N.Y. Public Authorities Law § 1230-j: Imposition and disposition of fees, rates or charges

§ 1230-j. 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, the facilities and system 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, (a) 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, to the extent requested by

the city or any municipality in, or annually pursuant to, any agreement,

to pay to the city or any municipality, 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 or any

municipality issued for or allocable to the facilities of the system, as

the same shall become due and payable, and to maintain or fund reserves

therefor, (b) to pay to the city or any municipality, 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 system, (c) to pay to the city

or any municipality in accordance with any agreement entered into

pursuant to section twelve hundred thirty-h of this title an amount

sufficient for the purpose of paying liabilities issued for or allocable

to the system, as the same shall become due and payable, (d) to pay to

the city or 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, (e) to raise an amount sufficient for the

purpose of paying the costs of administering, managing, maintaining,

repairing and operating any system facility, (f) to meet any

requirements of any agreement, including requirements relating to the

establishment of reserves for renewal and replacement and for

uncollected rates, fees or other charges and covenants respecting rates,

(g) to pay all other reasonable and necessary expenses of the authority

and the water board in relation thereto, and (h) to pay or provide for

such other purposes or projects as the water board considers appropriate

and in the public interest.

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.

Subject to any agreements made by the water board in connection with the

issuance of any bonds of the authority, 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 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 system, 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, any users of the 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 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.

5. 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.

6. 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 or users 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 or municipality in the service area shall be

subject to the same fees, rates, rents or other charges under the same

conditions as other users of the system. All rights, powers, duties,

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

charges or rates for the supply of water, wastewater or storm water

services to users outside the city, shall be deemed to apply, as

appropriate, to the water board established pursuant to this title.

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, the city, 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 system facility.

8. 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.

9. The water board shall prepare and transmit to the city or

municipality in the service area of the water board, on or before the

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

owners within the city or 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 city or such 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 or wastewater or storm

water charges, if any". Such amounts, as and when collected by the city

or 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

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

unpaid taxes including unpaid delinquent water board charges, the amount

of unpaid water board charges to be paid to the water board shall be

prorated.

10. The public service commission shall have no jurisdiction over the

water board or the authority with respect to 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 city or the service area.