An Act To Revise the Charter of the Portland Water District
Maine Legislature, Session 124, LD 1176
Committee: Utilities and Energy
Sponsors: HASKELL, BARTLETT, BRYANT, MORRISON, RUSSELL, ALFOND

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Legislative Document 
No. 1176 
H.P.815 
House of Representatives, March 25, 2009 
An Act To Revise the Charter of the Portland Water District 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Representative HASKELL of Portland. 
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117· 7J?dC~{ 
MILLICENT M. MacFARLAND 
Clerk> 
Cosponsored by Senator BARTLETT of Cumberland and 
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Representatives: BRYANT of Windham, MORRISON of South Portland, RUSSELL of 
Portland, Senator: ALFOND of Cumberland. 
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Prinlt!d on recydd pnpr:r 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. P&SL i907, c. 433, §9, first~, as repealed and replaced by P&SL 1975, 
c. 84, is amended to read: 
Sec. 9. Authorized to borrow money to issue bonds and notes. The district, 
through its trustees and without vote of its inhabitants, is authorized to issue from time to 
. time bonds or notes- ofthe distriCt to pay for the costs of capital outla)' incurred by the 
district in cOIll1ection with accomplishing any of the purposes set forth in this Act, 
including to [mance any necessary expenses and liabilities .iricurred in acquiring 
properties,~ renovating properties,~ laying pipes, aqueducts, conduits, drains, interceptor 
lines, trunk sewers, force mains, and 
outfalls,~ construction of treatment plants, 
laboratories and other water and waste water wastewater and sewer faci1ities~ and .for 
making renewals, additions, extensions and improvements, to finance any of the regional 
_ costs as defined in section 12, to provide funds to assist any participating municipality 
with respect to its firiancing costs assessed pursuant to section 13, subsection B and to 
fund the establishment of a reasonable reserve for future payments of debt service,-and 
for interest on bonds or notes during the period of construction of items of capital outlay 
to be paid from the proceeds of such bonds or notes and for a period not exceeding one 
year thereafter. For the purpose of the preceding sentence, a reasonable reserve for future 
payment of debt services shall be deemed to mean a reserve, the amount of which shall 
not in the case of an issue of serial bonds or notes e)(ceed the largest amount of principal 
and interest payable in any year e)wept the last in which that issue of bonds or notes is 
outstanding and in the case of any other issue of bonds or notes .exceed the lesser of the 
largest amount of any mandatory sinking fund payment payable on account of the· 
particular issue of bonds or notes in any year e)wept the last in which that issue of bonds 
or notes is outstanding, or 4 % of the original principal amount of that issue plus in each 
case the largest amount of interest payable on that issue of bonds or notes in any such 
yeaF; 
Sec. 2. P&SL 1907, c. 433, §9, 2nd CiJl, as enacted by P&SL 1975, c. 84, is 
amended to read: 
SaHi The bonds or notes shall must be issued in lffi6h an amount or amounts as the district, 
acting through its trustees and without vote of its inhabitants, may determine .. SaHi The 
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bonds or notes may be issued to mature serially, inannual installments of principal, no 
one of which shall e)weed by more than 25% any earlier installment and which need not 
be equal, the first of which shall must be payable not later than 3 years from the date of 
lffi6h the bonds or notes and the last of which shall must be payable not later than 40 years. 
from said that date. SaHi The bonds ornotes may also be issued for a -term of years not 
exceeding 40 years or in a combination to mature serlally and for a term of years not 
exceeding 40 years, all as the trustees shall determine, and in the case of such term bonds, 
or combination of term bonds and serial bonds, the bonds in combination mature or are 
subj ect to an aIinuaf mandatory sinking fund redemption starting no later than 3 years 
after the bonds' date of issuance. Said The bonds may be callable with or without 
premium and shall must contain such terms and conditions, and be sold in such manner, 
at public or private sale, with or without provisions for prepayment in advance of 
maturity, at par, at a discount or at a premium, all as the trustees Shall determine. The 
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trustees may determine or may authorize the treasurer or a committee of 2 or more 
trustees to determine the selling price and rate or rates of interest to be paid on bonds or 
notes and, if specifically authorized by the trustees, the rate ,of interest may vary. 
Sec. 3. P&SL 1907, c. 433, §9, 3rd ~; as amended by P&SL 1977, c. 48, §2, is 
further amended to read: 
If the trustees vote to iss~e bonds or notes, the trustees may authorize the issuance, in the 
name of the district, of temp()[arynotes for a period not to exceed 5 years in anticipation 
of the money to be received from the sale of such bonds or notes but in no event later 
than one year after completion of construction of items of capital outlay to be paid from 
the proceeds of such temporary notes. The time within which suefl the temporary notes 
shall must be payable need not be included in determining the period for which bonds or 
notes may be issued.' 
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, Sec. 4. P&SL 1907, c. \433, §9, 4th'1'!, as enacted by P&SL 1977, c. 48, §3, is 
amended to read: 
For the purpose of paying preliminary expenses with respect to the investigation and 
planning for a waste '.vater wastewater and sewage system or the improvement of an 
existing system for the benefit of a participating municipality not served or to be served 
by an existing system of the district, including without limitation expenses related to or 
incurred in connection with engineering; design,' acquisition of rights of 'Nay rights of 
way, legal fees or financing" the district through its trustees, and without vote of its 
inhabitants is authorized to borrow ,by the issuance of temporary notes, including notes 
authorized under section 10, 2nd paragraph, for a period of not more than one year and to 
renew web the notes. Notes authorized under the authority of this paragraph shall must 
be paid from the proceeds of government grants, fund(~d by bonds or notes issued to 
, finance the particular system or improvement if and when the same bonds or notes have 
, been authorized or paid from sums apportioned as financing costs pursuant to section 13 
on .the municipality or ~nunicipalities for whose benefit the proposed system or 
, improvement was intended. Any borrowing under this paragraph ffiall must be paid or 
funded as l1:€retn provided not later than 5 years after the date of issuance of the original 
note or notes evidencin!!! such borrowin!!! in this Act. 
Sec. 5. P&SL 1907, c. 433, §9, 7th ~, as enacted by P&SL 1975, c. 84, IS 
amended to read: 
The district may refund from time to time in one or ill. separate series its bonds, notes or 
other evidences of indebtedness provided, hO'.vever, no ,refunding shall be earlier than 6 
ycars before the maturity or earliest date of redemption of the bonds or notes to be 
refunded and provided further that pending the PClyment of the refunded bonds or notes, 
the proceeds of the refunding bonds or notes shall be held in trust and invested only in 
securities issued or guaranteed by the United States of America which mature not later 
than the maturity or redemption date of the bonds or notes to be refunded. All water 
bonds shall must have inscribed upon their face "Portland Water District" and "Water 
Bond" and shall must be executed as the trustees 5hall detennine. All sewer bonds shall 
must have inscribed upon their face "Portland Water District" and "Sewer Bond" and 
shall must be executed as the trustees shall determine. All bonds issued in the exercise of 
2. 
the authorization of section 2, paragraph C, shall:. I1lust have inscribed upon their face 
"Portland Water District" and "Purificatiol1" and shall: must be executed as the trustees 
shall: determil1e. 
Sec. 6. P&SL 1907, c. 433, §9, last <;r, as enacted by P&SL 1975, c. 84, is 
amended to read: 
All ffi.t6l:l bonds, notes and evidences of indebtedness se issued by the district shall bEl. 
pursuant to· this section are legal obligations of the district, which is declared to be a 
quasi-municipal corporation within the meaning of the Maine Revised Statutes, Title .w 
30-A, section .wg 5701; and all provisions of .gaffi section shall be 5701 are applicable 
thereto. 
All bonds, notes and evidences of indebtedness issued by .gaffi the district 
pursuant to this Act shall be are legal inv.estments for savings banks in the State of Maine, 
. and shall be are exempt from Maine income tax .. 
Sec. 7. P&SL 1907, c. 433, §11, sub-§C, as enacted by P&SL 1975, c. 84, is 
amended to read: 
C. To provide each year a sum equal to not less than one nor more than 5% 1 % of 
the .entire indebtedness created or assumed by the district, other than indebtedness 
that matures serially or that has mandatory sinking fund payments, for the water 
system, \vhich. That sum shall: must be turned into a sinking fund and there kept to 
provide for the extinguishment of ffi.t6l:l the indebtedness, or, if serial bonds· er, notes 
or term bonds with mandatory sinking fund payments are issued for water purposes, 
to pay the principal of ffi.t6l:l the bonds er, notes or term bonds payable in ffi:l6h that 
year. 
The money set aside for the sinking fund shall: must be devoted to the 
retirement of the obligations of the district or invested in such securities as savings 
banks are aJlowed to hold. 
Sec. 8. P&SL 1907, c. 433, §12, sub-§B, c;[(4), as enacted by P&SL 1977, c. 48, 
§5, is amended to read: 
(4) Sinking fund payments; namely, a sum equal to not less than 2% nor morEl 
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than 5% of: 
(a) That portion of the fmal installment of principal of any issue of serial 
sewer bonds or notes or term sewer bonds or notes, with mandatOlY sinking 
fund payments, created or assumed by the district in comlection with .its· 
waste ';vater wastewater and sewage system, wfti.eh that for any such issue 
exceeds the average annual payment of principal paid or payable thereon in 
. each year ~ 
excluding the last installment of principal from the 
calculation of the average annual payment; and 
(b) The a:t;nount of principal of any term bonds issued without mandatory 
sinking fund payments assumed or issued by the district for said ","aste ';vater 
the wastewater and sewage system, which shaY must be turned into a 
separate sinking fund and there kept together with any earnings on .gaffi the 
sinking fund to provide for the extinguishment· of that portion of said 
indebtedness. 
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The money set aside for the sinking fund shalt must be devoted to the retirement 
of the obligations of the district resulting from its waste ,vat.er wastewater and 
sewage system, 'and meanwhile may be invested in such securities as savings 
banks in the State of Maine are now or hereafter allowed to hold. 
Sec. 9. P&SL 1907, c. 433, §12, sub-§D, as enacted byP&SLI97~, c..48, §5, is 
amended to read: 
D. The words "assess or assessment" as used in this Act shall mean, except when the 
context otherwise requires: The amount apportioned or allocated to a participating 
municipality wl=H€h that has been certified by the trustees as hereinbefore provided or 
with respect to which a participating municipality has otherwise been notified 
hereunder that such amount is to be paid to the district. 
If a surplus exists at the end of a calendar year, #-shall the surplus must be transferred 
to a sewer surplus account~ which at no time shall may not exceed 3%, unless 
otherwise approved by the trustees, of the net book value of the assets of the' district 
attributable to the 'llaste 'llater wastewater and sewage system. The trustees may add 
to the sinking fund so much of any excess over 5illil the 3% as they determine 
advisable; and any remainder 5hallmust be credited against sums otherwise to be 
assessed upon the participating municipalities on an equitable basis. 
Sec. 10. P&SL 1907, c. 433, ,§13, sub-§B, as amended by P&SL 1977, c. 48, 
§§6 and 7, is repealed and the following enacted in its place: 
B,' Apportionment of financing costs: 
(1) All financing costs of facilities used or to be used' by only one of the 
participating I?unicipalities must be apportioned to such municipality, 
(2) 
All financing costs of any facility designed' to be jointly used must be 
apportioned by the trustees between or among the participating municipalities for . 
whose benefit the facilities were designed in the ratio of the percentage of use 
capability of the facility attributed to each participating' municipality in the 
original design of the facility. If in the judgment of the trustees' the actual use of 
this facility by one or more of the participating municipalities will not occur 
within 24 1110nths of the actual use of the first participating municipality, 
financing costs must be apportioned under this paragraph to only those 
participating municipalities whose use or joint use of the facilities is expected to 
take place within the 24-111ont11 period. Except as otherwise provided in this 
paragraph, when a participating municipality makes first use ofa facility that had 
previously been used by one or more participating municipalities, that 
participating municipality must also be assessed for its fair share of the financing 
cost of the jointly used facility that had been previously assessed up to the time of 
the first use of the facility by the joining municipality. The additional share must 
be determined by the trustees on the same formula set forth in this paragraph. 
The trustees shall apportion the additional share and, in addition, if the trustees 
determine that it is appropriate and reasonable, an annual interest component at a 
rate to be determined by the trustees to the joinIng municipality over a period of 
years equal to the term for which the original bonded indebtedness was issued. 
The trustees shall 'make corresponding annual adjustments in the assessments of 
,the participating municipalities previously using the facility by crediting" the. 
amount of the additional share to the participating municipalities in proportion to 
their respective total payments to the district on account of the financing costs of 
the facility made by the participating municipalities up to the time of first use of 
the facility by the joining municipality. 
Any participating municipality has the right to prepay any portion of the original 
bonded indebtedness allocable to the participating municipality. 
Sec. 11. P&SL 1907, c. 433, §14, as amended py P&SL 1977, c. 48, §8, IS 
repealed and the following enacted in its place: 
Sec. 14. Water use and records; billing agency. The district at cost, shall 
. provide to any participating municipality upon written request, sufficient water use 
records to enable the municipality to de1ennine sewer rates and charges and for other 
municipal purpOses. 
A participating municipality that has established a schedule of rates, fees and charges for 
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the services furnished or to be furnished by its sewersystein any of which are computed 
at least in part according to the amount of water consumed may, by resolution of its 
legislative body, requestthe district to collect the user charges on its behalf. Upon receipt 
of a request, the district shall enter into a contract with the participating municipality' that 
provides for the following: 
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A. The date when collections under the contract period must begin, which may not 
be earlier than July 1st nor later than December 31 st next succeeding the year in 
which the request is made, and with respect to the manner in which the contract may 
. be amended and terminated; 
B. That the participating municipality shall during the period of the contract keep in 
force a schedule of rates,· fees and charges sufficient to produce each year funds 
required to pay the .costs apportioned or to. be apportioned to the participating, 
municipality for that year pursuant to sections 12 and 13; 
C. That to the extent the district does not maintain. such records in the ,ordinaIY 
course of its business, the particil?ating municipality shall provide the district with a 
list of the users of its sewer system responsible for payment of the rates, fees and 
charges and keep the same up to date; . 
D. That the district shall on behalf of the participating municipality collect from the 
users the amounts due from time to time according to the schedule of rates, fees and 
charges and keep the sums collected in a se'parate account; 
E. That the district· shall keep its accounts and records showing the sums collected, 
payments made from the collected sums arid charges remaining to be collected up to 
date at all times and shall' provide for an audit of the accounts and records at least 
annually;: 
F. That the district may deduct at such times as stated in the contract, which must be 
at least monthly, that portion of sums collected that represent the amouhts due to the 
district from the participating municipality pursuant to sections 12 and 13 and pay the 
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balance of the funds' to the participating ITlUnicipality, and that to the extent the 
portions retained. by the district fail to equal the portion of district costs then due from 
the participating municipality, the deficit must be paid to the district by the 
participating rilUnicipality; 
G. 
For a method of resolving disaweements concerning operations under the 
contract, which may be by arbitration, except that the obligations of each of the 
parties tb the contract with respect to the payment of money to the other must be 
unconditional and that neither party may withhold payment to the other of funds due 
-under the contract during the pendency of any dispute; and 
H. For such other related matters as determined appropriate by the parties to the 
contract. 
A participating municipality with respect to fixing' a schedule of rates, fees and other 
charges for the services furnished or to be furnished by or through its sewer system has_ 
such authority as may be granted by its charter, if any, by any private and special laws_ 
and by the Maine Revised Statutes, including, without limitation, Title 30-A, chapters 
and 213, to the extent applicable. Notwithstanding any provisiori of law to the 
contrary, a participating municipality may by vote of its legislative body authorize the 
exercise by the district on behalf of the participating municipality of any or all of the 
powers granted to the participating municipality to collect such rates and charges from 
the users of the sewer system of the participating municipality as provided in this Act, 
however, nothing in this section may be construed to penrut the transfer by a participating 
municipality to the district of the right to make or collect assessments authorized by Title 
30-A, chapter -161, subchapter 1, or any private' and special law authorizing a 
participating municipality to make or collect such assessments. 
In the event the user of the sewer system of the district or municipality fails within 
reasonable time to pay the statement of rates, fees or charges submitted by the district to 
the user, the district has the power to disconnect the water service of the user, 
notwithstanding any rule or statute to the contrary, as long as the action by the district is 
accomplished in accordance with the procedures set forth in applicable statutes and rules 
for the disconnection of utility services. 
Nothing -in the contract authorized under this section may affect in any way the 
unconditional obligation of the participating municipality to pay its share of the district's 
costs apportioned and certified as provided ill section 13. 
Sec. 12. lP&SL 1907, c. 433, §18, 2nd ~, as amended by P&SL 2001, c. 56, §2, 
is further amended to read: 
Trustees are elected for a term of5 years at elections as described in this paragraph. 
Trustees elected from the City of Portland are elected at the City of Portland's regular 
municipal elections in November. Trustees elected from the City of Portland, the City of 
South Portland, the Town of Cape El.izabeth, the City of Westbrook, the Town of Gorham 
andJ. the Town of'Scarborough, the Town of Windham and the Town of Raymond are 
elected at elections on the first Tuesday after the first Monday of November. The trustee 
elected from the Town of Cumberland and the Town of Falmouth is elected on a mutually 
coincident municipal election date in the Town of Cumberland and the Town of Falmouth 
in June, but, if there is· not a mutually coincident municipal election date, then on the 2nd 
3. 
Tuesday of June. The trustee elected from the TO'i'lfl of Raymond and the Town of 
'Nindham is elected on the date of municipal elections in the Town of 'Nindham in June. 
The Tovlfl of Raymond shall hold a special town meeting to elect the trustee on the same 
. day that the TOVIfl of Windham holds its election to elect the trustee. Costs for any 
trustee election held concurrently with a federal, state or municipal election are divided 
between the municipality and the district. When there is a division of costs, the district is 
responsible for the costs proportional to the total number of offices and referenda issues 
voted upon at the election. If an election for a trustee results in a tje vote, the other 
trustees shall select the person who becomes a trustee. 
Sec. 13. P&SL 1907, c. 433, §18, 6th <if, as amended by P&SL 1979, c. 26, §2, is 
further amended to read: 
. The municipal clerks shall present the returns of their respective municipalities to the 
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clerk of the district not later than 5 days after said the elections. The trustees shall at the 
annual first . regular business meeting after the election determine and declare the 
successful candidates of each area. 
Sec. 14. P&SL 1907, c. 433,§26 is enacted to read: 
. Sec. 26. 
Provision of administrative services to nonparticipating 
municipalities. The district is authorized to enter into contract's with nonparticipating 
municipalities; governmental entities or water and sewer utilities for the purposes of 
providing administrative services. Services may include but are not liririted to billing 
services, accounting services and other administrative services related to water and sewer 
operations. 
SUMMARY 
This bill revises the charter of the Portland Water District. 
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