§ 114. Costs. The cost of providing a common supply of water may be
financed either by the issuance and sale of the joint obligations of the
contracting municipalities or by individual issuance and sale of
obligations to finance the proportionate share of each contracting
municipality, as such shares shall be fixed pursuant to the contract. In
the event that the acquisition and development of a common water supply
and the construction of a water works system shall be effected by the
individual action of one of the contracting municipalities, it shall be
lawful for any of the other contracting municipalities to make a lump
sum payment to such contracting municipality either from moneys on hand
and available for such purpose or from moneys received from the issuance
and sale of obligations. Nothing herein contained shall prevent the
purchase or condemnation of existing sources of supply, water works
systems or portions thereof necessary for the purposes of the joint
project, provided, however, that there shall be no power to condemn
property the legal title to which is vested in a public corporation,
district corporation or a special improvement district unless the owner
shall consent thereto. In the event that any source of water supply,
water works system or portion thereof owned by one of the contracting
municipalities is acquired for the purposes of the common supply and
joint water works system, such municipality may be allowed a credit
against its share of the cost equal to the agreed value of the assets so
acquired.