(a) Such municipal corporation may contract with the State, the federal government, or any appropriate agency thereof, any town, city, or village, any corporation and individuals to make disposal of sewage for such other town, city, village, corporation, or individuals. Such municipal corporation may make sale of sludge or fertilizer byproducts incident to sewage disposal, and the proceeds from sale thereof shall be turned over to the treasury of such sewage disposal district and credited therein as is other income derived under the authority of this chapter.

(b) A municipal corporation is authorized to enter into, with any contracting party or parties, contracts, leases, or lease-purchase agreements with respect to the construction, operation, and maintenance of sewage disposal plants. These contracts may be entered into for terms not to exceed 40 years or the useful life of the plant, whichever is less. (Amended 1983, No. 191 (Adj. Sess.), § 1.)