(1) Any public agency may, pursuant to a duly adopted resolution of the governing authority of such public agency, enter into contracts with the district for the district to acquire, construct, lease, improve, extend, operate or maintain a waterworks or water supply system or any part thereof or interest therein for the furnishing of water to the public agency; such contracts shall obligate the public agency to make payments to the district or to a trustee in amounts which shall be sufficient to enable the district to defray the expenses of administering, operating and maintaining its waterworks and water supply system, to pay interest and principal (whether at maturity or upon sinking fund redemption) on bonds of the district issued pursuant to this act and to fund reserves for debt service, for operation and maintenance and for renewals and replacements, and to fulfill requirements of any rate covenant with respect to debt service coverage contained in any resolution, trust indenture or other security agreement relating to the bonds of the district issued pursuant to this act. Any public agency shall have the power to enter into such contracts with the district as in the discretion of the governing authorities thereof would be in the best interest of such public agency. Such contracts may include a pledge of the full faith and credit of such public agency for payment of such amounts due under such contracts. Any such contract may provide for the sale or lease to or use of by the district of the waterworks, the water supply system or any part thereof of the public agency; may provide that the district shall operate the waterworks, water supply system or any part thereof of the public agency; may provide that any public agency shall have the right to continued use and/or priority use of the waterworks, water supply system or any part thereof of the district and the water supply made available thereby during the useful life thereof upon payment of reasonable charges therefor; may contain provisions to assure equitable treatment of persons or public agencies who contract with the district pursuant to this act; and may contain such other provisions and requirements as the parties thereto may determine to be appropriate or necessary. Such contracts may extend over any period of time, notwithstanding any provision of law to the contrary, and may extend beyond the life of the waterworks or water supply system or any part thereof or the term of the bonds sold with respect to such facilities or improvements thereto.

(2) The obligations of a public agency arising under the terms of any contract referred to in this act, whether or not payable solely from a pledge of revenues, shall not be included within the indebtedness limitations of the public agency for purposes of any constitutional or statutory limitation or provision. To the extent provided in such contract and to the extent such obligations of the public agency are payable solely from the revenues and other moneys derived by the public agency from the operation of its waterworks or water supply system or any part thereof, such obligations shall be treated as expenses of operating such systems.

(3) Contracts referred to in this section may also provide for payments in the form of contributions to defray the cost of any purpose set forth in the contracts and as advances for the waterworks or water supply system or any part thereof subject to repayment by the district. A public agency may make such contributions or advances from its general fund or surplus fund or from any moneys legally available therefor.

(4) Payments made or to be made to the district by a public agency or other person pursuant to a contract for the waterworks or water supply system or any part thereof and the use of the water made available thereby shall be determined by the method specified in such contract and shall not be subject to approval or review by the Mississippi Public Service Commission.

(5) Subject to the terms of a contract or contracts referred to in this act, the district is hereby authorized to do and perform any and all acts or things necessary, convenient or desirable to carry out the purposes of such contracts, including the fixing, charging, collecting, maintaining and revising of rates, fees and other charges for the services rendered and water supplied to any user of the waterworks or water supply system operated or maintained by the district, whether or not such systems are owned by the district.

(6) The district shall plan any construction of any such waterworks or water supply system, shall enter into such contracts and shall arrange such financing as to assure that the district shall receive in payment under such contracts revenues sufficient to defray all direct and indirect costs, whether administrative, operational or otherwise, of administering, operating and maintaining such waterworks and water supply system, to pay interest and principal (whether at maturity or upon sinking fund redemption) on bonds of the district issued pursuant to this act and to fund reserves for debt service, for operation and maintenance and for renewals and replacements, and to fulfill requirements of any rate covenant with respect to debt service coverage contained in any resolution, trust indenture or other security agreement relating to the bonds of the district issued pursuant to this act. To that end, the district may not expend money, including taxes levied pursuant to Section 51-9-131, Mississippi Code of 1972, for construction, operation or maintenance of any waterworks or water supply system authorized, acquired, constructed or improved under this act in excess of the revenues received by the district pursuant to contracts authorized by this act or otherwise available from the operation of such waterworks or water supply system.