The district shall have and exercise all of the powers granted by the act with respect
to municipal services districts created under the act, including, without limitation
the power to acquire, construct, erect, equip, operate and maintain projects and finance
the cost thereof with the proceeds of bonds of the district, which bonds the district
is hereby authorized to issue.
Notwithstanding any provision in this section to the contrary, the county shall, on
behalf of the district, operate, maintain, manage, extend and improve the water system
and the sewer system. The county may issue obligations from time to time, to finance
or refinance improvements or expansions to the water system and sewer system, or for
any other purpose related thereto, which obligations may be secured by a pledge of
and/or lien on the revenues, or any portion thereof. Such obligations may also be
secured by bond resolutions, indentures of trust or other instruments (collectively
the "security document") adopted or entered into by the county. The county may pledge
and/or grant a lien on the revenues, property, or rights to the same, for the purpose
of servicing such obligations pursuant to the security document. The county, on behalf
of the district, shall make such covenants and agreements in the security document
as it deems appropriate, including but not limited to, covenants relating to operation,
maintenance, sale and disposal of the water system and the sewer system, establishment
of rates, fees and charges for the services and products of the water system and sewer
system and covenants relating to the use and disposition of the revenues. For purposes
of the security documents, the revenues, property and rights to the same which are
pledged and or liened pursuant to the security documents shall be considered property
owned by the county. The district shall take no action that will contravene, conflict
with or adversely affect any provision in the security document. The district shall
take all actions requested by the county relating to enforcement of the provisions
of the security document. The holders of any obligations secured by the revenues,
or any portion thereof, and any credit enhancers of such obligations shall be third
party beneficiaries to the provisions of this paragraph. The provisions of this paragraph,
and/or the nature and composition of the governing body of the Hernando County Water
ad Sewer District, as established in Hernando County Resolution 80-4 and modified
by Ordinance 90-03, may not be modified or amended in any manner which materially,
adversely affects the security of the holders of such obligations without the approval
of a majority in aggregate principal amount of the affected holders. For purposes
of this section, credit enhancers of such obligations shall be considered the holders
thereof if they are not in default in their payment obligations related thereto. Within
the parameters described above, the county hereby confirms the establishment of the
district and its ownership of the water system and the sewer system. The county affirms
that it has the unobstructed right to all revenues collected in its capacity as governing
body of the district. In addition, the county may delegate to the district various
functions related to the operation of the water system and the sewer system, subject
to the provisions of the security document.
