[HISTORY: Adopted by the Board of Commissioners of the Township of Nutley 1-16-2024 by Ord. No. 3536. Amendments noted where applicable.]
There is hereby established a combined water and sewer utility to be called the "Township of Nutley Water and Sewer Utility" in accordance with N.J.S.A. 40:62-47 et seq.[1] and 40A:26A-1 et seq., and all other enabling legislation, regulations and codes. The Township of Nutley Water and Sewer Utility shall be responsible for the operation, functioning and maintenance of the Township water and sewerage systems; shall be empowered to make such improvements as may be necessary to effectuate the foregoing and have the authority to establish, charge and collect fees for connections, usage and services for direct or indirect use of the water and sewerage systems; and shall have all such other powers and duties as may be specified and prescribed.
[1]
Editor's Note: N.J.S.A. 40:62-47 was repealed by P.L. 1989, c. 109, § 1. See now N.J.S.A. 40A:31-1 et seq.
Except as otherwise provided in this section, the Township of Nutley Water and Sewer Utility shall operate as a division within the Department of Public Works. The Director of Public Works shall select a Superintendent for the Water and Sewer Utility Division, who shall serve at the pleasure of the Director. The Superintendent of the Water and Sewer Utility Division shall report to the Director of Public Works and shall receive such compensation as established by the Board of Commissioners. Additional Water and Sewer Utility Division staff may be hired in accordance with normal Township procedures and in accordance with the Department of Public Works budget. The Water and Sewer Utility Division may retain consulting professionals as deemed necessary by the Director. The organization of the Water and Sewer Utility Division and its function shall be in accordance with the organizational chart, which shall be filed with the Township Clerk, and shall be updated by resolution of the Director of Public Works as required.
All billing and collection of water and sewer rents, rates and charges on behalf of the Township of Nutley Water and Sewer Utility shall be performed by the Department of Revenue and Finance as authorized by its Director. Billing and collection operations shall be overseen by the Tax Collector in coordination with the Chief Financial Officer. The Chief Financial Officer shall provide reports on a regular basis, but not less frequently than once per fiscal quarter, containing all collections, revenues, expenses and balances of the Township of Nutley Water and Sewer Utility. All such reports shall be circulated to the Director of the Department of Public Works, the Director of the Department of Revenue and Finance, and the Superintendent of the Sewer Utility Division and the Board of Commissioners.
Rates for the connections, user fees and services are set by separate ordinances of the Township, which are herein incorporated by reference. Such rates, including but not limited to connections, meters, and usage, may be subject to periodic review and change as recommended by the Director and Superintendent of the Water and Sewer Utility Division.
The anticipated revenues from the operation of the Township of Nutley Water and Sewer Utility and the appropriations therefor shall be set forth in a separate section of the Township budget and maintained in the Water and Sewer Utility Fund as established by ordinance. Dedicated revenues shall not be stated in the Township budget in an amount which is in excess of the appropriation therein for the purposes to which the same are applicable, or in excess of the amount actually realized in cash from the same source during the preceding fiscal year, unless the Director of the Division of Local Government Services shall, upon application to the Board of Commissioners, determine that the facts clearly warrant the expectation that such excess amount will actually be realized in cash during the fiscal year and shall certify such determination in writing to the Township.
Appropriations for the Township of Nutley Water and Sewer Utility shall be in the form and detail prescribed by the regulations of the Township and in accordance with the Local Finance Board and the Division of Local Government Services and shall include, at least:
A. 
Operations;
B. 
Interest and debt retirement; and
C. 
Deferred charges and statutory expenditures.
If in any year as a result of operations of such utility there shall be a surplus, or such surplus can be reasonably anticipated, then such surplus, when authorized by the Board of Commissioners, may be included in the budget as an item of miscellaneous revenue, under the caption of "Surplus from the Township of Nutley Water and Sewer Utility." Any such surplus may be transferred to the general fund upon the recommendation and approval of the Director of Revenue and Finance in coordination with the Director of the Department of Public Works. If in any year, as result of such operation, there shall be a deficit or anticipated deficit, then an appropriation for such deficit shall be included in the budget under the caption "Deficit of the Township of Nutley Water and Sewer Utility." If any anticipated deficit shall exceed the appropriation therefor, the excess shall be provided in the budget for the following year. This section shall not, however, supersede the specific dedication of receipts from the Township of Nutley Water and Sewer Utility as provided in any law which authorizes the establishment or creation of such utility unless so directed by the Board of Commissioners.
[Added 1-16-2024 by Ord. No. 3537]
The moneys derived from the operations of the sewer utility known as the "Township of Nutley Water and Sewer Utility" and any other moneys applicable to its support shall be segregated by the Township and held in a separate fund to be known as the "Nutley Township Water and Sewer Utility Fund" as prescribed by N.J.S.A. 40A:4-62 of the Local Budget Law and shall be applied by the Township as provided in said N.J.S.A. 40A:4-62. The Township Chief Financial Officer and such other person as may be designated by the Commissioner of Revenue and Finance are hereby authorized and directed to take such action and prepare such documentation as shall be necessary or appropriate to effect the establishment of the Nutley Township Water and Sewer Utility Fund. Transfer of revenues to the Nutley Township Water and Sewer Utility Fund shall occur over a six-month period from July 1, 2024, through December 31, 2024, and then over a one-year period from January 1, 2025, through December 31, 2025, pursuant to a plan to be developed by the Township Board of Commissioners.
[Added 1-16-2024 by Ord. No. 3537]
As required by N.J.S.A. 40A:4-63 of the Local Budget Law, moneys held in the Nutley Township Water and Sewer Utility Fund shall be treated by Township officials as moneys held in trust for the purposes for which the Nutley Township Water and Sewer Utility Fund was created, and no banking institution accepting the Nutley Township Water and Sewer Utility Fund shall divert the moneys therein to any other purpose.