§ 1230-j. Imposition and disposition of fees, rates or charges.
1.The\nwater board shall establish, fix and revise, from time to time, fees,\nrates or other charges for the use of, or services furnished, rendered\nor made available by, all projects, the facilities and system owned,\nleased or utilized by the water board pursuant to this title in an\namount at least sufficient at all times so as to provide funds in an\namount sufficient, together with other revenues available to the board,\nif any, (a) to pay to the authority, in accordance with any agreement\nwith the authority, an amount sufficient for the purpose of paying the\nprincipal of and the interest on the outstanding bonds of the authority\nas the same shall become due and payable and maintaining or funding a\ncapital or debt
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§ 1230-j. Imposition and disposition of fees, rates or charges. 1. The\nwater board shall establish, fix and revise, from time to time, fees,\nrates or other charges for the use of, or services furnished, rendered\nor made available by, all projects, the facilities and system owned,\nleased or utilized by the water board pursuant to this title in an\namount at least sufficient at all times so as to provide funds in an\namount sufficient, together with other revenues available to the board,\nif any, (a) to pay to the authority, in accordance with any agreement\nwith the authority, an amount sufficient for the purpose of paying the\nprincipal of and the interest on the outstanding bonds of the authority\nas the same shall become due and payable and maintaining or funding a\ncapital or debt service reserve fund therefor, if any, or any other fund\ndetermined necessary by the authority, and, to the extent requested by\nthe city or any municipality in, or annually pursuant to, any agreement,\nto pay to the city or any municipality, in accordance with any\nagreement, an amount sufficient for the purpose of paying the principal\nof and interest on general obligation bonds of the city or any\nmunicipality issued for or allocable to the facilities of the system, as\nthe same shall become due and payable, and to maintain or fund reserves\ntherefor, (b) to pay to the city or any municipality, in accordance with\nany agreement, an amount sufficient for the purpose of paying the costs\nof administering, maintaining, repairing and operating and the cost of\nconstructing capital improvements to the system, (c) to pay to the city\nor any municipality in accordance with any agreement entered into\npursuant to section twelve hundred thirty-h of this title an amount\nsufficient for the purpose of paying liabilities issued for or allocable\nto the system, as the same shall become due and payable, (d) to pay to\nthe city or any municipality, in accordance with this title or any\nagreement entered into pursuant to this title, an amount sufficient for\nthe purpose of paying any payment in lieu of taxes as the same shall\nbecome due and payable, (e) to raise an amount sufficient for the\npurpose of paying the costs of administering, managing, maintaining,\nrepairing and operating any system facility, (f) to meet any\nrequirements of any agreement, including requirements relating to the\nestablishment of reserves for renewal and replacement and for\nuncollected rates, fees or other charges and covenants respecting rates,\n(g) to pay all other reasonable and necessary expenses of the authority\nand the water board in relation thereto, and (h) to pay or provide for\nsuch other purposes or projects as the water board considers appropriate\nand in the public interest.\n 2. There is hereby established in the custody of the water board a\nspecial fund to be known as the local water fund. Such fund shall\nconsist of the revenues derived from the fees, rates, rents and service\ncharges established, charged and collected pursuant to this title and\nany other income earned or moneys received by the water board. Revenues\nin the local water fund shall be kept separate and shall not be\ncommingled with any other moneys in the custody of the water board.\nSubject to any agreements made by the water board in connection with the\nissuance of any bonds of the authority, all moneys, properties and\nassets acquired by the water board, whether as revenues or otherwise,\nshall be held by it in trust for the purposes of carrying out its powers\nand duties, and shall be used and reused in accordance with the purposes\nand provisions of this article.\n 3. The water board shall deposit promptly, to the credit of the local\nwater fund, revenues collected under this article in a bank, banking\nhouse or trust company as may be designated in or pursuant to the\nagreements.\n 4. No fee, rate or other charge shall be established, fixed or revised\nunless and until the water board has held a public hearing at which the\nusers of the system, the owners of property served or to be served and\nother interested persons have had an opportunity to be heard concerning\nthe same. Notice of such public hearing shall be published by the water\nboard not less than ten nor more than twenty days before the date set\ntherefor in a newspaper or newspapers having general circulation in the\nservice area, as shall be designated by the water board. Such notice\nshall set forth the date, time and place of such hearing and shall\ninclude a brief description of the matters to be considered at such\nhearing. A copy of the notice shall be filed in the office of the\nsecretary of the water board and shall be available for inspection by\nthe public. At all such hearings, any users of the system, owners of\nproperty served or to be served and any other interested persons shall\nhave an opportunity to be heard concerning the matters under\nconsideration. Any decision of the water board on matters considered at\nsuch public hearing shall be in writing and be made available in the\noffice of the secretary of the water board for public inspection. Such\ndecision shall be published in a newspaper or newspapers having a\ngeneral circulation in the service area as shall be designated by the\nwater board not later than thirty days after such decision is made. The\nfees, rates or other charges so established for any class of users of\nproperty served shall be extended to cover any additional premises\nthereafter served which are within the same class, without the necessity\nof a hearing thereon.\n 5. The fees, rates or other charges established, fixed and revised\nfrom time to time by the water board shall be collected by the water\nboard at such times and in such manner as may be determined by the rules\nand regulations adopted by the water board consistent with the\nprovisions of this title.\n 6. Such fees, rates or other charges, if not paid when due, shall\nconstitute a lien upon the premises served and a charge against the\nowners or users thereof, which lien and charge shall bear interest at\nthe same rate as would unpaid taxes of the city. Such lien shall take\nprecedence over all other liens or encumbrances, except taxes, and may\nbe foreclosed against the lot or building served in the same manner as a\nlien for such taxes. The amount which remains due and unpaid for sixty\ndays may, with interest thereon, at the same rate as unpaid city taxes\nand with reasonable attorneys' fees, be recovered by the water board in\na civil action in the name of the water board against such owners. The\ncity and any state agency or municipality in the service area shall be\nsubject to the same fees, rates, rents or other charges under the same\nconditions as other users of the system. All rights, powers, duties,\nobligations and functions provided by law with respect to the fixing of\ncharges or rates for the supply of water, wastewater or storm water\nservices to users outside the city, shall be deemed to apply, as\nappropriate, to the water board established pursuant to this title.\n 7. The water board shall pay to the authority such amounts at such\ntimes and in such manner as may be provided in the agreement by and\namong the authority, the water board, the city, and any municipality\nconsistent with the priorities set forth in such agreement. There is\nhereby created a lien, by this title made a statutory lien within the\nmeaning of the uniform commercial code and any other state or federal\nlaw, upon the gross revenues of the water board, in favor of the payment\nof all amounts due pursuant to such agreement and in the order and\npriority set forth therein and which lien shall be a first lien upon\nsuch gross revenues. The gross revenues so subject to such statutory\nlien shall be and remain subject to such statutory lien until the\npayment in full of each such item in accordance with such priority. Said\nstatutory lien shall not be construed to give any holder or owner of any\nbond of the authority power to compel the sale of any system facility.\n 8. If there be any default by the water board, in the making of the\npayments to the authority required under this title, as a result of the\nfailure by the water board to impose sufficient fees, rates or other\ncharges, the authority may petition for the appointment by any court\nhaving jurisdiction in any proper action of a receiver to administer on\nbehalf of the water board, under the direction of said court, the\naffairs of the water board in order to achieve revenues at least\nsufficient to make such payments; and by and with the approval of said\ncourt, to establish, fix and revise, from time to time, fees, rates or\nother charges at least sufficient therefor in conformity with this\ntitle, and the resolution or trust indenture of the authority providing\nfor the issuance of its bonds and in accordance with such orders as the\ncourt shall make.\n 9. The water board shall prepare and transmit to the city or\nmunicipality in the service area of the water board, on or before the\nfirst day of December in each year, a list of those persons or property\nowners within the city or such municipality who are in arrears in the\npayment of fees, rates, or other charges for a period of sixty days or\nmore after the last day fixed for payment thereof without penalty. The\nlist shall contain a brief description of the properties for which the\nservices were provided, the names of the persons liable to pay for the\nsame and the amounts chargeable to each, including applicable penalties\nand interest. The city or such municipality shall levy or cause to be\nlevied such sums against the properties liable and shall state the\namount thereof in a separate column in the annual tax rolls of such\nmunicipality under the name of "delinquent water or wastewater or storm\nwater charges, if any". Such amounts, as and when collected by the city\nor such municipality, shall be paid over to the water board. All of the\nprovisions of the tax laws of the state covering the enforcement and\ncollection of unpaid taxes of an applicable municipality shall apply to\nthe collection of such unpaid fees, rates or other charges. In the event\nthat the enforcement of unpaid taxes, including unpaid delinquent water\nboard charges, does not yield moneys sufficient to pay in full all\nunpaid taxes including unpaid delinquent water board charges, the amount\nof unpaid water board charges to be paid to the water board shall be\nprorated.\n 10. The public service commission shall have no jurisdiction over the\nwater board or the authority with respect to the regulation of the fees,\nrates or other charges established, fixed or revised by the water board\nexcept as provided by law with respect to the supply of water to users\noutside the city or the service area.\n