N.Y. Public Authorities Law § 1226-i: Imposition and disposition of fees, rates or charges

§ 1226-i. Imposition and disposition of fees, rates or charges. 1.

The water board shall establish, fix and revise, from time to time,

fees, rates or other charges for the use of, or services furnished,

rendered or made available by, all projects and water facilities owned,

leased or utilized by the water board pursuant to this title in an

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, if any, or any other fund

determined necessary by the authority, and, if applicable (ii) to pay to

any municipality, in accordance with this title or any agreement entered

into pursuant to this title, an amount sufficient for the purpose of

paying any payment in lieu of taxes as the same shall become due and

payable, (iii) to raise an amount sufficient for the purpose of paying

the costs of administering, maintaining, repairing and operating any

water facility, (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

pay or provide for such other purposes or projects as the water board

considers appropriate and in the public interest.

2. No fee, rate 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 facility, 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 not less than ten nor more than twenty days before the

date set therefor in a newspaper or newspapers having general

circulation in the service area, as shall be designated by the water

board. 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 secretary of the water board and shall be available for

inspection by the public. At all such hearings, all users of the water

facilities, 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 secretary of the water board for public

inspection. Such decision shall be published in a newspaper or

newspapers having a general circulation in the service area as shall be

designated by the water board not later than thirty days after such

decision is made. The fees, rates 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. The water board shall exempt

the facility currently operated by the Utica zoological society and

located on Steele Hill road, Utica, commonly known as the Utica zoo,

from the payment of fees, rates or charges for water. The water board

may also determine to exempt the municipalities within the service area

from the payment of all or any part of fees, rates or other charges as

the water board deems appropriate; provided, however, that (i) any such

exemption shall be established by and set forth in a resolution of the

governing body of the water board, (ii) such resolution shall be mailed

or delivered to all municipalities within or partly within the service

area prior to the date on which any such exemption shall take effect,

and (iii) any such exemption shall apply equally and uniformly to all

such municipalities.

3. The fees, rates 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. Such fees, rates 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 county. 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 county 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. 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, 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 waterworks 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.

5. 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, the board of water supply, and any

municipality 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 facility.

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

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

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

7. The water board shall prepare and transmit to each town in the

service area on or before the first day of September in each year, to

each village in the service area on or before the first day of February

in each year and to the city on or before the first day of February in

each year a list of those persons or property owners within such

municipality who are in arrears in the payment of fees, rates, 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 applicable penalties and interest. The

municipality shall levy or cause to be levied such sums against the

properties liable and shall state the amount thereof in a separate

column in the annual tax rolls of such municipality under the name of

"delinquent water charges". Such amounts, as and when collected by such

municipality, 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 an applicable municipality shall apply to

the collection of such unpaid fees, rates or other charges. In the event

that the enforcement of unpaid taxes, including unpaid delinquent water

charges, does not yield moneys sufficient to pay in full all unpaid

taxes including unpaid delinquent water charges, the amount of unpaid

water charges to be paid to the water board shall be prorated.

8. Neither the public service commission, the department of

environmental conservation nor any municipal or state agency, shall have

any jurisdiction over the water board or the authority or any power over

the regulation of the fees, rates or other charges established, fixed or

revised by the water board except as provided by law with respect to the

supply of water to users outside the service area. The decision dated

September fourteen, nineteen hundred thirty-seven of the water power and

control commission, predecessor to the department of environmental

conservation, with respect to the supply, distribution of and payment

for water by and to the city shall be of no force and effect subsequent

to the date on which the water board shall supply, distribute and sell

water in the service area pursuant to this title.