(a) Any city, metropolitan government or county may create a water and wastewater treatment authority in the manner provided for in this part.

(b)

(1) The governing body of the creating governmental entity shall adopt, and its executive officer shall approve, a resolution calling a public hearing on the question of creating an authority.

(2) Notice of the date, hour, place and purpose of such hearing shall be published at least once each week for two (2) consecutive weeks in a newspaper of general circulation in the creating governmental entity, the last such publication to be at least one (1) week prior to the date set for the hearing.

(c) The hearing shall be had before the governing body and all interested persons shall have an opportunity to be heard.

(d)

(1) After the hearing, if the governing body determines that the public convenience and necessity require the creation of an authority, it shall adopt, and its executive officer shall approve, a resolution or an ordinance so declaring and creating an authority, which resolution or ordinance shall also designate the name and principal office address of the authority.

(2) A certified copy of the resolution or ordinance shall be filed with the secretary of state of Tennessee, along with the resolution approving the appointment of the board of commissioners as provided for in § 68-221-605, and upon such adoption and filing, the authority shall constitute a body politic and corporate, with all the powers hereinafter provided.

(e)

(1) Whenever an authority shall be created under this part, the creating governmental entity and any participating governmental entity shall enter into an agreement with the authority for the orderly transfer to the authority of the treatment works properties, functions, service area and outstanding obligations.

(2) The agreement may include provisions for the reimbursement of any such governmental entity for its obligations issued for treatment works.