(a)The charges and receipts of the department shall only be used and applied to pay the interest and principal of the sewage disposal bonds of the municipal corporation, the expense of maintenance and operation of the sewage system, or other expenses of the sewage system.
(b)The charges and receipts also may be used to develop a dedicated fund that may be created by the board to finance major rehabilitation, major maintenance, and upgrade costs for the sewer system. This fund may be established by an annual set-aside of up to 15 percent of the normal operations, maintenance, and bond payment costs, except that with respect to subsurface leachfield systems, the annual set-aside may equal up to 100 percent of these costs. The fund shall not exceed the estimated future major rehabilitation,
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(a) The charges and receipts of the department shall only be used and applied to pay the interest and principal of the sewage disposal bonds of the municipal corporation, the expense of maintenance and operation of the sewage system, or other expenses of the sewage system.
(b) The charges and receipts also may be used to develop a dedicated fund that may be created by the board to finance major rehabilitation, major maintenance, and upgrade costs for the sewer system. This fund may be established by an annual set-aside of up to 15 percent of the normal operations, maintenance, and bond payment costs, except that with respect to subsurface leachfield systems, the annual set-aside may equal up to 100 percent of these costs. The fund shall not exceed the estimated future major rehabilitation, major maintenance, or upgrade costs for the sewer system. Any dedicated fund shall be insured at least to the level provided by FDIC and withdrawals shall be made only for the purposes for which the fund was established. Any dedicated fund may be established and controlled in accord with section 2804 of this title or may be established by act of the legislative body of the municipality. Funds so established shall meet the requirements of subdivision 4756(a)(4) of this title.
(c) Where the municipal legislative body establishes a dedicated fund pursuant to this section, it shall first adopt a municipal ordinance authorizing and controlling the funds. The ordinance and any local policies governing the funds must conform to the requirements of this section.
(d) The charges, receipts, and revenue may also be used for stormwater management, control, and treatment; flood resiliency; floodplain restoration; and other similar measures. (Amended 1967, No. 181, § 3, eff. April 17, 1967; 1989, No. 45, § 6; 2003, No. 115 (Adj. Sess.), § 81, eff. Jan. 31, 2005; renumbered from 24 V.S.A. § 3616 by 2023, No. 143 (Adj. Sess.), § 13, eff. July 1, 2024.)