N.H. Rev. Stat. § 149-I:10 — NH Code / Title X / Chapter 149-I / Section 10
149-I:10 Sewer Funds.
Status: in_force

I. The funds received from the collection of sewer rentals shall be kept as a separate and distinct fund to be known as the sewer fund. Such fund shall be allowed to accumulate from year to year, shall not be commingled with town or city tax revenues, and shall not be deemed part of the municipality's general fund accumulated surplus. Such fund may be expended only for the purposes specified in RSA 149-I:8, or for the previous expansion or replacement of sewage lines or sewage treatment facilities. I-a. The funds received from the collection of sewer rate surcharge to customers outside of the municipal boundaries, as authorized pursuant to RSA 362:4, below the threshold for regulation by the public utilities commission, derived from inter-municipal agreements, by municipalities governed under RSA 49-D:3, I may upon approval of the legislative body of the municipality, be expended for the following purposes: (a) Pursuant to RSA 149-I:8. (b) For the acquisition, construction, payment of the interest on any debt incurred, management, maintenance, operation, and repair of sewer systems, or construction, enlargement, or improvement of such systems. (c) Capital reserve funds of the water or sewer system. (d) For the expansion or replacement of natural gas lines or systems, by a municipal gas system or gas provider regulated by the public utilities commission. (e) For the purposes set forth in RSA 162-G:4. (f) For the purposes set forth in RSA 162-K:6, III and RSA 162-K:8. II. Except when a capital reserve fund is established pursuant to paragraph III, all sewer funds shall be held in the custody of the municipal treasurer. Estimates of anticipated sewer rental revenues and anticipated expenditures from the sewer fund shall be submitted to the governing body as set forth in RSA 32:4 if applicable, and shall be included either as part of the municipal operating budget or as a separate warrant article submitted to the local legislative body for approval. In a town or district that has adopted the official ballot referendum form of meeting, any such separate warrant article shall include a default amount as provided in RSA 40:13, XI-a. If the municipality has a properly-established board of sewer commissioners, then notwithstanding RSA 41:29 or RSA 48:16, the treasurer shall pay out amounts from the sewer fund only upon order of the board of sewer commissioners. Expenditures shall be within amounts appropriated by the local legislative body. The sewer commission shall also remit to the municipality those costs incurred by the municipality in support of sewer operations, including but not limited to financial audit, facility insurance, treasurer compensation, and office support. III. At the option of the local governing body, or of the board of sewer commissioners if any, all or part of any surplus in the sewer fund may be placed in one or more capital reserve funds and held in the custody of the trustees of trust funds pursuant to RSA 35:7. If such a reserve fund is created, then the governing body, or board of sewer commissioners if any, may expend such funds pursuant to RSA 35:15 without prior approval or appropriation by the local legislative body, but all such expenditures shall be reported to the municipality pursuant to RSA 149-I:25. This section shall not be construed to prohibit the establishment of other capital reserve funds for any lawful purpose relating to municipal water systems. IV. The sewer fund may be used for the repayment of the costs of design, construction, and funding provided for by contract under RSA 149-I:4-a.