Tennessee § 5-16-110 - Municipal annexation or incorporation — Effect on facilities.

§ 5-16-110. Municipal annexation or incorporation — Effect on facilities.

Upon annexation by any municipality, or by including within the corporate territorial limits of any incorporating municipality, of an area including any of the facilities as herein authorized and provided, the municipality and the county legislative body or other governing body shall attempt to reach a written agreement for the allocation and conveyance to the municipality of any or all functions, rights, duties, property, assets or liabilities, in conjunction with such facilities, that justice and reason may require in the circumstances. The annexing or incorporating municipality, for and to the extent that it may choose, shall have the exclusive right to provide such facilities within the annexed or incorporated area, and shall manifest such choice by proper resolution or ordinance at the first meeting of its governing body after the annexation or incorporation. Subject to subdivision (a)(2), any such matters upon which the respective parties are not in written agreement within sixty (60) days after the operative date of such annexation shall be settled by arbitration in accordance with the state laws of arbitration effective at the time of submission to the arbitrators, and § 29-5-101(2) shall not apply to any arbitration arising hereunder. The award so rendered shall be transmitted to the chancery court, and thereupon shall be subject to review in accordance with §§ 29-5-113 — 29-5-115 and 29-5-118. Subdivisions (a)(1) and (2) shall not apply to any city that is being incorporated if that city does not plan to furnish service that would compete with service the county is now furnishing. If there are outstanding bonds or other obligations in conjunction with the public facilities as herein provided, the agreement or arbitration award shall also provide that the municipality will operate such facilities in the annexed or incorporated territory and account for the revenues therefrom in such manner as not to impair the obligations of contract with reference to such bonds or other obligations. The rights vested in the holders of all such outstanding bonds or other obligations shall be fully preserved and in no wise impaired by any agreement or arbitration award. Acts 1961, ch. 166, § 10; impl. am. Acts 1978, ch. 934, §§ 7, 36; T.C.A., § 5-1610; Acts 1980, ch. 489, §§ 1-3, 5.