(1) Except as otherwise provided in subsection (2), the governing body of any local governmental unit which is a member of any such district may, according to the terms of the resolution, levy a special tax, not to exceed two (2) mills, on all of the taxable property in such district, the avails of which shall be paid over to the board of commissioners of the district to be used for preparation and implementation of the district’s water management plan, exclusive of capital expenditures, and operation of the administrative office of the district. Provided, however, that such special tax shall not be levied against any property in any portion of such district where the district has relinquished and surrendered its prior right to provide a particular service, as provided elsewhere in this chapter.

(2) The Board of Commissioners of the Yazoo-Mississippi Joint Water Management District is authorized to expend funds generated from the special tax levy under subsection (1) in connection with projects under the USDA, NRCS Mississippi Delta Comprehensive, Multipurpose Water Resource Plan hereinafter referred to as the “Mississippi Delta Study.” Such projects include low flows, interbasin transfers of new water supplies, on-farm storage reservoirs or conservation, and implementation activities such as the Sunflower River Low Flow Project and Well Field Project in Coahoma County, Mississippi. Expenditures under this subsection may include in-kind expenditures as well as direct expenditures, the cost and expenses of construction, operation and maintenance of the projects, and the cost and expenses of an indirect nature, such as technological assistance, engineering and scientific evaluation and analysis by technical personnel, labor, transportation and any expenditure that is intended to satisfy the districts’ in-kind obligations in connection with the projects. However, the expenditures authorized by this subsection shall not extend to any project that relates to, encompasses or includes effluent treatment facilities or any water supply system to which the Safe Drinking Water Act applies, and any other projects that are determined by the district to be beyond the scope of the Mississippi Delta Study Projects.