Section 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.