N.Y. Public Authorities Law § 1115-i: Imposition and disposition of fees, rates, rents or charges

§ 1115-i. Imposition and disposition of 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 or sewerage

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

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 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 any

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 any agreement entered into pursuant to section eleven

hundred fifteen-h 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 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 any 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.

3. 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

agreements.

4. 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 other

interested persons, 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 city. 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 or 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 the city 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.

5. 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.

6. 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. Any

agreement for the supply of water services 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 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.

7. 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.

8. 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.

9. 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 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.

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

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

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 or sewerage services

to users outside the city.