Vermont § 3348 - Finances; water rates; application of revenue

§ 3348. Finances; water rates; application of revenue

• (a)(1) 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
  that district the rates and stand-by charges established by the board of water commissioners. (2) In those districts in which 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 that 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. (3) All rates shall be established so as to provide revenue for the following purposes: (A) to pay current expenses for operating and maintaining the water systems; (B) to provide for the payment of interest on the indebtedness created by the district; (C) 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 to the water system, which sum shall be used
  to pay indebtedness maturing in that year or turned into a sinking fund and there
  kept to provide for the extinguishment of indebtedness of the district; (D) to capitalize a sinking fund, the proceeds of which shall be used to match federal
  funds. (4) 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.