70-503 Acquisition, extension, and improvements; pledge of earnings or profits authorized. - Nebraska Statutes

70-503. Acquisition, extension, and improvements; pledge of earnings or profits authorized.In lieu of the issuance of bonds or the levy of taxes as otherwise by law provided, and in lieu of any other lawful methods or means of providing for the payment of indebtedness, any city, village, or public electric light and power district within this state shall have the power and authority by and through its governing body or board of directors, to provide for or to secure the payment of the cost or expenses of purchasing, constructing, or otherwise acquiring, extending and improving any real or personal property necessary or useful in its operation of any electric light and power plant, distribution system or transmission lines, by pledging, assigning, or otherwise hypothecating, the net earnings or profits of such electric light and power district, city or village, derived, or to be derived, from the operation of such electric light and power plant, distribution system or transmission lines, and to that end, to enter into such contracts and to issue such warrants or debentures as may be proper to carry out the provisions of this section. SourceInitiative Law 1930, No. 324, § 3; Laws 1931, c. 116, § 3, p. 337; C.S.Supp.,1941, § 70-603; R.S.1943, § 70-503.AnnotationsWhere city does not own light plant, revenue bonds for construction of same cannot be issued without an authorizing election. Nacke v. City of Hebron, 155 Neb. 739, 53 N.W.2d 564 (1952).Revenue bonds for extension or enlargement of existing electric distribution system can be issued without vote of electors. Slepicka v. City of Wilber, 150 Neb. 376, 34 N.W.2d 646 (1948).A village may extend or enlarge its existing electric light plant and issue warrants pledging the future earnings of the plant in consideration therefor without obligating the municipality for their payment. Southern Nebraska Power Co. v. Village of Deshler, 130 Neb. 598, 265 N.W. 880 (1936).In a condemnation proceeding by a city against the property of a power company, the company cannot raise the question of how the city will obtain funds to pay for the property taken. Central Power Co. v. Nebraska City, 112 F.2d 471 (8th Cir. 1940).