2023 -- H 5451

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LC000431

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO THE CITY OF WARWICK -- SEWER AUTHORITY

     

     Introduced By: Representative Joseph J. Solomon

     Date Introduced: February 08, 2023

     Referred To: House Municipal Government & Housing

     It is enacted by the General Assembly as follows:

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     SECTION 1. Unless otherwise amended by this act, the terms, conditions, provisions and

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definitions of Chapter 254 of the Public Laws of 1962, as amended by Chapters 60 and 61 of the

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Public Laws of 2016, and Chapters 290 and 307 of the Public Laws of 2019 are hereby incorporated

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by reference and shall remain in full force and effect.

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     SECTION 2. Section 9 of Chapter 254 of the Public Laws of 1962 entitled "An Act to

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Create a Sewer Authority for the City of Warwick and to Authorize said City to Plan, Construct,

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Finance, Operate and Maintain Sewage Works", as amended, by Chapters 60 and 61 of the Public

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Laws of 2016 and Chapters 290 and 307 of the Public Laws of 2019 is hereby further amended to

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read as follows:

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     Section 9. Apportionment of costs; sewer assessments and charges; enforcement of charges

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and assessments. -- The authority, with the advice and consent of the mayor, shall prescribe just

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and equitable sewer assessment rates on account of the construction costs and the cost of principal

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and interest for any bonds or notes issued for sewage works, to be levied against owners of parcels

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abutting on that portion of any highway in which a common sewer is laid under this act and also

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rates of user charges on account of operation and maintenance costs and renewal and replacement

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funding and the cost of principal and interest for any bonds or notes issued for sewage works, to be

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levied against owners of parcels that are connected to a common sewer or in accordance with

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section 17(b).

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     The assessments herein referred shall be paid by every parcel owner whose parcel abuts on

 

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that portion of any highway in which a common sewer is laid, under this act, in a manner prescribed

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by the authority, with the approval of the mayor and the finance director. The annual user charges

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herein referred shall be paid by every parcel owner whose parcel is connected to a common sewer,

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or in accordance with section 17(b), in a manner prescribed by the authority, with the approval of

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the mayor and the finance director.

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     Notwithstanding the foregoing, the authority may defer sewer assessments against parcels

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that are undeveloped or not developed to the extent permissible by city zoning ordinances;

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provided, that the parcels remain subject to assessment upon the development or redevelopment of

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the parcels in accordance with the authority's rules and regulations. The authority may defer sewer

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assessments against any parcels, if the owner of a parcel has installed a new OWTS within twenty

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(20) years of sewer service initially becoming operational, provided that the parcel shall remain

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subject to assessment and shall begin paying the assessment twenty (20) years from the date of the

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installation of the OWTS or upon connection to the sewer system, whichever occurs first.

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     The sewer assessments shall be determined by a method(s) adopted by the sewer authority

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that assesses charges for use of the sewers and the sewer systems in an amount that bears a

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reasonable relation to the cost of construction to the city and authority of the service rendered to

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the users, which method(s) may include, but is not limited to, the frontage along the highway of

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each parcel of land abutting on a common sewer, the area of such land within a fixed depth from

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the highway, or other alternative methods. The sewer authority, with the advice and consent of the

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mayor, may, from time to time, redetermine the rates fixed for sewer assessments, if construction

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costs warrant, and may redetermine rates for user charges if costs so warrant.

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     The sewer assessments herein referred to shall be paid by every parcel owner whose parcel

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is abutting on that portion of any highway in which a common sewer is laid under this act or is

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connected to the city's sewage works.

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     Sewer assessments levied hereunder shall be paid in as many as thirty (30) annual

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installments in accordance with the terms of the loan secured for sewer construction. In the case of

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installment payments, at a simple interest at a rate not to exceed a maximum rate of one and twenty-

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five hundredths percent (1.25%) above the average interest rate the authority is charged on the loan

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used to fund the construction of the sewers shall be charged annually on the unpaid balance of the

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total sewer assessment. The city of Warwick may charge the owners of lands using the sewage

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works monetary interest charges in excess of those interest charges actually paid by the city for the

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funds it has borrowed for sewage works' purposes, up to a maximum of one-half of one percent

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(.5%) of the interest charges paid by the city. The excess interest charges shall only be used for

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administrative purposes. These annual installment payments may be paid on a quarterly basis.

 

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     Sewer assessments shall be levied at a uniform rate based upon the final cost of

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constructing all sewers, sewer service connections, and other sewage works belonging to the city.

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Sewer assessment revenues shall be used for the payment of the principal and interest costs for any

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bonds or notes issued for sewage works.

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     User charges shall be levied upon every parcel owner or institution whose parcel is

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connected to the city's sewage system. The charge shall be computed as annual rates based upon

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water consumption or other factors deemed equitable by the sewer authority. The user charge shall

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be set at a level sufficient to support operation and maintenance costs of the sewer system and the

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wastewater treatment plant, the renewal and replacement fund, and the principal and interest for

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any bonds or notes issued for sewage works. The revenues to be raised by user charges will be

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reduced by revenues generated by sewer assessments.

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     The authority shall annually certify to the finance director and to the mayor all the charges

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and sewer assessments made by it under the authority of this act. Each charge or assessment made

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by the authority pursuant to this act shall be a lien upon the parcels, lands, buildings, and

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improvements upon which it is made in the same way and manner as taxes assessed on real estate,

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but the liens shall not expire until the charge or assessment, with all interest, costs, and penalties

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thereon, is paid in full, and, if the charge or assessment is not paid as required, it shall be collected

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in the same manner that taxes assessed on real estate are by law collected. The finance director,

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after receiving a list of charges or assessments under this act, shall forthwith, at the expense of the

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authority, send to each person assessed or charged notice of the amount of the assessment or charge.

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The notice shall substantially identify the person assessed, state the amount of the assessment or

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charge, and refer to the remedy available under section 19 of this act. The notice shall be mailed

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postpaid and directed to the last known address of the person assessed. If there are persons whose

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addresses are unknown, a similar notice covering the assessments against the persons shall be

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published in a newspaper of general circulation in the city and the published notice may be a single

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collective notice for all the persons. No irregularity in the notice required by this section shall

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excuse the nonpayment of the assessment or charge or affect its validity or any proceedings for the

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collection thereof as long as there is substantial compliance with the provision hereof. No

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deficiency in the notice to the person assessed shall excuse the nonpayment by others of the

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assessment or charges assessed against them or affect the validity thereof or any proceedings for

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the collection thereof. The finance director shall without further warrant collect the charges and

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assessments in the same manner as the regular taxes of the city may be payable. Interest at the rate

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per annum fixed for nonpayment of city taxes shall be charged and collected upon all overdue

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charges and assessments from the date they become payable until paid; provided, however, that the

 

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total overdue charge for non-payment of installment of sewer assessments shall be applied to past

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due installments and not the total assessment; and provided, further, that there shall be no penalty

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on installment assessments deferred by reason of income subject to rules and regulations that the

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Warwick city council may prescribe by ordinance.

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     The authority with the advice and consent of the mayor may at any time modify in whole

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or in part any charge or assessment to the extent the authority determines the charge or assessment

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to have been improperly imposed.

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     SECTION 3. This act shall take effect upon passage and the sewer authority shall adopt

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rules and regulations within one year thereafter to implement the provisions of this act.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO THE CITY OF WARWICK -- SEWER AUTHORITY

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     This act would amend the authority of the Warwick Sewer Authority to charge excess

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interest at a rate not to exceed a current maximum rate up to one and twenty-five hundredths percent

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(1.25%) by reducing the maximum rate to one-half of one percent (.5%) with the amount collected

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only for use for administrative purposes.

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     This act would take effect upon passage and require the Warwick Sewer Authority to adopt

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rules and regulations within one year thereafter to implement the provisions of this act.

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