Pennsylvania Act 1935-402 — MUNICIPALITIES, SEWER RENTALS PERMITTED

Act text

MUNICIPALITIES, SEWER RENTALS PERMITTED
                 Act of Jul. 18, 1935, P.L. 1286, No. 402             Cl. 53
                                  AN ACT

     Empowering counties, cities, boroughs, incorporated towns, and
        townships to charge and collect from owners of and water
        users in property served thereby, annual rentals, rates or
        charges for the use of certain sewers, sewerage systems and
        sewage treatment works, including charges for operation,
        inspection, maintenance, repair, depreciation, and the
        amortization of indebtedness and interest thereon; empowering
        counties, cities, boroughs, incorporated towns and townships
        to contract with authorities organized by cities of the
        second class, by cities of the second class A, by counties or
        by cities of the third class for sewer, sewerage and sewage
        treatment services; to grant, convey, lease, transfer,
        encumber, mortgage and pledge to such authorities, their
        sewers, sewerage systems and sewage treatment works; to
        assign and pledge to such authorities rentals, rates and
        charges charged and collected by them for the use thereof,
        and to assign to such authorities their power to charge and
        collect the same; and validating all such contracts, grants,
        conveyances, leases, transfers, assignments, encumbrances,
        mortgages and pledges heretofore made. (Title amended June
        22, 1970, P.L.406, No.133)
        Section 1.  Be it enacted, &c., That whenever any county,
     city, borough, incorporated town, or township, either singly or
     jointly with other municipalities or townships, (a) has, wholly
     or partially, constructed or completed or shall hereafter,
     wholly or partially, construct or complete any sewer, sewerage
     system or sewage treatment works, either wholly or partially at
     public expense, or (b) has acquired or shall hereafter acquire
     the same, either wholly or partially at public expense, or (c)
     has entered or shall hereafter enter into any contract with any
     authority established in accordance with law or with any private
     corporation for the design or construction of sewers, sewerage
     systems or sewage treatment works or for the furnishing of
     sewer, sewerage or sewage treatment services, for its or their
     benefit and the benefit of the inhabitants thereof, such county,
     city, borough, incorporated town, or township may provide by
     ordinance or resolution, enacted either before or after the
     acquisition or construction thereof, or the entry into such
     contract, for the imposition and collection of an annual rental,
     rate or charge for the use of such sewer, sewerage system, or
     sewage treatment works from the owners of, or the users of water
     in or on the property served or to be served by it, or from both
     the owner and the water user, whether such property is located
     within or without the corporate limits of such county, city,
     borough, town, or township.
        The annual rental, rate or charge so imposed shall be a lien
     on the properties served, and such liens may be filed in the
     office of the prothonotary and collected in the manner provided
     by law for the filing and collection of municipal claims.
        (1 reenacted and amended June 22, 1970, P.L.406, No.133)
        Section 2.  Any such annual rental, rate or charge may be,
     but shall not be limited to, such sum as may be sufficient to
     meet any or all of the following classes of expense: (a) the
     amount expended annually by the county, city, borough,
     incorporated town, or township in the operation, maintenance,
     repair, alteration, inspection, depreciation, or other expenses
     in relation to such sewer, sewerage system, or sewage treatment
     works; (b) such annual amount as may be necessary to provide for
     the amortization of any indebtedness incurred, or non-debt
     revenue bonds issued, by the county, city, borough, incorporated
     town, or township in the construction or acquisition of such
     sewer, sewerage system, or sewage treatment works, and interest
     thereon, in order that said improvements may become self-
     liquidating, or as may be sufficient to pay the amount agreed to
     be paid annually under the terms of any contract or lease with
     any authority or private corporation furnishing, or undertaking
     to design or construct facilities with which to furnish, sewer,
     sewerage or sewage treatment services to such county, city,
     borough, town, or township and its inhabitants; and (c)
     sufficient to establish a margin of safety of ten per centum.
     Any unused surplus from any preceding year shall be paid into
     the fund accruing from said rentals, rates or charges and,
     whenever the amount in said fund exceeds the said margin of
     safety of ten per centum, the excess shall be paid into the
     sinking fund. The amount required for sinking fund and interest
     shall be paid into the sinking fund, and the amount so paid,
     including any excess as above provided, shall not be used for
     any other purpose. The said annual rental or whatever rate or
     charge shall be decided upon by the county, city, borough,
     incorporated town, or township shall be apportioned equitably
     among the properties served by the said sewer, sewerage system,
     or sewage treatment works.
        (2 reenacted and amended June 22, 1970, P.L.406, No.133)
        Section 2.1.  It shall be lawful for any county, city,
     borough, incorporated town, or township to execute such
     agreements and contracts as it may deem necessary or advisable
     with an authority organized by a city of the second class, by a
     city of the second class A, by a county or by a city of the
     third class undertaking to provide, or to design or construct
     facilities with which to provide, sewer, sewerage or sewage
     treatment service to it and to its inhabitants and to such
     adjacent territory as it may be authorized to serve; also to
     grant, convey, lease, transfer, encumber, mortgage and pledge to
     such authority, its sewers, sewerage systems, sewage treatment
     works and appurtenant facilities, and any improvements,
     extensions and additions thereto; to assign and pledge to such
     authority rentals, rates and charges charged and collected by it
     for the use thereof, and to assign to such authority its power
     to charge and collect the same. No such agreement, contract,
     grant, conveyance, lease, transfer, assignment, encumbrance,
     mortgage or pledge shall be construed to prevent the affected
     county, city, borough, incorporated town, or township from
     thereafter using its tax revenues for the purpose of
     maintaining, repairing, altering, inspecting, improving, or
     extending such sewers, sewerage systems or sewage treatment
     works.
        Every such agreement, contract, grant, conveyance, lease,
     transfer, assignment, encumbrance, mortgage and pledge
     heretofore made to or with any authority organized by a city of
     the second class, by a city of the second class A, by a county
     or by a city of the third class is hereby ratified, confirmed
     and made valid, and the same shall be and remain lawful, valid
     and enforceable according to its terms.
        (2.1 amended June 22, 1970, P.L.406, No.133)
        Section 2.2.  The rights, powers and privileges granted to
     authorities by this act shall be in addition to and not in
     limitation of those granted by the Municipality Authorities Act
     of one thousand nine hundred forty-five, or any other law, and
     shall be construed to enlarge and not to reduce or limit the
     rights, powers and privileges of authorities.
        (2.2 added Apr. 18, 1949, P.L.499, No.112)
        Section 2.3.  The provisions of this act shall be severable
     and if any of the provisions thereof shall be held to be
     unconstitutional, such decision shall not affect the validity of
     any of the remaining provisions of this act. It is hereby
     declared as the legislative intent that this act would have been
     adopted had such unconstitutional provisions not been included
     therein.
        (2.3 added Apr. 18, 1949, P.L.499, No.112)
        Section 3.  All acts and parts of acts inconsistent with the
     provisions of this act are hereby repealed.
        Section 4.  This act shall become effective immediately upon
     its final enactment.