Section 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.