Section 48:1665 - Participation by local government; alternative methods of financingA. For the purposes of this Chapter, provision for a rapid transit system within the regional area is declared to be an essential governmental function and a public purpose.B. Any parish eligible to participate may apply for membership to the board in accordance with rules promulgated by the board. The board, with the approval of the local governing body of each of the participating parishes , subject to the limitations set forth in this Section, shall determine the extent of financial participation and the time or times such financial participation may be required with respect to each of the local governments in order to finance provisions for a rapid transit system through the joint instrumentality of the authority. If such determination contemplates a contractual obligation on the part of a local government to make payments to the authority over a period of time exceeding one year or to issue any bonds or other obligations evidencing indebtedness, such determination shall take the form of a rapid transit contract to be entered into between the authority and the local government. The final execution of a rapid transit contract shall be completed in every instance in the manner hereinafter set forth in this Section. C. As one method of providing the financial participation determined by its local governing body to be its proper share of the cost of financing a rapid transit project or projects, a local government may, in the manner prescribed by law and subject to the conditions and limitations prescribed by law, issue its general obligation bonds, pay over the proceeds thereof to the authority, and thereby complete and make final the execution of the proposed rapid transit contract anticipated by such bond authorization and issuance, and the authority shall agree in such contract to perform for such local government the aforesaid governmental function and to provide specified public transportation services and facilities.D. As an alternative method of providing the financial participation determined by its local governing body to be its proper share of the cost of financing a rapid transit project or projects, a local government may enter into rapid transit contract or contracts calling for the authority to perform for it the aforesaid governmental function and calling for it to make periodic payments to the authority for the public transportation services and facilities contracted for, which payments may include amounts required to defray the periodic principal and interest payments on any obligations issued by the authority for the purpose of financing the cost of any rapid transit project or projects, amounts necessary to establish and maintain reasonable reserves to insure the payment of said debt service, and to provide for renewals, extensions, repairs, and improvements and additions to the rapid transit system, and amounts required to defray any operational deficit which the system or any part thereof may incur from time to time.E. Before a rapid transit contract such as is described in Subsection D of this Section shall become valid and binding on a local government which is a party thereto, the contract must be approved by a majority of the qualified voters of the local government voting in a referendum held in accordance with the laws governing elections at which propositions are submitted to a vote of the electorate. If a majority of those voting in the election vote in favor of the proposition submitted, the rapid transit contract as approved shall become valid and binding in accordance with its terms.F. A local government may select any method provided in this Section to finance the participation required of it in whole or in part, and the selection of one method shall not preclude the selection of another method with respect thereto or with respect to any additional or supplementary participation determined to be necessary.G. When the authority and a local government have completed and fully executed a rapid transit contract in compliance with the requirements of this Chapter, and the voters shall have approved the contract as herein provided, the contract shall constitute an obligation on the part of the local government for the payment of which its good faith and credit are pledged.Added by Acts 1979, No. 439, §1, eff. Aug. 1, 1979.Amended by Acts 2024, No. 402,s. 1, eff. 5/28/2024.Added by Acts 1979, No. 439, §1, eff. 8/1/1979.