provided for in this section.

AB710, s. 184 Section 184. 66.069 (title) of the statutes is renumbered 66.0809 (title) and amended to read:

AB710,144,10 66.0809 (title) Charges; outside services Municipal public utility charges.

AB710, s. 185 Section 185. 66.069 (1) (title) of the statutes is repealed.

AB710, s. 186 Section 186. 66.069 (1) (a) to (bn) of the statutes are renumbered 66.0809 (1) to (5), and 66.0809 (1), (2), (3), (4) (intro.) and (a) and (5) (a) (intro.) and (b) to (d), as renumbered, are amended to read:

AB710,144,22 66.0809 (1) Except as provided in par. (am) sub. (2), the governing body of any a town, village or city operating a public utility may, by ordinance, fix the initial rates and shall provide for this collection monthly, bimonthly or quarterly in advance or otherwise. The rates shall be uniform for like service in all parts of the municipality and shall include the cost of fluorinating the water. The rates may also include standby charges to property not connected but for which such public utility facilities have been made available. The charges shall be collected by the treasurer or other officer or employe designated by the city, village or town.

Note: Authorizes, as an alternative to the treasurer collecting utility charges, a city, village or town to designate another officer to collect the charges. Apparently, in a number of municipalities, utility commissions have their own bonded clerk collect charges.

AB710,145,4 (2) If, on June 21, 1996, it is the practice of a governing body of a town, village or city operating a public utility to collect utility service charges using a billing period other than one permitted under par. (a) sub. (1), the governing body may continue to collect utility service charges using that billing period.

AB710,146,17 (3) Except as provided in pars. (bg) and (bn) subs. (4) and (5), on October 15 in each year notice shall be given to the owner or occupant of all lots or parcels of real estate to which utility service has been furnished prior to October 1 by a public utility operated by any a town, city or village and payment for which is owing and in arrears at the time of giving such the notice. The department in charge of the utility shall furnish the treasurer with a list of all such the lots or parcels of real estate for which utility service charges are in arrears, and the notice shall be given by the treasurer, unless the governing body of the city, village or town shall authorize such authorizes notice to be given directly by the department. Such The notice shall be in writing and shall state the amount of such arrears, including any penalty assessed pursuant to the rules of such the utility; that unless the same amount is paid by November 1 thereafter a penalty of 10 % 10% of the amount of such arrears will be added thereto; and that unless such the arrears, with any such added penalty, shall be are paid by November 15 thereafter, the same arrears and penalty will be levied as a tax against the lot or parcel of real estate to which utility service was furnished and for which payment is delinquent as above specified. Such. The notice may be served by delivery to either such the owner or occupant personally, or by letter addressed to such the owner or occupant at the post-office address of such the lot or parcel of real estate. On November 16 the officer or department issuing the notice shall certify and file with the clerk a list of all lots or parcels of real estate, giving the legal description thereof, to the owners or occupants of, for which notice of arrears in payment were was given as above specified and for which arrears still remain unpaid, and stating the amount of such arrears together with the added and penalty thereon as herein provided. Each such delinquent amount, including such the penalty, shall thereupon become becomes a lien upon the lot or parcel of real estate to which the utility service was furnished and payment for which is delinquent, and the clerk shall insert the same delinquent amount and penalty as a tax against such the lot or parcel of real estate. All proceedings in relation to the collection of general property taxes and to the return and sale of property for delinquent taxes shall apply to said the tax if the same it is not paid within the time required by law for payment of taxes upon real estate. Under this paragraph subsection, if an arrearage is for utility service furnished and metered by the utility directly to a mobile home unit in a licensed mobile home park, the notice shall be given to the owner of the mobile home unit and the delinquent amount shall become becomes a lien on the mobile home unit rather than a lien on the parcel of real estate on which the mobile home unit is located. A lien on a mobile home unit may be enforced using the procedures under s. 779.48 (2). This paragraph subsection does not apply to arrearages collected using the procedure under s. 66.60 (16) 66.0627.

AB710,146,19 (4) (intro.) A municipal utility may use the procedures under par. (b) sub. (3) to collect arrearages for electric service only if one of the following applies:

AB710,146,22 (a) The municipality has enacted an ordinance that authorizes the use of the procedures under par. (b) sub. (3) for the collection of arrearages for electric service provided by the municipal utility.

AB710,146,24 (5) (a) (intro.) This paragraph subsection applies only if all of the following conditions are met:

AB710,147,4 (b) If this paragraph subsection applies, a municipal public utility may use par. (b) sub. (3) to collect arrearages incurred after the owner of a rental dwelling unit has provided the utility with written notice under subd. 1. par. (a) only if the municipality complies with at least one of the following:

AB710,147,17 1. In order to comply with this subd. 2. a. subdivision, a municipal public utility shall send bills for water or electric service to a customer who is a tenant in the tenant's own name. Each time that a municipal public utility notifies a customer who is a tenant that charges for water or electric service provided by the utility to the customer are past due for more than one billing cycle, the utility shall also serve a copy of the notice on the owner of the rental dwelling unit in the manner provided in s. 801.14 (2). If a customer who is a tenant vacates his or her rental dwelling unit, and the owner of the rental dwelling unit provides the municipal public utility, no later than 21 days after the date on which the tenant vacates the rental dwelling unit, with a written notice that contains a forwarding address for the tenant and the date that the tenant vacated the rental dwelling unit, the utility shall continue to send past-due notices to the customer at his or her forwarding address until the past-due charges are paid or until notice has been provided under par. (b) sub. (3).

AB710,147,23 2. In order to comply with this subd. 2. b. subdivision, if a customer who is a tenant has charges for water or electric service provided by the utility that are past due, the municipal public utility shall serve notice of the past-due charges on the owner of the rental dwelling unit within 14 days of the date on which the tenant's charges became past due. The municipal public utility shall serve notice in the manner provided in s. 801.14 (2).

AB710,148,3 (c) A municipal public utility may demonstrate compliance with the notice requirements of subd. 2. a. or b. par. (b) 1. or 2. by providing evidence of having sent the notice by U.S. mail.

AB710,148,6 (d) If this paragraph subsection applies and a municipal public utility is permitted to collect arrearages under par. (b) sub. (3), the municipal public utility shall provide all notices under par. (b) sub. (3) to the owner of the property.

AB710, s. 187 Section 187. 66.069 (1) (c) and (d) of the statutes are renumbered 66.0811 (2) and (3) and amended to read:

AB710,148,20 66.0811 (2) The income of a municipal public utility owned by a municipality, shall first be used to make payments to meet operation, maintenance, depreciation, interest, and debt service fund requirements, local and school tax equivalents, additions and improvements, and other necessary disbursements or indebtedness. Beginning with taxes levied in 1995, payable in 1996, payments for local and school tax equivalents shall at least be equal to the payment made on the property for taxes levied in 1994, payable in 1995, unless a lower payment is authorized by the governing body of the municipality. Income in excess of these requirements may be used to purchase and hold interest bearing bonds, issued for the acquisition of the utility, or; bonds issued by the United States or any municipal corporation of this state, or; insurance upon the life of an officer or manager of such the utility,; or may be paid into the general fund.

AB710,149,2 (3) Any A city, town or village may use funds derived from its water plant above such as are necessary to meet operation, maintenance, depreciation, interest and debt service funds,; new construction or equipment or other indebtedness, for sewerage construction work other than such as that which is chargeable against abutting property; or they may turn such the funds may be placed into the general fund to be used for general city purposes, or may place such funds in a special fund to be used for special municipal purposes.

AB710, s. 188 Section 188. 66.069 (1) (e) of the statutes is renumbered 66.0811 (1) and amended to read:

AB710,149,6 66.0811 (1) Any A city, village or town owning a public utility shall be is entitled to the same rate of return as permitted for privately owned utilities.

AB710, s. 189 Section 189. 66.069 (2) of the statutes is renumbered 66.0813, and 66.0813 (1), (2), (3) (a), (5) and (6), as renumbered, are amended to read:

AB710,149,13 66.0813 (1) Any A town, town sanitary district, village or city owning water, light or power plant or equipment may serve persons or places outside its corporate limits, including adjoining municipalities not owning or operating a similar utility, and may interconnect with another municipality, whether contiguous or not, and for such these purposes may use equipment owned by such the other municipality.

AB710,149,17 (2) So much of such plant Plant or equipment, except water plant or equipment or interconnection property in any municipality so interconnected, as shall be situated in another municipality shall be is taxable in such the other municipality pursuant to under s. 76.28.

AB710,149,24 (3) (a) Notwithstanding s. 196.58 (5), each a city, village or town may by ordinance fix the limits of such utility service in unincorporated areas. Such The ordinance shall delineate the area within which service will be provided and the municipal utility shall have has no obligation to serve beyond the area so delineated . Such area. The delineated area may be enlarged by a subsequent ordinance. No such ordinance shall be under this paragraph is effective to limit any obligation to serve which may have that existed at the time that the ordinance was adopted.

AB710,150,9 (5) An agreement under par. (d) sub. (4) under which a city or village agrees to furnish sewerage service to a prison, which is located in an area which that has been incorporated since that agreement was made, may be amended to provide that the city or village will also furnish water service to the prison. An agreement amended under this paragraph subsection fixes the nature and geographical limits of the water and sewer service unless altered by a change in the agreement, notwithstanding s. 196.58 (5). A change in use or ownership of property included under an agreement amended under this paragraph subsection does not alter the terms and limitations of that agreement.

AB710,150,18 (6) Any A town, village or city owning a public utility, or the board of any municipal public utility appointed under s. 66.068 66.0805, may enter into agreements with any other such towns, villages or cities owning public utilities, or any other such boards of municipal public utilities, for mutual aid in the event of an emergency or disaster in any of their respective service areas. Such The agreements may include, but are not limited to, provisions for the movement of employes and equipment in and between the service areas of the various participating municipalities for the purpose of rendering such aid and, for the reimbursement of a municipality rendering such aid by the municipality receiving the aid.

AB710, s. 190 Section 190. 66.07 of the statutes is renumbered 66.0817, and 66.0817 (intro.) and (1) to (6), as renumbered, are amended to read:

AB710,150,23 66.0817 Sale or lease of municipal public utility plant. (intro.) Any A town, village or city may sell or lease any complete public utility plant owned by it, in manner the following manner:

AB710,151,6 (1) A preliminary agreement with the prospective purchaser or lessee shall be authorized by a resolution or ordinance containing a summary of the terms proposed, of the disposition to be made of the proceeds, and of the provisions to be made for the protection of holders of obligations against such the plant or against the municipality on account thereof. Such of the plant. The resolution or ordinance shall be published at least one week before adoption, as a class 1 notice, under ch. 985. It The resolution or ordinance may be adopted only at a regular meeting and by a majority of all the members of the governing body.

AB710,151,10 (2) The preliminary agreement shall fix the price of sale or lease, and provide that if the amount fixed by the department of transportation or public service commission shall be larger is greater, the price shall be that fixed by the department or commission.

AB710,151,15 (3) The municipality shall submit the preliminary agreement when executed to the department of transportation or public service commission, which shall determine whether the interests of the municipality and of the its residents thereof will be best served by the sale or lease, and if it so determines, shall fix the price and other terms.

AB710,151,25 (4) The After the price and other terms are fixed under sub. (3), the proposal shall then be submitted to the electors of the municipality. The notice of the referendum shall include a description of the plant, and a summary of the preliminary agreement, and of the price and terms as fixed by the department of transportation or public service commission. If a majority voting on the question shall vote votes for the sale or lease, the board or council shall be authorized to may consummate the same sale or lease, upon the terms and at a price not less than fixed by the department of transportation or public service commission, with the proposed purchaser or lessee or any other with whom better terms approved by the department of transportation or public service commission can be made.

AB710,152,3 (5) Unless the sale or lease is consummated within one year of the referendum, or the time is extended by the department of transportation or public service commission, the proceedings shall be are void.

AB710,152,14 (6) If the municipality has revenue or mortgage bonds outstanding relating to such the utility plant and which by their terms may not be redeemed concurrently with the sale or lease transaction, an escrow fund with a domestic bank as trustee may be established for the purpose of holding, administering and distributing such that portion of the sales or lease proceeds as may be necessary to cover the payment of the principal, any redemption premium and interest which will accrue on the principal through the earliest retirement date of the bonds. During the period of the escrow arrangement such the funds may be invested in securities or other investments as described in s. 201.25 (1) (a), (b), (dm) and (j), 1969 stats., and in deposits or certificates of deposit with any state or national bank doing business in this state 66.0603 (1).

Note: 1. The references in sub. (1) to "resolution or ordinance" are affected by the treatment of s. 66.06 by Sections 163 and 235, which delete the current provision that the phrase "resolution or ordinance", when used in specified sections, means "ordinance" only. Thus, the references to "resolution or ordinance" in sub. (1) will now include either kind of action, not just "ordinance".

2. Revises, in sub. (6), the cross-reference to permitted investments in sub. (6) by replacing the reference to the 1969 statutes with the current provision setting forth authorized investments by municipalities.