(1) Any city of the first class, city of the second class, or incorporated town, hereinafter referred to as a “municipality”, which has received from the Division of Environmental Quality of the Department of Energy and Environment a water pollution control project grant funded from the proceeds of bonds of the division issued pursuant to §§ 8-5-301 — 8-5-318 [repealed] may issue water revenue bonds under the provisions of § 14-234-201 et seq., sewer revenue bonds under the provisions of §§ 14-235-201 — 14-235-224, or combined water and sewer revenue bonds for the purpose of refunding the bonds of the division issued to fund the grant.
(2) The refunding bonds may be combined with other bonds issued by the municipality under the provisions of § 14-234-201 et seq. and §§ 14-235-201 — 14-235-224 into a single issue.
(3) All bonds issued under this section shall in all respects be authorized, sold, issued, and secured in the manner provided for other bonds issued under § 14-234-201 et seq. and §§ 14-235-201 — 14-235-224 pursuant to which the refunding bonds are being issued.