N.Y. Public Authorities Law § 1048-j: Imposition and disposition of water fees, rates, rents or charges

§ 1048-j. Imposition and disposition of 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 water system 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 of the

city issued for or allocable to the water system 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, (iii) to pay to the city in

accordance with the agreements entered into pursuant to sections one

thousand forty-eight-h and one thousand forty-eight-i of this title an

amount sufficient for the purpose of paying liabilities issued for or

allocable to the water system 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 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, 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 the areas served by the

water system. 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, 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 the areas served by the water system 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.

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. Any agreement for the supply of water 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 services to users outside the

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

any premises may be enforced by discontinuing the water service to such

premises provided that such discontinuance or disconnection of any

supply of water 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.

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" as may be appropriate and

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

collected by the commissioner of administration and 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 as provided by

law with respect to the supply of water services to users outside the

city.