Nebraska Revised Statute 19-1402
Municipal heat, light, and ice plants; cost; how defrayed.
The cost of purchasing, constructing, maintaining, and improving utilities under section 19-1401 may be defrayed by the levy of a tax of not to exceed three and five-tenths cents on each one hundred dollars upon the taxable value of all the taxable property in such city or village in any one year for a heating or lighting plant and of not to exceed two and one-tenth cents on each one hundred dollars upon the taxable value of all the taxable property in such city or village in any one year for an ice plant, or when such tax is insufficient for the purpose, the cost of such utilities may be defrayed by the issuance of bonds of the municipality.
- Laws 1919, c. 181, § 2, p. 405;
- C.S.1922, § 4397;
- C.S.1929, § 18-102;
- R.S.1943, § 19-1402;
- Laws 1953, c. 287, § 36, p. 952;
- Laws 1979, LB 187, § 82;
- Laws 1992, LB 719A, § 82;
- Laws 2019, LB193, § 116.
Two methods are provided of raising funds for a heating or lighting plant, one by a direct levy of a tax and the other by a bond issue, but this section does not provide specifically any method for raising funds to maintain and improve them. Interstate Power Co. v. City of Ainsworth, 125 Neb. 419, 250 N.W. 649 (1933).
Where a city of the second class has on hand sufficient available money it may use the same to pay the purchase price of a municipal lighting utility. The word "may" in the statute authorizing such city to defray the cost of a municipal lighting plant by means of a tax levy or a bond issue does not necessarily mean "shall" or exclude other methods. Carr v. Fenstermacher, 119 Neb. 172, 228 N.W. 114 (1929).
A city was required to levy a tax for the payment of a judgment for amount of cost of constructing two utility plants in excess of bonds the city was authorized to issue. Village of Oshkosh v. State of Nebraska ex rel. Fairbanks, Morse & Co., 20 F.2d 621 (8th Cir. 1927).
The power of a city is not limited to construct a plant to one costing not more than the amount of bonds that may be so issued. Village of Oshkosh v. Fairbanks, Morse & Co., 8 F.2d 329 (8th Cir. 1925).