§ 3348. Finances; water rates; application of revenue

(a) Notwithstanding the provisions of section 3311 of this title, the board of water commissioners of a consolidated water district shall establish rates for the water and services by meter service and all individuals, firms, and corporations, whether private, public, or municipal, shall pay to the treasurer of said district the rates and stand-by charges established by said board of water commissioners. In those districts where water is supplied by the consolidated water district to the consumer, rates shall be uniform within the district. A wholesale consolidated water district shall set a rate which is uniform to all member towns, and it may further establish a separate schedule for nonmember users. The board of water commissioners may also enter into a contract with member and nonmember municipalities for the supply of water over a period of years. All rates shall be so established as to provide revenue for the following purposes:

(1) to pay current expenses for operating and maintaining the water systems;

(2) to provide for the payment of interest on the indebtedness created by the district;

(3) to provide each year a sum equal to not less than two percent or more than five percent of the entire indebtedness created or assumed by the district to pay for the cost of the water system and improvements thereto, which sum shall be used to pay indebtedness maturing in said year or turned into a sinking fund and there kept to provide for the extinguishment of indebtedness of the district;

(4) to capitalize a sinking fund the proceeds of which shall be used to match federal funds;

(5) If any surplus remains at the end of the year, it may be turned into the sinking fund or used to pay the cost of improvements to the water system.

(b) The money set aside for the sinking fund and any increment thereon shall be devoted to the retirement of obligations of the district or for the purpose of matching federal funds, or invested in such securities as savings banks or fiduciaries or trustees are now or hereafter allowed to hold. The balance of the revenue, if any, required to meet said expenses shall be apportioned among and collected from member towns as herein provided.

(c) In the event a member town in the district, elects to establish a system by vote at an annual or special town meeting for fire protection, a consolidated water district may, at the expense of such town, purchase and install hydrants in such town and shall establish an annual fire protection stand-by charge for each hydrant, which charge shall be uniform throughout the district, and which shall be paid to the treasurer of the district by the member town in which such system is located. Any municipality purchasing water from a consolidated water district may, in turn, sell the water to any adjoining municipality and may set a charge therefor which takes into account, in addition to the rate paid to the consolidated water district, a sum to cover the expense of transporting the water to the purchasing municipality. (1964, No. 20 (Sp. Sess.), § 8, eff. March 10, 1964; amended 1967, No. 209, § 4, eff. April 17, 1967; 1997, No. 62, § 63, eff. June 26, 1997.)