N.Y. Public Authorities Law § 1045-j: Imposition and disposition of sewer and water fees, rates, rents or charges

§ 1045-j. Imposition and disposition of sewer and water fees, rates,

rents or charges. 1. The water board shall establish, fix and revise,

from time to time, fees, rates, rents or other charges for the use of,

or services furnished, rendered or made available by, the sewerage

system or water system, or both, as the case may be, owned by the water

board pursuant to this title in such amount at least sufficient at all

times so as to provide funds in an amount sufficient together with other

revenues available to the board, if any, (i) to pay to the authority, in

accordance with any agreement with the authority, an amount sufficient

for the purpose of paying the principal of and the interest on the

outstanding notes or bonds of the authority as the same shall become due

and payable and maintaining or funding a capital or debt service reserve

fund therefor and, to the extent requested by the city in, or annually

pursuant to, the agreement to pay to the city, in accordance with the

agreement, an amount sufficient for the purpose of paying the principal

of and interest on general obligation bonds thereof issued for or

allocable to the water system or sewerage system or both, as the case

may be, as the same shall become due and payable, and to maintain or

fund reserves therefor, (ii) to pay to the city, in accordance with the

agreement, an amount sufficient for the purpose of paying the costs of

administering, maintaining, repairing and operating and the cost of

constructing capital improvements to the water system or sewerage system

or both, as the case may be, (iii) to pay to the city in accordance with

the agreement entered into pursuant to section one thousand forty-five-i

of this title an amount sufficient for the purpose of paying liabilities

issued for or allocable to the water system or sewerage system or both,

as the case may be, as the same shall become due and payable, (iv) to

meet any requirements of any agreement including requirements relating

to the establishment of reserves for renewal and replacement and for

uncollected charges and covenants respecting rates, (v) to pay all other

reasonable and necessary expenses of the authority and the water board

in relation thereto, and (vi) to the extent requested by the city in or

pursuant to the agreement, to pay or provide for such other purposes or

projects as such city considers appropriate and in the public interest.

Any surplus of funds remaining in the water board after such payments

have been made shall be returned to the city for deposit in the general

fund.

2. There is hereby established in the custody of the water board a

special fund to be known as the local water fund. Such fund shall

consist of the revenues derived from the fees, rates, rents and service

charges established, charged and collected pursuant to this title and

any other income earned or moneys received by the water board. Revenues

in the local water fund shall be kept separate and shall not be

commingled with any other moneys in the custody of the water board. All

moneys, properties and assets acquired by the water board, whether as

revenues or otherwise, shall be held by it in trust for the purposes of

carrying out its powers and duties, and shall be used and reused in

accordance with the purposes and provisions of this article.

The water board shall deposit promptly, to the credit of the local

water fund, revenues collected under this article in a bank, banking

house or trust company as may be designated in or pursuant to the

agreement.

3. No such fee, rate, rent or other charge shall be established, fixed

or revised unless and until the water board has held a public hearing at

which the users of the water system or sewerage system, or both, as the

case may be, the owners of property served or to be served and others

interested, have had an opportunity to be heard concerning the same.

Notice of such public hearing shall be published by the water board at

least twenty days before the date set therefor, in at least one

newspaper of general circulation in each of the areas served by the

water system or sewerage system, as the case may be. Such notice shall

set forth the date, time and place of such hearing and shall include a

brief description of the matters to be considered at such hearing. A

copy of the notice shall be filed in the office of the clerk of the city

and shall be available for inspection by the public. At all such

hearings, any users of the water system, sewerage system, or both, as

the case may be, owners of property served or to be served and any other

interested persons shall have an opportunity to be heard concerning the

matters under consideration. Any decision of the water board on matters

considered at such public hearing shall be in writing and be made

available in the office of the water board for public inspection during

regular office hours. Such decision shall be published in at least one

newspaper of general circulation in each of the areas served by the

water system or sewerage system, as the case may be within thirty days

after such decision is made. The fees, rates, rents or other charges so

established for any class of users of property served shall be extended

to cover any additional premises thereafter served which are within the

same class, without the necessity of a hearing thereon.

4. The fees, rates, rents or other charges established, fixed and

revised from time to time by the water board shall be collected by the

water board at such times and in such manner as may be determined by the

rules and regulations adopted by the water board consistent with the

provisions of this title.

4-a. (a) The water board may enter into agreements with one or more

financing agencies or card issuers to provide for the acceptance by the

water board of credit cards as a means of payment of fees, rates, rent

or other charges owed by a person to the water board. Any such agreement

shall govern the terms and conditions upon which a credit card proffered

as a means of payment of a fee, rate, rent or other charge shall be

accepted or declined and the manner in and conditions upon which the

financing agency or card issuer shall pay to the water board the amount

of fees, rates, rent or other charges paid by means of a credit card

pursuant to such agreement. Any such agreement may provide for the

payment by the water board to such financing agency or card issuer of

fees for the services provided by such financing agency or card issuer

pursuant to such agreement, which fees may consist of a discount

deducted from or payable in respect to the amount of each such fee,

rate, rent or other charge or otherwise as the agreement may provide.

(b) If the water board has entered into an agreement pursuant to

paragraph (a) of this subdivision, it may accept credit cards as a means

of payment of fees, rates, rent or other charges, as provided in any

agreement entered into pursuant to paragraph (a) of this subdivision and

may pay such fees as are specified in such agreement to such financing

agency or card issuer in consideration of the services rendered by such

financing agency or card issuer thereunder; provided, however, that the

water board may require any person offering a credit card as a means of

payment of such fee, rate, rent or other charge to pay to the water

board a reasonable administrative service fee not to exceed the costs

incurred by the water board in connection with such credit card

transaction, which costs shall include any fee payable by the water

board to such financing agency or card issuer.

(c) The water board may promulgate any rules or regulations necessary

to carry out the provisions of this subdivision.

(d) For purposes of this subdivision, the terms "card issuer", "credit

card", "financing agency" and "person" shall have the same meaning as

provided in subdivision (a) of section five of the general municipal

law.

5. Such fees, rates, rents or other charges, if not paid when due,

shall constitute a lien upon the premises served and a charge against

the owners thereof, which lien and charge shall bear interest at the

same rate as would unpaid taxes of the city. Such lien shall take

precedence over all other liens or encumbrances, except taxes, and may

be foreclosed against the lot or building served in the same manner as a

lien for such taxes. The amount which remains due and unpaid for sixty

days may, with interest thereon at the same rate as unpaid city taxes

and with reasonable attorneys' fees, be recovered by the water board in

a civil action in the name of the water board against such owners. The

city, and any state agency shall be subject to the same fees, rates,

rents or other charges under the same conditions as other users of such

water system or sewerage system, or both, as the case may be. Tax exempt

organizations shall be charged according to the provisions of chapter

six hundred ninety-six of the laws of eighteen hundred eighty-seven, as

amended by chapters eight hundred ninety-three and eight hundred

ninety-four of the laws of nineteen hundred eighty and by provisions

which may by law extend the provisions of such chapters from time to

time. Any agreement for the supply of water or sewerage services between

the city or an agency thereof and any other municipality or water supply

system, or any administrative determination by a state agency, or any

other arrangement in this regard, in effect at the time the water board

shall be established, shall remain in full force and effect and be

binding upon the water board as if it were a party to such agreement,

determination or other arrangement. All rights, powers, duties,

obligations and functions provided by law with respect to the fixing of

charges or rates for the supply of water or sewerage services to users

outside the city, including but not limited to those set forth in

article one of title K of chapter fifty-one of the administrative code

of the city of New York and article eight of the environmental

conservation law, shall be deemed to apply, as appropriate, to the water

board established pursuant to this title. In addition to any other

lawful enforcement methods and pursuant to rules and regulations of the

water board promulgated pursuant to this title, the payment of fees,

rates, rents or other charges for water service or sewerage service to

any premises may be enforced by discontinuing the water service or

sewerage service to such premises provided that such discontinuance or

disconnection of any supply of water or the provision of sewerage

service, or both, as the case may be, shall not be carried out except in

the manner and upon the notice as is required of a water-works

corporation pursuant to subdivisions three-a, three-b and three-c of

section eighty-nine-b and section one hundred sixteen of the public

service law.

6. The water board shall pay to the authority such amounts at such

times and in such manner as may be provided in the agreement by and

among the authority, the water board and the city consistent with the

priorities set forth in such agreement. There is hereby created a lien,

by this title made a statutory lien within the meaning of the uniform

commercial code and any other state or federal law, upon the gross

revenues of the water board, in favor of the payment of all amounts due

pursuant to such agreement and in the order and priority set forth

therein and which lien shall be a first lien upon such gross revenues.

The gross revenues so subject to such statutory lien shall be and remain

subject to such statutory lien until the payment in full of each such

item in accordance with such priority. Said statutory lien shall not be

construed to give any holder or owner of any bond of the authority power

to compel the sale of any water system or sewerage system, as the case

may be.

7. If there be any default by the water board in the making of the

payments to the authority required under this section, as a result of

the failure by the water board to impose sufficient fees, rates, rents

or other charges, the authority may petition for the appointment by any

court having jurisdiction in any proper action of a receiver to

administer on behalf of the water board, under the direction of said

court, the affairs of the water board in order to achieve system

revenues at least sufficient to make such payments; and by and with the

approval of said court, to establish, fix and revise, from time to time,

fees, rates, rents or other charges at least sufficient therefor in

conformity with this title, and the resolution or trust indenture of the

authority providing for the issuance of its bonds and in accordance with

such orders as the court shall make.

8. The water board shall prepare and transmit to the city on or before

the first day of December in each year a list of those persons or

property owners within such city who are in arrears in the payment of

fees, rates, rents or other charges for a period of sixty days or more

after the last day fixed for payment thereof without penalty. The list

shall contain a brief description of the properties for which the

services were provided, the names of the persons liable to pay for the

same and the amounts chargeable to each, including penalties and

interest computed to the next succeeding December thirty-first. The city

shall levy such sums against the properties liable and shall state the

amount thereof in a separate column in the annual tax rolls of such city

under the name of "delinquent water charges" or "delinquent sewerage

charges" or "delinquent water and sewerage charges" as may be

appropriate and as may be directed by the water board. Such amounts, as

and when collected by the commissioner of finance of the city, shall be

paid over to the water board. All of the provisions of the tax laws of

the state covering the enforcement and collection of unpaid taxes of the

city shall apply to the collection of such unpaid fees, rates, rents or

other charges.

9. Neither the public service commission, nor any city or state

agency, shall have any jurisdiction over the water board or authority or

any power over the regulation of the fees, rates, rents or other charges

established, fixed or revised by the water board except with respect to

the supply of water or sewerage services to users outside the city as

provided in article one of title K of chapter fifty-one of the

administrative code of the city of New York.

9-a. The water board shall hold public hearings, in each borough of

the city of New York, prior to promulgating or fixing annual water and

sewer rates for such city. Notice of such public hearing shall be

conspicuously published in a newspaper of general circulation, within

each borough, at least one week prior to the hearing.