54-40 Joint Exercise of Governmental Powers - North Dakota Statutes

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CHAPTER 54-40JOINT EXERCISE OF GOVERNMENTAL POWERS54-40-01. Agreement - Exercise of joint powers - Bonds.1.Two or more governmental units or municipal corporations having in common any
portion of their territory or boundary, by agreement entered into through action of
their governing bodies, may jointly or cooperatively exercise their respective
separate powers, or any power common to the contracting parties or any similar
powers, including those which are the same except for the territorial limits within
which they may be exercised for the purpose of acquiring, constructing, and
maintaining any building for their joint use. The term "governmental unit" as used in
this section includes every city, county, park district, school district, states and
United States governments and departments of each thereof, and all other political
subdivisions even though not specifically named or referred to herein.2.Two or more counties or cities, or any combination of counties or cities, whether or
not they have in common any portion of their territory or boundary, by agreement
entered into through action of their governing bodies, may jointly or cooperatively
exercise their respective separate powers, or any power common to the contracting
parties or any similar powers, for the purpose of acquiring equipment or constructing
roads, bridges, and road and bridge improvements.3.An agency, department, or institution of this state may enter an agreement with the
state of South Dakota to form a bistate authority to jointly exercise any function that
the entity is authorized by law to perform.Any agreement entered under thissubsection must be submitted to the legislative assembly or, if the legislative
assembly is not in session, to the legislative management for approval or rejection
and may not become effective until approved by the legislative assembly or the
legislative management.4.Counties or cities, or any combination of counties or cities, may jointly issue bonds in
the same manner and for the purposes provided for in chapter 21-03.54-40-02. Agreement to state purpose. Such agreement must state the purpose of theagreement or the power or powers to be exercised, and it must provide for the method by which
the purpose sought shall be accomplished or the manner in which the power or powers shall be
exercised.54-40-02.1. Building management commission for county and city building - Leaseauthority. Any agreement entered into between a county and a city under this chapter for the
acquisition, construction, and maintenance of a building for their joint use by bonds issued
pursuant to section 54-40-03 must provide for a building management commission composed of
elected officials of the county, elected officials of the city, and representatives of the public, with
the exact number of each to be specified in the agreement. The agreement must specify the
powers to be exercised by the building management commission with respect to the acquisition,
construction, and maintenance of the building, and with respect to any lease entered into by the
commission and any noncounty and noncity governmental entity for use of a portion of the
building. Notwithstanding section 48-08-07, a lease of a portion of any building used jointly by a
county and a city pursuant to this section may be for a term longer than two years.54-40-03.Disbursement of funds - Issuance of bonds.The parties to suchagreement may provide for disbursements from public funds, including funds already raised to
buy real estate for public buildings, proceeds of bonds issued pursuant to chapter 21-03, and
other proper funds or properties already on hand, to carry out the purposes of the agreement.
The total amount of bonds issued by a county and a city under this section must be in proportion
to the joint usage of the building by the county and the city and must also consider the tax base
of the county and the tax base of the city. When a county and a city wholly within the countyPage No. 1boundaries propose to issue bonds for the purpose of a building for their joint use, the governing
body of the county may submit to its qualified voters the proposition of issuing bonds in the total
amount required to be borrowed for the building, under an initial resolution and ballot stating the
maximum total principal amount of the bonds and the maximum principal amount thereof for
which the city shall be obligated. In this event the governing body of the city shall adopt an
ordinance or resolution stating the maximum amount of the obligation proposed to be incurred by
the city and the other matters of information required for an initial resolution for bonds under the
provisions of section 21-03-09, which ordinance or resolution shall be subject to referral to the
qualified electors of the city by petition of the percentage of the qualified electors referred to in
chapter 40-12 and upon the conditions and in the manner therein set forth. If the issuance of the
bonds is approved by the required majority of the qualified electors of the county voting thereon,
and if the city ordinance or resolution is not referred or is approved by a majority of the qualified
electors of the city voting thereon, the bonds may be issued by the county and the obligation
incurred by the city. The principal amount of the obligation incurred by the city to the county, as
provided in the agreement, must be a general obligation and indebtedness of the city as referred
to and limited by section 21-03-04 and by section 15 of article X of the Constitution of North
Dakota, and must be deducted from the principal amount of the bonds in determining the net
indebtedness incurred by the county in the issuance thereof. The city shall levy a direct, annual,
irrepealable tax for the payment of its obligation and the interest thereon as required for the
payment of general obligation bonds under the provisions of section 21-03-15, which tax must be
retained by the county auditor in the sinking and interest fund for the county bonds as provided in
section 21-03-41. Each payment of principal, interest, and premium, if any, due with respect to
the county bonds must be the obligation of the city in the proportion that the original principal
amount of the city's obligation bears to the original principal amount of the bonds, for the purpose
of ascertaining the amount of net indebtedness of the city and the county outstanding at any
time, of determining the amounts of taxes required to be assessed and collected annually by the
city and the county for the bond sinking and interest fund, and of determining the amounts of
income from the investment of the sinking and interest fund which are to be credited against the
obligations of the city and county, respectively, and for all other purposes whatsoever. Nothing
herein requires the city-county agreement to be executed before the authorization of the bonds
and the city's obligation thereon.The agreement when executed must fix the relativecontributions of the city and county to the capital cost of the building in a manner consistent with
the maximum net indebtedness authorized to be incurred by each of them, respectively. If so
provided in the agreement, the city may evidence its obligation by the issuance of general
obligation bonds of the city and appropriate the proceeds of its bonds for expenditure in
accordance with the terms of the agreement, and the amount of the county bonds may be
reduced by the amount issued by the city. Funds other than taxes for debt service may be paid
to and disbursed by such agency as may be agreed upon, but the method of disbursement must
agree as far as practicable with the method provided by law for the disbursement of funds by the
parties to the agreement.Strict accountability of all funds and report of all receipts anddisbursements must be provided for.54-40-04. Termination of agreement. Such agreement may be continued for a definiteterm or until rescinded or terminated in accordance with its terms.54-40-05.Agreement shall provide for disposition of property. Such agreementmust provide for the disposition of any property acquired as the result of such joint or cooperative
exercise of powers, and the return of any surplus moneys in proportion to contributions of the
several contracting parties after the purpose of the agreement has been completed.54-40-06. Residence requirement. Residence requirements for holding office in anygovernmental unit do not apply to any officer appointed to carry out any such agreement.54-40-07.Clarification of constitutional authority and effect of other statutes.Repealed by S.L. 1993, ch. 401,