204.472. 1. Whenever all or any part of a territory located within asewer district that is located in any county of the third classificationwithout a township form of government and with more than forty thousandeight hundred but less than forty thousand nine hundred inhabitants isincluded by annexation within the corporate limits of any city of the thirdclassification with more than sixteen thousand six hundred but less thansixteen thousand seven hundred inhabitants, but is not receiving sewerservice from such district or city at the time of such annexation, the cityand the board of trustees of the district may, within six months after suchannexation becomes effective, develop an agreement to provide sewer serviceto the annexed territory. Such an agreement may also be developed forterritory that was annexed between January 1, 1996, and August 28, 2002,but was not receiving sewer service from such district or such city onAugust 28, 2002. For the purposes of this section, "not receiving sewerservice" shall mean that no sewer services are being sold within theannexed territory by such district or city. If the city and the boardreach an agreement that detaches any territory from such district, theagreement shall be submitted to the circuit court having jurisdiction overthe major portion, and the circuit court shall make an order and judgmentdetaching the territory described in the agreement from the remainder ofthe district and stating the boundary lines of the district after suchdetachment. At such time that the circuit court's order and judgmentbecomes final, the clerk of the circuit court shall file certified copiesof such order and judgment with the secretary of state and with therecorder of deeds and the county clerk of the county or counties in whichthe district is located. If an agreement is developed between a city and asewer district pursuant to this subsection, subsections 2 to 8 of thissection shall not apply to such agreement.
2. In the event that the board of trustees of such district and thecity cannot reach such an agreement, an application may be made by theboard or the city to the circuit court requesting that three commissionersdevelop such an agreement. Such application shall include the name of onecommissioner appointed by the applying party. The second party shallappoint one commissioner within thirty days of the service of theapplication upon the second party. If the second party fails to appoint acommissioner within such time period, the circuit court shall appoint acommissioner on behalf of the second party. Such two named commissionersmay agree to appoint a third disinterested commissioner within thirty daysafter the appointment of the second commissioner. In the event that thetwo named commissioners cannot agree on or fail to appoint the thirddisinterested commissioner within thirty days after the appointment of thesecond commissioner, the circuit court shall appoint the thirddisinterested commissioner.
3. Upon the filing of such application and the appointment of threesuch commissioners, the circuit court shall set a time for one or morehearings and shall order a public notice including the nature of theapplication, the annexed area affected, the names of the commissioners, andthe time and place of such hearings, to be published for three weeksconsecutively in a newspaper published in the county in which theapplication is pending, the last publication to be not more than seven daysbefore the date set for the first hearing.
4. The commissioners shall develop an agreement between the districtand the city to provide sewer service to the annexed territory. Indeveloping the agreement, the commissioners shall consider informationpresented to them at hearings and any other information at their disposalincluding, but not limited to:
(1) The estimated future loss of revenue and costs for the sewerdistrict related to the agreement;
(2) The amount of indebtedness of the sewer district within theannexed territory;
(3) Any contractual obligations of the sewer district within theannexed area; and
(4) The effect of the agreement on the sewer rates of the district.
The agreement shall also include a recommendation for the apportionment ofcosts incurred pursuant to subsections 2 to 8 of this section, includingreasonable compensation for the commissioners, between the city and thedistrict.
5. If the circuit court finds that the agreement provides fornecessary sewer service in the annexed territory, then such agreement shallbe fully effective upon approval by the circuit court. The circuit courtshall also review the recommended apportionment of court costs incurred andthe reasonable compensation for the commissioners and affirm or modify suchrecommendations.
6. The order and judgment of the circuit court shall be subject toappeal as provided by law.
7. If the circuit court approves a detachment as part of theterritorial agreement, it shall make its order and judgment detaching theterritory described in the application from the remainder of the districtand stating the boundary lines of the district after such detachment.
8. At such time that the circuit court's order and judgment becomesfinal, the clerk of the circuit court shall file certified copies of suchorder and judgment with the secretary of state and with the recorder ofdeeds and the county clerk of the county or counties in which the districtis located.
9. The proportion of the sum of all outstanding bonds and debt, withinterest thereon, that is required to be paid to the sewer districtpursuant to this section, shall be the same as the proportion of theassessed valuation of the real and tangible personal property within thearea sought to be detached bears to the assessed valuation of all of thereal and tangible personal property within the entire area of the sewerdistrict.
(L. 2002 S.B. 984 & 985)