2023 New York Laws › PBA - Public Authorities › Article 5 - Public Utility Authorities › Title 2-A - New York City Municipal Water Finance Authority › 1045-J - Imposition and Disposition of Sewer and Water Fees, Rates, Rents or Charges.

§  1045-j.  Imposition and disposition of sewer and 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  sewerage
system  or water 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 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  thereof  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 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 or sewerage system
or both, as the case may be, (iii) to pay to the city in accordance with
the agreement entered into pursuant to section one thousand forty-five-i
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  case  may be, 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 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.
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 or sewerage system, or both, as the
case may be, 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 each of  the  areas  served  by  the
water  system or sewerage system, as the case may be.  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, 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  each of the areas served by the
water system or sewerage system, as the case may be 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.
4-a.  (a)  The  water board may enter into agreements with one or more
financing agencies or card issuers to provide for the acceptance by  the
water  board  of credit cards as a means of payment of fees, rates, rent
or other charges owed by a person to the water board. Any such agreement
shall govern the terms and conditions upon which a credit card proffered
as a means of payment of a fee, rate, rent  or  other  charge  shall  be
accepted  or  declined  and  the manner in and conditions upon which the
financing agency or card issuer shall pay to the water board the  amount
of  fees,  rates,  rent  or other charges paid by means of a credit card
pursuant to such agreement. Any  such  agreement  may  provide  for  the
payment  by  the  water board to such financing agency or card issuer of
fees for the services provided by such financing agency or  card  issuer
pursuant  to  such  agreement,  which  fees  may  consist  of a discount
deducted from or payable in respect to the  amount  of  each  such  fee,
rate, rent or other charge or otherwise as the agreement may provide.
(b)  If  the  water  board  has  entered into an agreement pursuant to
paragraph (a) of this subdivision, it may accept credit cards as a means
of payment of fees, rates, rent or other charges,  as  provided  in  any
agreement entered into pursuant to paragraph (a) of this subdivision and
may  pay  such fees as are specified in such agreement to such financing
agency or card issuer in consideration of the services rendered by  such
financing  agency or card issuer thereunder; provided, however, that the
water board may require any person offering a credit card as a means  of
payment  of  such  fee,  rate,  rent or other charge to pay to the water
board a reasonable administrative service fee not to  exceed  the  costs
incurred  by  the  water  board  in  connection  with  such  credit card
transaction, which costs shall include any  fee  payable  by  the  water
board to such financing agency or card issuer.
(c)  The water board may promulgate any rules or regulations necessary
to carry out the provisions of this subdivision.
(d) For purposes of this subdivision, the terms "card issuer", "credit
card", "financing agency" and "person" shall have the  same  meaning  as

provided  in  subdivision  (a)  of section five of the general municipal
law.
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 or sewerage system, or both, as the case may be. Tax exempt
organizations shall be charged according to the  provisions  of  chapter
six  hundred ninety-six of the laws of eighteen hundred eighty-seven, as
amended  by  chapters  eight  hundred  ninety-three  and  eight  hundred
ninety-four  of  the  laws  of nineteen hundred eighty and by provisions
which may by law extend the provisions of such  chapters  from  time  to
time. Any agreement for the supply of water 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
article  one  of title K of chapter fifty-one of the administrative code
of the  city  of  New  York  and  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 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.
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 or sewerage system, as  the  case
may be.
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"  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 commissioner of 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 with respect to
the supply of water or sewerage services to users outside  the  city  as
provided  in  article  one  of  title  K  of  chapter  fifty-one  of the
administrative code of the city of New York.
9-a. The water board shall hold public hearings, in  each  borough  of
the  city  of New York, prior to promulgating or fixing annual water and
sewer rates for such city.  Notice  of  such  public  hearing  shall  be
conspicuously  published  in  a newspaper of general circulation, within
each borough, at least one week prior to the hearing.