New Jersey § 40a:31-10

§ 40a:31-10.

a. After the commencement of operation of water supply facilities, the local unit or

units may prescribe and, from time to time, alter rates or rentals to be charged to

users of water supply services. Rates or rentals being in the nature of use or service charges or annual rental

charges, shall be uniform and equitable for the same type and class of use or service

of the facilities, except as permitted by section 7 of P.L. 1994, c. 78 ( C.40A:31-10.1 ). Rates or rentals and types and classes of use and service may be based on any factors

which the governing body or bodies of that local unit or units shall deem proper and

equitable within the region served. b. Every local unit operating a municipal water supply facility shall establish a

rate structure that provides for uniform rates, rentals, or other charges for water

supply service and fire protection systems. No local unit may impose standby fees or charges for any fire protection system to

a residential customer served by a water service line of two inches or less in diameter. c. In fixing rates, rental and other charges for supplying water services, the local

unit or units shall establish a rate structure that allows, within the limits of any

lawful covenants made with bondholders, the local unit to: (1) Recover all costs of acquisition, construction or operation, including the costs

of raw materials, administration, real or personal property, maintenance, taxes, debt

service charges, fees and an amount equal to any operating budget deficit occurring

in the immediately preceding fiscal year; (2) Establish a surplus in an amount sufficient to provide for the reasonable anticipation

of any contingency that may affect the operation of the utility, and, at the discretion

of the local unit or units, allow for the transfer of moneys from the budget for the

water supply facilities to the local budget in accordance with section 5 of P.L.1983,

c. 111 ( C.40A:4-35.1 ). d. No local unit or units shall impose any rates or rentals in excess of the cost of water actually used for any

sprinkler system required to be installed in any residential health care facility

pursuant to the “Health Care Facilities Planning Act,” P.L.1971, c. 136 ( C. 26:2H-1 et seq. ) and regulations promulgated thereunder or in any rooming or boarding house pursuant

to the “Rooming and Boarding House Act of 1979,” P.L.1979, c. 496 ( C.55:13B-1 et al.) and regulations promulgated thereunder. e. Nothing in this section shall preclude a local unit operating a municipal water

supply facility from requiring separate dedicated service lines for fire protection. The local unit may require that fire service lines be metered. Nothing in this section shall alter the liability for maintenance and repair of

service lines which exists on the effective date of P.L.2003, c. 278 .