Section 1. May Acquire and Operate Water Works and Sewage Disposal Systems: The City of Grand Blanc may acquire, purchase, construct, operate and maintain a water works system in the City of Grand Blanc for the purpose of supplying the City and its inhabitants with pure and wholesome water, and may acquire, operate, extend and maintain a sewage disposal system either within or without the corporate limits of the City, and may acquire property for such water works and sewage disposal systems by purchase, gift or condemnation, whether such property be within or without the corporate limits of the City of Grand Blanc and may fix and provide for the collection of charges for service, covering the cost of such service, the proceeds whereof shall be used exclusively for the purpose of such water works system and sewage disposal system, such systems to be operated as separate public utilities or as one utility, and may provide for a net return to the City from the operation of such utilities of an amount sufficient to pay a fair return on the fair value of the property devoted to such service, excluding from such valuation such portions of the sewage disposal system as may have been paid by special assessment, and may also provide that the charges for such service may be made a lien upon the property served, and if not paid when due provide for the collection thereof in the same manner as other City taxes.
Section 2. May Finance Water Works and Sewage Disposal Systems. The City of Grand Blanc may borrow money on the faith and credit of the City for the purpose of acquiring, owning, operating, maintaining, or extending a water works system, and, or a sewage disposal system for the purposes specified in the preceding section as a public utility or utilities when authorized by a three-fifths vote of the electors of the City voting on the question submitted by the Council at any general or special election called for that purpose. Provided, that the total amount so borrowed shall not cause the total bonded indebtedness of the City, exclusive of special assessment bonds and emergency bonds, to exceed eight percent of the assessed valuation of the property of the City, real and personal, as shown by the last assessment roll of the City as fixed and determined by the Board of Review of the City, and shall not for any purpose exceed the limit of bonded indebtedness as fixed by the general laws of the State. And the City of Grand Blanc may borrow further sums for the purposes heretofore stated in this section and issue mortgage bonds therefor beyond the general limit of the bonded indebtedness prescribed by this Charter.
Provided, that such mortgage bonds issued beyond the general limits of the bonded indebtedness prescribed by this Charter shall not impose any liability upon the City, shall be secured only upon the property and revenues of such public utility or utilities, including the franchise or franchises, stating the terms upon which, in case of foreclosure, the purchaser may operate the same, which franchise or franchises shall in no case extend for a longer period than twenty years from the date of the sale of such utility and franchise on foreclosure. And provided, that said mortgage bonds shall be sold for not less than par, bear interest at a rate not in excess of six percent and the total amount thereof shall not exceed sixty percent of the original cost of the utility. And provided further, that a sinking fund shall be created by setting aside such percentage of the gross or net earnings of the public utility so mortgaged as may be deemed sufficient for the payment of the mortgage bonds at maturity.
Section 3. Council to Direct Operation. The operation of all Municipally owned public utilities shall be under the direct charge of the City Council, or otherwise as the Council may by ordinance provide.
Section 4. Council to Fix Rates. The Council shall have the power subject to the general laws of this State, to fix all rates for Municipally owned public utilities and shall have the power to fix all salaries and other expenses which may be incurred by the operation of all City owned public utilities.
Section 5. Clerk and Treasurer to Audit. The City Clerk and City Treasurer shall act as a Board of Auditors for all City owned public utilities and shall meet every month before the regular meeting of the City Council, at which time they shall make an audit of the books of the City Clerk and City Treasurer and submit a statement of all balances of the City funds to the City Council at its next regular meeting.
Section 6. Auditors to Report. The City Clerk and City Treasurer as a Board of Auditors may require any person or persons employed by the City Council, or who handle funds belonging to the City in connection with any Municipally owned or operated public utility, to submit his, it or their books to said Board of Auditors at any reasonable time. The said Board of Auditors shall report in writing to the City Council at its next regular meeting a statement showing the number of customers of all Municipally owned and operated public utilities other than parking facilities, at the beginning of the month and the number of such customers during the month with the location of the connection the number of such customers whose service has been discontinued during the month, with the location of the connections discontinued, and the whole number of customers at the end of each month. Provided, that at the first meeting of the City Council the City Clerk shall submit a complete list of all light, power, water and sewage disposal customers by name and the location of connections. Also the said Board of Auditors shall submit the amount due the City for public utility service from the customers and the amount paid by each as evidenced by the duplicate receipts and other records of the collector or collectors, and balance the number with the amount turned over to the City Clerk by the collector. And the said Board of Auditors shall file with the City Council a complete statement of such audit and report in writing all customers subscribing for light, power, water or sewage disposal, who are delinquent in their payment for light, power, water or sewage disposal.
Section 7. Parking Facilities as a Public Utility. The City may acquire, establish, construct, extend and maintain facilities for the parking of vehicles within its corporate limits and may fix and collect charges for services and use thereof as a public utility, and for such purpose may acquire by grant, purchase, condemnation or otherwise, the lands necessary therefor, and may by ordinance establish rules and regulations for the operation of such utility and the method of accounting and reporting the receipts and expenditures in connection with the conduct of such utility. The provisions of Sections 1 and 2 of this chapter relative to the borrowing of money and issuing of mortgage bonds are applicable to parking facilities as a public utility for the purposes in this section contained.