(1) The transportation commission, counties, and municipalities have the following powers, in addition to powers which they may already have, to contract with one another concerning streets, roads, and highways. (2) The board of county commissioners of any county is authorized to contract with the transportation commission or with any city or town within the county, or with both the transportation commission and a city or town, for the construction or maintenance, or both, of county or state highways within the county or within the county and the city or town. Adjoining counties may also contract with each other for construction or maintenance, or both, of public highways where roads in one county may be constructed or maintained, or both, more economically by an adjoining county. (3) Towns and cities are authorized to contract with the transportation commission or with the board of county commissioners, or with both the transportation commission and the board of county commissioners, for the construction or maintenance, or both, of city streets or county or state highways within the town or city. (4) Such contracts may extend for an indefinite period of time. The expenditures to be required each year shall be separately budgeted, and where the contract may extend over more than one budgeting period, the entire amount required by such contract need not be budgeted before such contract is made. (5) Existing valid contracts between the parties enumerated in subsections (2) and (3) of this section shall not automatically be voided by the adoption of this part 1 but are expressly confirmed and ratified; but, upon the agreement of all parties to a contract, such contract may be modified in accordance with this part 1.
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