WEST VIRGINIA CODE
WVC 8-
CHAPTER 8. MUNICIPAL CORPORATIONS.
WVC -16-
ARTICLE 16. MUNICIPAL PUBLIC WORKS; REVENUE BOND FINANCING.
WVC 8 - 16 - 1
PART I. DEFINITIONS; AUTHORIZATION
OF MUNICIPAL PUBLIC WORKS.
§8-16-1. Definitions.
As used in this article, the following terms shall have the
following meanings unless the text clearly indicates otherwise.
(a) "Municipal public works" or "works" or "projects" means
the construction, reconstruction, establishment, acquisition,
improvement, renovation, extension, enlargement, increase,
equipment, maintenance, repair (including replacements) and
operation of jails, jail facilities, municipal buildings, police
stations, fire stations, libraries, museums, other public
buildings, incinerator plants, land fill or other garbage disposal
systems, hospitals, piers, docks, terminals, airports, drainage
systems, flood control systems, stormwater systems and associated
stormwater management program, flood walls, culverts, bridges
(including approaches, causeways, viaducts, underpasses and
connecting roadways), public markets, cemeteries, motor vehicle
parking facilities (including parking lots, buildings, ramps,
curb-line parking, meters and other facilities considered
necessary, appropriate, useful, convenient or incidental to the
regulation, control and parking of motor vehicles), farms,
dormitories, apartments and other housing facilities for the
students and faculties of institutions of higher education;
facilities providing housing for the elderly, including, but not
limited to, life care facilities, congregate living facilities and adult residential facilities, stadiums, gymnasiums, sports arenas,
auditoriums, public recreation centers, public recreation parks,
swimming pools, roller skating rinks, ice skating rinks, tennis
courts, golf courses, polo grounds, or the grading, regrading,
paving, repaving, surfacing, resurfacing, curbing, recurbing,
widening or otherwise improving of any street, avenue, road, alley
or way, or the building or renewing of sidewalks, where works or
projects will be made self-supporting, and the cost thereof,
together with the interest thereon, will be returned within a
reasonable period, not exceeding forty years, by means of tolls,
fees, rents, special assessments or charges other than taxation;
and the terms shall also mean any works or project as a whole, and
all integral parts thereof, including all necessary, appropriate,
useful, convenient or incidental appurtenances and equipment in
connection with any one or more of the above.
(b) "Stormwater systems" means a stormwater system in its
entirety or any integral part thereof used to collect and dispose
of stormwater and an associated stormwater management program. It
includes all facilities, structures and natural water courses used
for collecting and conducting stormwater to, through and from
drainage areas to the points of final outlet including, but not
limited to, any and all of the following: Inlets, conduits,
outlets, channels, ponds, drainage easements, water quality
facilities, catch basins, ditches, streams, gulches, flumes,
culverts, siphons, retention or detention basins, dams, floodwalls, pipes, flood control systems, levies and pumping stations. The
term "stormwater systems" shall not include highways, road and
drainage easements, and/or stormwater facilities constructed, owned
and/or operated by the West Virginia division of highways.
(c) "Stormwater management program" means those activities
associated with the management, operation, maintenance and control
of stormwater and stormwater systems, and shall include, but not be
limited to, public education, stormwater and surface runoff water
quality improvement, mapping, planning, flood control, inspection,
enforcement and any other activities required by state and federal
law. The term "stormwater management program" shall not include
those activities associated with the management, operation,
maintenance and control of highways, road and drainage easements,
and/or stormwater facilities constructed, owned and/or operated by
the West Virginia division of highways without the express
agreement of the commissioner of highways.
WVC 8-16-2
§8-16-2. Municipalities authorized to construct, etc., public
works and to acquire property; payment of costs.
Every municipality is and any two or more municipalities
acting jointly, whether situate in the same county or different
counties, are, hereby empowered and authorized to construct,
reconstruct, establish, acquire, improve, renovate, extend,
enlarge, increase, own, equip, repair (including replacements),
maintain and operate any municipal public works, together with all
appurtenances necessary, appropriate, useful, convenient or
incidental for or to the maintenance and operation of such works,
and shall have plenary power and authority to acquire by gift,
grant, purchase, condemnation or otherwise, and thereafter hold,
all necessary lands, rights, easements, right-of-ways, franchises
and other property therefor within or without, or partly within and
partly without, the corporate limits of any such municipality or
municipalities, and to issue revenue bonds to pay the costs of such
public works and properties:
Provided, That this section shall not
be construed to authorize any municipality to construct,
reconstruct, establish, acquire, improve, renovate, extend,
enlarge, increase, own, equip, repair (including replacements),
maintain or operate any works which would render a service already
being adequately rendered within such municipality. No obligation
shall be incurred by any municipality in such construction,
reconstruction, establishment, acquisition, improvement,
renovation, extension, enlargement or increase, except such as is payable solely from the funds provided under the authority of this
article.
WVC 8-16-3
§8-16-3. Special provisions as to certain municipal public works.
When the municipal public works is a motor vehicle parking
facility, any municipality involved therein shall have the plenary
power and authority, in order to help finance the same, to use any
revenue derived from other parking meters or other parking
facilities, unless such revenue is otherwise pledged to pay for
such other parking meters or other parking facilities.
When the municipal public works is a jail facility used for
municipal prisoners, any municipality involved therein shall have
the power and authority, in order to help finance the same, to
pledge, for a period not to exceed twenty years, the proceeds
derived from the imposition of fines and fees.
When the cost of the municipal public works is to be paid by
special assessment against the abutting property, represented by
assessment certificates which constitute a lien upon such property
and said assessment certificates are pledged by any municipality to
retire revenue bonds issued and sold to pay the cost thereof, the
payor of such assessment certificate shall have the right to pay
the same at any time before maturity, together with interest
thereon to date of payment, and upon the payment of such assessment
certificate the treasurer of such municipality shall deliver to the
payor a release for such lien, and the funds received therefrom
shall by said treasurer be deposited in a special fund to be
expended only in the payment of such revenue bonds.
WVC 8-16-4
PART II. CONTROL OF GOVERNING BODY OR BOARD.
§8-16-4. Construction, etc., to be under control of governing body
or appointed board, etc.
The construction, reconstruction, establishment, acquisition,
improvement, renovation, extension, enlargement, increase,
equipment, repair (including replacements), custody, maintenance
and operation of any such works, and the collection of revenues
therefrom, shall be under the supervision and control of the
governing body, or of a committee, by whatever name called,
composed of all or a portion of the governing body when only one
municipality is involved, or of a board or commission appointed by
such governing body when only one municipality is involved or
appointed by the governing bodies when two or more municipalities
take joint action under the provisions of this article, as may be
provided by the governing body or bodies.
When such supervision and control are vested in a committee,
board or commission, the governing body or bodies, as the case may
be, may provide, by ordinance or ordinances, for said committee,
board or commission to exercise such of the functions of the
governing body or bodies in connection with the matter as it or
they deem proper, and may provide for said committee, board or
commission to receive such compensation as such body or bodies may
deem proper, all of which authority and compensation shall be
specifically provided for by ordinance or ordinances. Any such
committee, board or commission shall consist of the number of
members fixed in the ordinance or ordinances creating the same, and
the manner and mode of the selection and appointment of the members of any such board or commission shall be stated in such ordinance
or ordinances. The members of any such board or commission
appointed by the governing body or bodies shall be chosen without
regard to their political affiliations, but with regard to their
business and professional experience or standing as citizens in the
community. All compensation and expenses, including attorney's
fees, of such committee, board or commission shall be paid solely
from funds provided under the authority of this article. Any such
committee, board or commission shall have the power to establish
bylaws, rules and regulations for its own government.
When hereinafter used in this article, the term "board" shall
be construed to mean the governing body or committee composed of
all or a portion of the governing body when only one municipality
is involved, or a board or commission appointed by the governing
body when only one municipality is involved or appointed by the
governing bodies when two or more municipalities take joint action
under the provisions of this article, as the case may be. When two
or more municipalities take joint action under the provisions of
this article each governing body shall appoint to the board the
number of members which the governing bodies have agreed shall be
appointed by each such governing body.
The governing body or bodies also, in its or their discretion,
may provide by ordinance or ordinances for the leasing of a
municipal public works and provide for the custody, maintenance and
operation thereof by a lessee in accordance with the provisions of
such ordinance or ordinances and lease contract executed pursuant
thereto: Provided, That the lessee shall pay to the municipality or municipalities for the use and occupancy of such municipal
public works so leased an amount sufficient to provide a sinking
fund for the payment of the bonds and the interest thereon and all
other charges mentioned in section seventeen of this article.
WVC 8-16-4a
§8-16-4a. Additional special provisions as to motor vehicle
parking facilities.
(a) The Legislature hereby finds that the greatly increased
use by the public of motor vehicles of all kinds has caused serious
traffic congestion on the streets of many municipalities in this
state; that the lack of adequate planning and supervision of the
location of parking facilities, the parking of motor vehicles of
all kinds and the lack of adequate parking facilities for motor
vehicles of all kinds substantially impede the free circulation of
traffic in, through and from many municipalities in this state,
impede the rapid and effective fighting of fires and disposition of
police officers therein, contribute to the location and relocation
of commercial and business enterprises outside of urban areas and
retard the development of commerce and business within many
municipalities in this state, thereby giving rise to urban blight
and adversely affecting or threatening to adversely affect the tax
base of such municipalities; that such parking crisis can be
reduced by such municipalities providing adequate motor vehicle
parking facilities strategically located there; that providing
properly located terminal space for motor vehicles is a public
responsibility; that fostering the development of commerce and
business within municipalities, with the increased tax revenues
resulting therefrom, is a public purpose; that fostering the
availability of property for charitable use is a public purpose;
that the closer the proximity between municipally owned motor vehicle parking facilities and commercial and business
establishments the greater the development of commerce and business
and the greater the level of revenue produced by such motor vehicle
parking facilities; that the erection or construction of pedestrian
viaducts, ramps, bridges, tunnels or other pedestrian facilities
leading to and from motor vehicle parking facilities so as to
facilitate the movement of pedestrians to and from such motor
vehicle parking facilities fosters the development of commerce and
business and increases the level of revenue produced by such motor
vehicle parking facilities; that the leasing, particularly on a
long-term basis, and the selling of space for commercial or
business use in connection with a municipally owned motor vehicle
parking facility will aid the development of commerce and business,
increase the level of revenue produced by such motor vehicle
parking facility and maintain and increase the tax base of such
municipalities; that in many instances the authority for the
leasing of space as provided for in this section would assist in
financing the construction, reconstruction, establishment,
acquisition, improvement, renovation, extension, enlargement,
increase, equipment or repair (including replacements) of any such
motor vehicle parking facility; that the enactment of this section
is for the general welfare of the public and is a public necessity;
and that the means and measures authorized in this section are, as
a matter of public policy, for the public purposes of such
municipalities. This section is enacted in view of these findings and shall be liberally construed in the light thereof.
(b) The governing body or bodies, in its or their discretion,
may provide by ordinance or ordinances:
(1) For the leasing by the board as lessor of space in or on
a municipal public works which is a motor vehicle parking facility
for any business, commercial or charitable use to such person, for
such fair and adequate consideration, for such period or periods of
time and upon such other terms and conditions as such body or
bodies or the board may agree to. In connection with the leasing
of any such space, the board may agree to provide in or on such
motor vehicle parking facility such structures, accommodations or
improvements as may be necessary for such business, commercial or
charitable use or such space may be leased upon condition that the
lessee shall provide the same in or on the space so leased.
(2) For the leasing by the board as lessor or the selling of
air space over a municipal public works which is a motor vehicle
parking facility for any business, commercial or charitable use to
such person, for such fair and adequate consideration, for such
period or periods of time in the case of a lease and upon such
other terms and conditions as such body or bodies or the board may
agree to. Any lease or deed of sale of such air space may contain
provisions (i) authorizing the use of such areas of the underlying
motor vehicle parking facility as are essential for ingress and
egress to and from such air space, (ii) relating to the support of
any building or other structure to be erected in such air space, and (iii) relating to the connection of essential public or private
utilities to any building or other structure in such air space.
(3) For the erection or construction by the board of any
pedestrian viaduct, ramp, bridge, tunnel or other pedestrian
facility leading to and from a municipal public works which is a
motor vehicle parking facility; and any such pedestrian viaduct,
ramp, bridge, tunnel or other pedestrian facility shall, for all
purposes of this article, be considered to be a part of a municipal
public works which is a motor vehicle parking facility with like
effect as if the term "municipal public works" were expressly
defined in section one of this article to include pedestrian
viaducts, ramps, bridges, tunnels or other pedestrian facilities:
Provided, That any cost incurred by any municipality or
municipalities in erecting or constructing any such pedestrian
viaduct, ramp, bridge, tunnel or other pedestrian facility which
connects a municipal public works which is a motor vehicle parking
facility with a privately owned building or buildings or other
privately owned structure or structures shall be paid for by the
owner or owners of such building or buildings or such other
structure or structures.
Any such lease may be privately negotiated without any public
notice or advertising, and any such sale may be a public sale
pursuant to the provisions of section eighteen, article twelve of
this chapter or such sale may be privately negotiated,
notwithstanding the provisions of said section eighteen.
(c) The proceeds received from any lease, sale or payment as
provided in this section shall be deemed revenue of the works and
used as provided in section seventeen of this article.
(d) Notwithstanding the fact that any motor vehicle parking
facility subject to the provisions of this article is municipally
owned and the fact that a lease or sale under the provisions of
subdivision (1) or subdivision (2), subsection (b) of this section
is for a public purpose as declared in subsection (a) of this
section, any leasehold interest under said subdivision (1), and any
building, structure, accommodation or improvement erected, made or
operated in any air space leased or sold under said subdivision (2)
shall be subject to all property taxes, which shall be assessed and
imposed against the lessee or grantee, as the case may be, unless
the use of such leasehold interest, building, structure,
accommodation or improvement is otherwise exempt from property
taxation under the provisions of section nine, article three,
chapter eleven of this code.
WVC 8-16-4b
§8-16-4b. Additional special provision as to the use of space in
motor vehicle parking facilities.
For all purposes of this article, the power and authority of
any municipality to lease, as lessor, space in a motor vehicle
parking facility to any person for business, commercial or
charitable use shall be deemed to include the power and authority
to lease such space to the United States of America, the state of
West Virginia, the county court of any county of the state of West
Virginia, and any agency, board or commission of any thereof, and
the revenues derived from such leases may be pledged as security
for and expended in payment of revenue bonds of such municipality
in like manner and to the same extent as other revenues from such
motor vehicle parking facility.
WVC 8 - 16 - 5
PART III. GENERAL POWERS AND AUTHORITY.
§8-16-5. Powers of board.
The board shall have plenary power and authority to take all
steps and proceedings, and to make and enter into all contracts or
agreements necessary, appropriate, useful, convenient or incidental
to the performance of its duties and the execution of its powers
and authority under this article:
Provided, That any contract or
agreement relating to the financing, or the construction,
reconstruction, establishment, acquisition, improvement,
renovation, extension, enlargement, increase, equipment, operation
or maintenance of any such works, and any trust indenture with
respect thereto as hereafter provided for, shall be approved by the
governing body or bodies.
The board may employ engineers, architects, inspectors,
superintendents, managers, collectors, attorneys and such other
employees as in its judgment may be necessary in the execution of
its powers and duties, and may fix their compensation, all of whom
shall do such work as the board may direct. All compensation and
expenses incurred in carrying out the provisions of this article
shall be paid solely from funds provided under the authority of
this article, and the board shall not exercise or carry out any
power or authority herein given it so as to bind said board or any
municipality beyond the extent to which money shall have been, or
may be provided under the authority of this article.
No contract or agreement with any contractor or contractors for labor or materials, or both, exceeding in amount the sum of ten
thousand dollars shall be made without advertising for bids, which
bids shall be publicly opened and an award made to the lowest
responsible bidder, with power and authority in the board to reject
any and all bids.
After the construction, reconstruction, establishment,
acquisition, renovation or equipment of any such works, the board
shall maintain, operate, manage and control the same, and may order
and complete any improvements, extensions, enlargements, increase
or repair (including replacements) of and to the works that the
board may consider expedient, if funds therefor be available, or
are made available, as provided in this article, and shall
establish rules for the use, maintenance and operation of the
works, and do all things necessary or expedient for the successful
operation thereof, and for stormwater systems and associated
stormwater management programs, those activities which include, but
are not limited to, stormwater and surface runoff water quality
improvement activities necessary to comply with all federal and
state requirements. All public ways or public works damaged or
destroyed by the board in carrying out its authority under this
article shall be restored or repaired by the board and placed in
their original condition, as nearly as practicable, if requested so
to do by proper authority, out of the funds provided under the
authority of this article.
WVC 8-16-6
§8-16-6. Preliminary expenses.
All necessary preliminary expenses actually incurred by the
board of any municipality or municipalities in the making of
surveys or estimates of cost and of revenues, employment of
engineers or other employees, the giving of notices, the taking of
options, and all other expenses of whatsoever nature necessary to
be paid prior to the issue, sale and delivery of the revenue bonds
herein provided for, may be paid by the municipality or
municipalities, to be reimbursed and repaid out of the proceeds of
the sale of such revenue bonds to be used for the construction,
reconstruction, establishment, acquisition, improvement,
renovation, extension, enlargement, increase, equipment or repair
(including replacements) of such works as hereinafter provided.
WVC 8-16-7
§8-16-7. Ordinance for construction, etc., of works.
Before any municipality or municipalities shall, under the
provisions of this article, construct, reconstruct, establish,
acquire, improve, renovate, extend, enlarge, increase, equip or
repair (including replacements) any municipal public works, the
governing body, or the governing body of each participating
municipality, shall enact an ordinance or ordinances, which shall
(a) set forth a brief and general description of the works,
including a reference to the preliminary report or plans and
specifications which shall theretofore have been prepared; (b) set
forth the estimated cost thereof; (c) order the construction,
reconstruction, establishment, acquisition, improvement,
renovation, extension, enlargement, increase, equipment or repair
(including replacements) of such works; (d) direct that municipal
revenue bonds be issued pursuant to this article, in such amount as
may be found necessary to pay the cost of the works; (e) contain
such provisions as the governing body determines are necessary or
desirable with regard to the establishment and setting aside of
reserves from the proceeds of such revenue bonds or from the
revenues of said works, or from both, and the administration and
disposition thereof; and (f) contain such other provisions as may
be necessary or proper in the premises. When two or more
municipalities take joint action under the provisions of this
article, a certified copy of each such ordinance shall be filed in
the office of the clerk of the county commission of the county or counties in which the municipalities are located and in the office
of the state tax commissioner, and when any such municipality is
located in more than one county, the filing for that municipality
shall be in the office of the clerk of the county commission in
which the major portion of the territory of such municipality is
located. Before any such ordinance shall become effective, an
abstract of the ordinance, determined by the governing body or each
governing body, as the case may be, to contain sufficient
information as to give notice of the contents of such ordinance,
together with the following described notice, shall be published as
a Class II legal advertisement in compliance with the provisions of
article three, chapter fifty-nine of this code, and the publication
area for such publication shall be such municipality or each such
municipality, as the case may be. The notice to be published with
said abstract of the ordinance shall specify a date, time and place
for a public hearing, the date being not less than ten days after
the first publication of said abstract and notice and not prior to
the last publication of said abstract and notice, at which time and
place all parties and interests may appear before the governing
body of the municipality or each such municipality and may be heard
as to whether or not said ordinance shall be put into effect, and
said notice shall also identify the office in which a certified
copy of such ordinance shall be on file for review by interested
persons during the office hours of such office. At such hearing
all objections and suggestions shall be heard and the governing body or each such governing body shall take such action as it or
they shall deem proper in the premises:
Provided, That if at any
such hearing written protest is filed by thirty percent or more of
the freeholders of the municipality for which the hearing is held,
then the governing body of said municipality shall not take further
action unless four fifths of the members of said governing body
assent thereto:
Provided, however, That in case written protest is
filed by thirty percent or more of the freeholders as herein
provided, any such governing body shall have authority to appoint
a committee to consist of one proponent, one opponent, and the
third to be selected by these two, to determine whether or not
thirty percent of the freeholders have in fact protested and said
committee shall report its findings to any such governing body.
WVC 8-16-8
PART IV. RIGHT OF EMINENT DOMAIN.
§8-16-8. Right of eminent domain.
Every such municipality shall have plenary power and authority
to condemn any such municipal public works to be acquired, and any
land, rights, easements, rights-of-way, franchises and other
property, real or personal, deemed necessary, appropriate, useful
or convenient for, and incidental to, the construction,
reconstruction or establishment of any such works and space for
business, commercial or charitable use in connection therewith, or
for the improvement, renovation, extension, enlargement, increase
or equipment thereof or thereto, and in connection therewith shall
have and may exercise all the rights, power, authority and
privileges of eminent domain granted to municipalities under the
laws relating thereto. Title to property shall be taken in the
name of the municipality or jointly in the names of the
participating municipalities. Proceedings for such appropriation
of property shall be under and pursuant to chapter fifty-four of
this code:
Provided, That any such municipality shall be under no
obligation to accept and pay for any property condemned, and shall
in no event pay for any property condemned or purchased, except
from funds provided under the authority of this article; and in any
proceedings to condemn, such orders may be made as may be just to
any such municipality and to the owners of the property to be
condemned; and an understanding or other security may be required
securing such owners against any loss or damage which may be sustained by reason of the failure of any such municipality to
accept and pay for the property, but such undertaking or security
shall impose no liability upon any such municipality, except such
as may be paid from the funds provided under the authority of this
article.
In the event of acquisition by purchase, the board may obtain
and exercise an option from the owners of said property for the
purchase thereof, and may enter into a contract for the purchase
thereof, and such purchase may be made upon such terms and
conditions, and in such manner as the board may deem proper:
Provided, however, That the exercise of such option, or the
contract for such purchase, or such purchase shall in no event
create any obligation of any such municipality, or create any debt,
liability or claim, except such as may be discharged or paid from
the funds provided under the authority of this article.
In the event of the acquisition of any works already
constructed by purchase or condemnation, the board at or before the
time of the adoption of any ordinance described in section seven
hereof, shall cause to be determined what reconstruction,
improvement, renovation, extension, enlargement, increase,
equipment or repair (including replacements) will be necessary, in
order that such works and space for business, commercial or
charitable use in connection therewith, if any, may be effective
for their purpose, and an estimate of the cost thereof shall be
included in the estimate of the cost required by section seven hereof, and the same shall be made upon the acquisition of the
works and as a part of the cost thereof: Provided further, That no
municipality or municipalities shall, under the authority conferred
by this article, condemn any existing privately owned works (other
than motor vehicle parking facilities) in operation at the date of
the condemnation.
WVC 8-16-9
PART V. REVENUE BOND FINANCING.
§8-16-9. Bonds for improvements, etc., of works.
Whenever any municipality or municipalities now, or hereafter,
shall own and maintain and operate any of the works herein referred
to, whether constructed, reconstructed, established or acquired
under the provisions of this article or not, and shall desire to
improve, renovate, extend, enlarge, increase, equip or repair
(including replacements) the same, it may issue revenue bonds,
under the provisions of this article, to pay for the same, and the
procedure therefor, including fixing all rates and the computation
of the amount thereof, shall be the same as in this article
provided for the issuance of bonds for the construction,
reconstruction, establishment or acquisition of any such works in
or by any such municipality which has not theretofore owned and
maintained and operated any such works:
Provided, That no existing
obligations or rights shall be affected or impaired thereby.
WVC 8-16-10
§8-16-10. Items of expense included in cost of works.
The cost of the works shall be deemed to include the cost of
construction, reconstruction, establishment or acquisition thereof,
the cost of all land, rights, easements, rights-of-way, franchises
and other property, real or personal, deemed necessary,
appropriate, useful, convenient or incidental therefor or thereto
and for the improvement, renovation, extension, enlargement,
increase, equipment or repair (including replacements) determined
upon; the interest upon bonds prior to and during the project and
for six months after completion thereof; the amount of any reserve
funded from the proceeds of bonds; engineering and legal expenses;
expenses for estimates of cost and of revenues; expenses for plans,
specifications and surveys; other expenses necessary or incident to
determining the feasibility or practicability of the enterprise;
administrative expenses; and such other expenses as may be
necessary or incident to the financing herein authorized, the
project, the placing of the works in operation and the performance
of the things herein required or permitted in connection with any
thereof.
WVC 8-16-11
§8-16-11. No municipality is to incur any obligation not payable
from proceeds of bonds; exemption from taxation.
Nothing in this article contained shall be so construed as to
authorize or permit any municipality or municipalities to make any
contract or incur any obligation of any kind or nature, except such
as shall be discharged or payable solely from the funds provided
under the authority of this article. Funds for the payment of the
entire cost of the works shall be provided by the issuance of
revenue bonds of the municipality or municipalities, the principal
and interest of which bonds shall be payable solely from the
special fund for such payment herein provided for, and said bonds
shall not in any respect be a corporate indebtedness of such
municipality or municipalities. All such bonds and the interest
thereon, and all properties and revenues and income derived from
such municipal public works, shall be exempt from all taxation by
this state, or any county, municipality, political subdivision or
agency thereof. All of the details of such bonds and the issuance
thereof shall be determined by ordinance of the governing body or
bodies.
WVC 8-16-12
§8-16-12. Interest rate and life of bonds; redemption; how
payable; form, denominations, etc.; additional bonds
authorized; interim certificates.
Such revenue bonds shall bear interest at not more than twelve
percent per annum, payable semiannually, or at shorter intervals,
and shall mature at such time or times, not exceeding forty years,
as may be determined by the ordinance or ordinances authorizing the
issuance of such bonds. Such bonds may be made redeemable before
maturity, at the option of the municipality or municipalities
issuing the same, to be exercised by said board, at not more than
the par value thereof, and at a premium of not more than five
percent, under such terms and conditions as may be fixed by the
ordinance or ordinances authorizing the issuance of the bonds. The
principal and interest of the bonds may be made payable in any
lawful medium. Such ordinance or ordinances shall determine the
form of the bonds, either coupon or registered, shall set forth any
registration or conversion privileges, and shall fix the
denomination or denominations of such bonds, and the place or
places of the payment of the principal and interest thereof, which
may be at any banking institution or trust company within or
without the state. When two or more municipalities take joint
action under the provisions of this article, the bonds shall be
issued by the participating municipalities either as separate or
joint bonds, as the governing bodies thereof may agree, and when
separate bonds are issued, the amount of the bonds to be issued by each participating municipality shall be fixed by agreement of the
governing bodies of the participating municipalities set forth in
the ordinance of each participating municipality authorizing the
issuance of such bonds. The bonds shall contain a statement on
their face that the municipality or municipalities issuing the same
shall not be obligated to pay the same, or the interest thereon,
except from the special fund derived from the net revenue of the
works, or the pro rata part thereof, as provided for in section
eleven hereof. All such bonds shall be, and shall have and are
hereby declared to have all the qualities and incidents of
negotiable instruments, under the Uniform Commercial Code of this
state. The bonds shall be executed in such manner as the governing
body or bodies may direct. The bonds shall be sold by the
governing body or bodies in such manner as may be determined to be
for the best interest of the municipality or municipalities:
Provided, That said bonds shall not be negotiated at a price lower
than a price which when computed to maturity upon standard tables
of bond values will show a net return of more than thirteen percent
per annum to the purchaser upon the amount paid therefor. Any
surplus of the bond proceeds over and above the cost of the project
shall be paid into the sinking fund hereinafter provided for. If
the proceeds of the bonds, by error of calculation or otherwise,
shall be less than the cost of the project, additional bonds may in
like manner be issued to provide the amount of such deficit, and,
unless otherwise provided in the ordinance or ordinances authorizing the issuance of the bonds first issued, or in the trust
indenture hereinafter authorized, shall be deemed to be of same
issue, and shall be entitled to payment without preference or
priority of the bonds first issued; and if any preference or
priority of the bonds first issued is provided for in the ordinance
or ordinances authorizing the issuance of the bonds first issued or
in said trust indenture, such preference or priority shall not
extend to an amount exceeding ten percent of the original issue.
Prior to the preparation of the definitive bonds, interim
certificates may, under like restrictions, be issued, exchangeable
for definitive bonds upon the issuance of the latter.
WVC 8-16-13
§8-16-13. Obligations not to bind municipal official or officer or
member of board personally.
No municipal official or officer or member of the board shall
in any event be personally liable upon any contract or obligation
of any kind or character executed under the authority herein
contained, even if said undertaking should thereafter be held ultra
vires.
WVC 8-16-14
§8-16-14. Additional bonds for improvements, etc., of works.
The governing body or bodies may provide by the said ordinance
or ordinances authorizing the issuance of the bonds or in the trust
indenture hereinafter referred to, that additional bonds may
thereafter be authorized and issued at one time, or from time to
time, under such limitations and restrictions as may be set forth
in said ordinance or ordinances, or trust indenture, or all of
these, for the purpose of improving, renovating, extending,
enlarging, increasing, equipping or repairing (including
replacements) the works when deemed necessary in the public
interest, such additional bonds to be secured, and be payable from
the revenues of the works, as provided for in section nine of this
article.
WVC 8-16-15
§8-16-15. How proceeds of bonds applied.
All moneys received from the sale of any bonds issued under
the authority of this article, after reimbursements and repayments
to said municipality or municipalities of all amounts advanced for
preliminary expenses, as provided in section six of this article,
shall be applied solely to the payment of the cost of the project,
or to the appurtenant sinking fund, and there shall be, and there
is hereby, created and granted a lien upon such moneys, until so
applied, in favor of the holders of the bonds or the trustees
hereinafter provided for.
WVC 8-16-16
§8-16-16. Bonds secured by trust indenture between municipality or
municipalities and corporate trustee.
In the discretion and at the option of the governing body or
bodies such bonds may be secured by a trust indenture by and
between such municipality or municipalities and a corporate
trustee, which may be a trust company or banking institution having
powers of a trust company within or without the state. The
ordinance or ordinances authorizing the issuance of the revenue
bonds, and fixing the details thereof, may provide that such trust
indenture may contain such provisions for protecting and enforcing
the rights and remedies of bondholders as may be reasonable and
proper, not in violation of law, including covenants setting forth
the duties of the municipality or municipalities and the board in
relation to the construction, reconstruction, establishment,
acquisition, improvement, renovation, extension, enlargement,
increase and equipment of the project and the repair (including
replacements), maintenance, operation and insurance thereof, and
the custody, safeguarding and application of all moneys, and may
provide that the project shall be contracted for, carried out and
paid for, under the supervision and approval of the consulting
engineers employed or designated by the board and satisfactory to
the original bond purchasers, their successors, assignees or
nominees, who may be given the right to require the security given
by contractors and by any depository of the proceeds of bonds or
revenues of the works or other moneys pertaining thereto be
satisfactory to such purchasers, their successors, assignees or
nominees. Such indenture may set forth the rights and remedies of the bondholders or such trustee, or both. Except as in this
article otherwise provided, the governing body or bodies may
provide by ordinance or ordinances or in such trust indenture for
the payment of the proceeds of the sale of the bonds and the
revenues of the works to such officer, board or depository, as such
body or bodies may determine for the custody thereof, and for the
method of distribution thereof, with such safeguards and
restrictions as such body or bodies may determine.
WVC 8-16-17
§8-16-17. Sinking fund; sinking fund commission; transfer of
funds; purchase of outstanding bonds.
Before the issuance of any such bonds, the governing body or
bodies shall, by ordinance or ordinances, provide for a sinking
fund for the payment of the bonds and the interest thereon, and the
payment of the charges of banking institutions or trust companies
for making payment of such bonds and interest, out of the net
revenues of said works, and shall set aside and pledge a sufficient
amount of the net revenues of the works hereby defined to mean the
revenues of the works remaining after the payment of the reasonable
expenses of repair (including replacements), maintenance and
operation, such amount to be paid by the board into the sinking
fund at intervals, to be determined by ordinance or ordinances
adopted prior to the issuance of the bonds, for (a) the interest
upon such bonds as such interest shall fall due; (b) the necessary
fiscal agency charges for paying bonds and interest; (c) the
payment of the bonds as they fall due, or if all bonds mature at
one time, the proper maintenance of a sinking fund sufficient for
the payment thereof at such time; and (d) a margin for safety and
for the payment of premium upon bonds retired by call or purchase
as herein provided, which margin, together with unused surplus of
such margin carried forward from the preceding year and the amounts
set aside as reserves out of the proceeds from the sale of the
bonds, or from the revenues of said works, or from both, shall
equal ten percent of all other amounts so required to be paid into the sinking fund. Such required payments shall constitute a first
charge upon all the net revenues of the works. Prior to the
issuance of the bonds, the board may, by ordinance or ordinances,
be given the right to use or direct the trustee or the state
sinking fund commission to use such sinking fund, or any part
thereof, in the purchase of any of the outstanding bonds payable
therefrom, at the market prices thereof, but not exceeding the
price, if any, at which the same shall in the same year be payable
or redeemable, and all bonds redeemed or purchased shall forthwith
be cancelled, and shall not again be issued. After the payments
into the sinking fund as herein required and after reserving an
amount deemed by the board sufficient for repair (including
replacements), maintenance and operation for an ensuing period of
not less than twelve months and for depreciation, the board may at
any time in its discretion transfer all or any part of the balance
of the net revenues into the sinking fund or into a fund for
improvement, renovation, extension, enlargement, increase or
equipment for or to the works, or the governing body or bodies may,
notwithstanding the provisions of section twenty, article thirteen
of this chapter, transfer all or any part of the balance of the net
revenues to the general or any special fund of the municipality or
municipalities and use such revenues for any purpose for which such
general or special fund may be expended.
All amounts for the sinking fund and interest, as and when set
apart for the payment of same, shall be remitted to the state sinking fund commission at such periods as shall be designated in
the ordinance or ordinances, but in any event at least thirty days
previous to the time interest or principal payments become due, to
be retained and paid out by said commission consistent with the
provisions of this article and the ordinance or ordinances pursuant
to which such bonds have been issued. The state sinking fund
commission is hereby authorized to act as fiscal agent for the
administration of such sinking fund under any ordinance or
ordinances passed or adopted pursuant to the provisions of this
article and shall invest all sinking funds as provided by general
law.
WVC 8 - 16 - 18
PART VI. IMPOSITION OF RATES, FEES OR CHARGES.
§8-16-18. Rates, fees or charges for services rendered by works.
The governing body shall have plenary power and authority and
it shall be its duty, by ordinance, to establish and maintain just
and equitable rates, fees or charges for the use and services
rendered, or the improvement or protection of property, not to
include highways, road and drainage easements, and/or stormwater
facilities constructed, owned and/or operated by the West Virginia
division of highways, provided or afforded, by such works, to be
paid by the person using the same, receiving the services thereof,
or owning the property improved or protected thereby, and may
readjust rates, fees or charges from time to time.
When two or more municipalities take joint action under the
provisions of this article, the rates, fees or charges shall be
established by each participating municipality, with the
concurrence of the other participating municipality or
municipalities as to the amount of the rates, fees or charges, and
such rates, fees or charges may be the same with respect to each
municipality, or they may be different.
Rates, fees or charges heretofore or hereafter established and
maintained for the improvement or protection of property, not to
include highways, road and drainage easements, and/or stormwater
facilities constructed, owned and/or operated by the West Virginia
division of highways, provided or afforded by a municipal flood
control system or flood walls, to be paid by the person owning the property improved or protected thereby, shall be collectible and
enforceable from the time provided in any such ordinance, any
provision of this or any other law to the contrary notwithstanding,
if, at such time, such works, though not yet fully completed, are
nearing completion and the governing body is reasonably assured
that the works will be completed and placed in operation without
unreasonable delay.
All rates, fees or charges shall be sufficient in each year
for the payment of the proper and reasonable expenses of repair
(including replacements), maintenance and operation of the works,
and for the payment of the sums herein required to be paid into the
sinking fund. Revenues collected pursuant to the provisions of
this section are considered the revenues of the works. No such
rates, fees or charges shall be established until after a public
hearing at which all the users of the works and owners of the
property served, or to be served thereby, and others interested,
shall have an opportunity to be heard concerning the proposed
rates, fees or charges.
After introduction of the proposed ordinance fixing the rates,
fees or charges and before the same is finally adopted, notice of
such hearing, setting forth the proposed schedule of such rates,
fees or charges, shall be given by publishing the same as a Class
I-0 legal advertisement in compliance with the provisions of
article three, chapter fifty-nine of this code, and the publication
area for the publication shall be such municipality or each such municipality, as the case may be. Said notice shall be published
at least five days before the date fixed in such notice for the
hearing, which hearing may be adjourned from time to time. No
other or further notice to parties in interest shall be required.
After such hearing the ordinance establishing rates, fees or
charges, either as originally proposed or introduced, or as
modified and amended, shall be adopted and put into effect. A copy
of the schedule of such rates, fees and charges so established
shall be kept on file in the office of the board having charge of
such works, and also in the office of the governing body or bodies,
and shall be open to inspection by all parties in interest.
The rates, fees or charges so established for any class of
users or property served shall be extended to cover any additional
class of users or property thereafter served which fall within the
same class, without the necessity of any hearing or notice. Any
change or adjustment of rates, fees or charges may be made in the
same manner as such rates, fees or charges were originally
established as provided in this section. The aggregate of the
rates, fees or charges shall always be sufficient for the expenses
of repair (including replacements), maintenance and operation, and
for the sinking fund payments.
If any rate, fee or charge so established shall not be paid
within thirty days after the same is due, the amount thereof,
together with a penalty of ten percent and reasonable attorney's
fees, may be recovered by the board in a civil action in the name of the municipality or municipalities, and in the case of rates,
fees or charges due for services rendered, such rates, fees or
charges, if not paid when due, may, if the governing body so
provide in the ordinance provided for under section seven of this
article, constitute a lien upon the premises served by such works,
which lien may be foreclosed against such lot, parcel of land or
building so served, in accordance with the laws relating to the
foreclosure of liens on real property. Upon failure of any person
receiving any such service to pay for the same when due, the board
may discontinue such service without notice.
WVC 8-16-18a
§8-16-18a. Pledge of the hotel occupancy tax; contribution of
revenues to building commission.
In addition to the rates or charges authorized to be pledged
and expended for the security and payment of bonds as provided in
this article, the governing body issuing such bonds shall have
plenary power and authority to pledge and expend for the security
and payment of such bonds all, or any part, of the revenues which
are derived from the hotel occupancy tax which a municipality may
impose pursuant to section three, article thirteen of this chapter
and which are specifically dedicated by such governing body for any
purpose or purposes set forth in section three, article thirteen of
this chapter. All such sums which are so pledged shall be deemed
"revenues of the works" for all purposes of the provisions of this
article. The governing body shall also have the power and
authority to contribute all, or any part of, the revenues derived
from said hotel occupancy tax to a building commission created by
such governing body pursuant to article thirty-three, chapter eight
of this code for such lawful purposes which such building
commission shall determine and which are set forth in section
three, article thirteen of this chapter, including payment of
revenue bonds issued by such building commission.
WVC 8-16-19
§8-16-19. Appeal to public service commission from rates fixed.
If any party in interest is dissatisfied with the rates fixed
under the provisions of the immediately preceding section of this
article, such party shall have the right to appeal to the public
service commission at any time within thirty days after the fixing
of such rates by the governing body, but the rates so fixed by the
governing body shall remain in full force and effect, until set
aside, altered or amended by the public service commission.
WVC 8-16-20
PART VII. ACCOUNTING SYSTEM AND RECORDS.
§8-16-20. Accounting system; yearly audit; custodian of funds.
Any municipality or municipalities issuing revenue bonds under
the provisions of this article shall install and maintain a proper
system of accounting, showing the amount of revenues received and
the application of the same, and the governing body or bodies
shall, at least once a year, cause such accounts to be properly
audited by a competent auditor, and the report of such auditor
shall be open for inspection at all proper times to any taxpayer or
resident of said municipality or municipalities, or person
receiving service from said works, or any holder of bonds issued
under the provisions of this article, or anyone acting for and in
behalf of such taxpayer, resident, person or bondholder. The
treasurer of such municipality or each such municipality, or other
official or institution specifically charged with the duty, shall
be the custodian or custodians of the funds derived from income
received from said works, and shall give proper bond or bonds for
the faithful discharge of his or its or their duties as such
custodian or custodians, which bond or bonds shall be fixed and
approved by the governing body or bodies. All of the funds
received as income from said works under the provisions of this
article and all funds received from the sale of revenue bonds
issued therefor shall be kept separate and apart from other funds
of the municipality or municipalities, and separate accounts shall
be maintained for the several items required to be set up by the
provisions of section seventeen of this article.
WVC 8 - 16 - 21
PART VIII. RATES, FEES OR CHARGES FOR MUNICIPALITIES.
§8-16-21. Governmental entities to pay established rates, fees or
charges for services rendered to it or them.
(a) The municipality or municipalities issuing such bonds
shall be subject to the same rates, fees or charges established as
provided in this article, or to rates, fees or charges established
in harmony therewith, for service rendered to the municipality or
municipalities and shall pay such rates, fees or charges, when due,
from corporate funds, and the same shall be considered to be a part
of the revenues of the works as defined in this article, and may be
applied as provided in this article, for the application of such
revenue.
(b) The municipality or municipalities and any county, state
and federal government served by the services of the stormwater
system shall be subject to the same rates, fees or charges
established as provided in this article for stormwater services, or
to rates, fees or charges established in harmony therewith, for
service rendered to the governmental entity and shall pay such
rates, fees or charges, when due, from corporate funds, and the
same is considered to be a part of the revenues of the works as
defined in this article, and may be applied as provided in this
article, for the application of such revenue. However, no rates,
fees or charges for stormwater services may be assessed against
highways, road and drainage easements, and/or stormwater facilities
constructed, owned and/or operated by the West Virginia division of highways without the express agreement of the commissioner of
highways.
WVC 8-16-22
PART IX. LIENS AND PROTECTION OF BONDHOLDERS.
§8-16-22. Statutory mortgage lien upon works created.
There shall be and there is hereby created and granted a
statutory mortgage lien upon such municipal public works
constructed, reconstructed, established, acquired, improved,
renovated, extended, enlarged, increased, equipped or repaired
(including replacements) under the provisions of this article,
which shall exist in favor of the holder of said bonds, and each of
them, and to and in favor of the holder of the coupons attached to
said bonds, and such municipal public works shall remain subject to
such statutory mortgage lien until payment in full of the principal
of and interest upon said bonds.
WVC 8-16-23
§8-16-23. Acquisition of property on which lien exists.
No property shall be acquired under the provisions of this
article upon which any lien or other encumbrance exists, unless at
the time such property is acquired a sufficient sum of money be
deposited in trust to pay and redeem such lien or encumbrance in
full.
WVC 8-16-24
§8-16-24. Protection and enforcement of rights of bondholders,
etc.; receivership; effect of receivership on lease
agreement.
Any holder of any such bonds, or any of the coupons attached
thereto, and the trustee, if any, except to the extent that the
rights herein given may be restricted by the ordinance authorizing
the issuance of the bonds or by the trust indenture, may by civil
action, mandamus or other proper proceeding enforce the statutory
mortgage lien created and granted in section twenty-two of this
article, protect and enforce any and all rights granted hereunder
or under any such ordinance or trust indenture, and may enforce and
compel performance of all duties required by the provisions of this
article or by any such ordinance or trust indenture to be performed
by the municipality or municipalities, or by the board or any
officer, including the making and collecting of reasonable and
sufficient rates or charges for services rendered by the works. If
there be default in the payment of the principal of or interest
upon any of the bonds, or of both principal and interest, any court
having jurisdiction shall appoint a receiver to administer the
works on behalf of the municipality or municipalities, and the
bondholders or trustee, or both, except as so restricted, with
power to charge and collect rates or charges sufficient to provide
for the payment of the expenses of repair (including replacements),
maintenance and operation, and also to pay any bonds and interest
outstanding, and to apply the income or other revenue in conformity with this article, and the said ordinance or trust indenture, or
both, and the power herein provided for the appointment of a
receiver and the administration by the court of the works on behalf
of the municipality or municipalities, and the bondholders or
trustee, or both, shall apply to cases where such works are
operated by a lessee of the municipality or municipalities as well
as to cases where works are operated by the municipality or
municipalities. In case a receiver is appointed for works operated
by a lessee of a municipality or municipalities, the lease
agreement then existing between the municipality or municipalities
and the lessee ipso facto thereby shall be terminated and all
property, equipment, bills receivable and assets of every kind,
used in connection with the operation of such works, shall pass to
the receiver and upon the termination of such receivership, such
works, equipment, property, bills receivable and assets of every
kind then in the hands of the receiver thereupon shall pass to the
municipality or municipalities.
WVC 8-16-25
PART X. CONSTRUCTION; EXTRATERRITORIAL JURISDICTION.
§8-16-25. Article confers additional power and authority;
extraterritorial jurisdiction.
The power and authority herein granted shall be in addition to
and not in derogation of any power and authority vested in any
municipality under any constitutional, statutory or charter
provisions which may now or hereafter be in effect. For all
purposes of this article, municipalities shall have jurisdiction
for ten miles outside of the corporate limits thereof, except where
such zone would overlap with the zone of another municipality, in
which event the meridian line of the overlapping zone shall be the
dividing line of their respective jurisdictions, except that one
municipality shall have jurisdiction within such ten-mile zone and
may overlap into the zone of another municipality or municipalities
with the consent thereof.
WVC 8-16-26
§8-16-26. Construction of power and authority conferred.
This article shall, without reference to any other statute or
charter provision, be deemed full authority for the construction,
reconstruction, establishment, acquisition, improvement,
renovation, extension, enlargement, increase, equipment, repair
(including replacements), maintenance and operation of the works
herein provided for, and for the issuance and sale of the bonds by
this article authorized, and shall be construed as an additional
alternative method therefor, and for the financing thereof, and no
petition or other or further proceeding in respect to any such
project, or to the issuance or sale of bonds under this article,
and no publication of any ordinance, notice or proceeding relating
to any such project, or to the issuance or sale of such bonds shall
be required, except such as are prescribed in this article, any
provisions of other statutes of the state to the contrary
notwithstanding.
WVC 8-16-27
§8-16-27. Article liberally construed.
This article being necessary for the public health, safety and
welfare shall be liberally construed to effectuate the purposes
thereof.
WVC 8-16-28
§8-16-28. Reference to "municipal authorities" or "municipal
authority" elsewhere in law to mean "governing body"
for the purposes of this article only.
In elaboration of the provisions of section eight, article one
of this chapter, wherever in this code, in any act, in general law,
elsewhere in law, in any charter, in any ordinance, resolution or
order, or in any ordinance, resolution or order of a county court,
reference is made to the term "municipal authorities" or "municipal
authority" within the meaning of the provisions of former article
four-a of this chapter, such reference shall henceforth be read,
construed and understood to mean "governing body" as that term is
used in this article sixteen only.
Note: WV Code updated with legislation passed through the 2012 1st Special Session