§ 3616. Duties; use of proceeds

Such sewage disposal commissioners shall have the supervision of such municipal sewage disposal department, and shall make and establish all needful rates for charges, rules, and regulations for its control and operation including the right to require any individual, person, or corporation to connect to such municipal system for the purposes of abating pollution of the waters of the State. Such commissioners may appoint or remove a superintendent at their pleasure. The charges and receipts of such department shall only be used and applied to pay the interest and principal of the sewage disposal bonds of such municipal corporation as well as the expense of maintenance and operation of the sewage disposal department or other expenses of the sewage system. These charges and receipts also may be used to develop a dedicated fund that may be created by the commissioners to finance major rehabilitation, major maintenance, and upgrade costs for the sewer system. This fund may be established by an annual set-aside of up to 15 percent of the normal operations, maintenance, and bond payment costs, except that with respect to subsurface leachfield systems, the annual set-aside may equal up to 100 percent of these costs. The fund shall not exceed the estimated future major rehabilitation, major maintenance, or upgrade costs for the sewer system. Any dedicated fund shall be insured at least to the level provided by FDIC and withdrawals shall be made only for the purposes for which the fund was established. Any such dedicated fund may be established and controlled in accord with section 2804 of this title or may be established by act of the legislative body of the municipality. Funds so established meet the requirements of subdivision 4756(a)(4) of this title. Where the municipal legislative body establishes such a fund, it shall first adopt a municipal ordinance authorizing and controlling such funds. Such ordinance and any local policies governing the funds must conform to the requirements of this section. (Amended 1967, No. 181, § 3, eff. April 17, 1967; 1989, No. 45, § 6; 2003, No. 115 (Adj. Sess.), § 81, eff. Jan. 31, 2005.)