There is hereby created and established in the City, and in
accordance with New Jersey statutes, a public utility for budgetary
purposes. The name by which this utility shall be known is the "City
of Hoboken Water Utility" (hereinafter, the "Utility"). For budgetary
and accounting purposes, the Utility shall be a separate entity.
The Utility, which constitutes an agency of the City, exercising
public and essential governmental functions, shall have all the powers
necessary and convenient to carry out and effectuate the purpose and
the provisions of the New Jersey Statutes.
It shall be the function of the Utility to budget and account
for the System; to enforce the City's laws and regulations concerning
water service; to raise money necessary to pay for the lands, buildings,
equipment and facilities or other rights or interest therein acquired
for the System, and for improving and equipping the same; to construct,
reconstruct, alter, provide, renew and maintain the System or other
structures and equipment and provide for the care, custody and control
thereof in the operation of the Utility; to pay or make provision
for the payment of the reasonable expenses in each fiscal year of
the Utility; and to pay to those persons entitled thereto the interest
and principal on notes and bonds of the Utility, and to deposit and
accumulate reserve funds or reserves. The Utility shall monitor the
System operator's responsibilities to preserve, care for, lay
out, construct, maintain, improve and operate lands, buildings, equipment
and facilities used for the provision of the System.
The Utility shall be governed by and in accordance with the
laws of the State of New Jersey, the ordinances, the Administrative
Code, and the resolutions adopted by the City, and administrative
directives. The City shall amend its ordinances to effectuate the
establishment of a water utility.
The financial affairs of the Utility shall be governed in accordance
with the statutes applying to the financial affairs of a municipality
and utilities in general.
The Utility may, from time to time, acquire such real property
and/or equipment in the name of City as may be authorized by the City
Council in accordance with the laws of the State of New Jersey.
The City shall have the full authority to appoint and employ
all necessary employees for the Utility. Salaries of the employees
will be in accordance with classification and salary ordinances duly
adopted by the City Council. Portions of salaries of existing employees
may be prorated based on the amount of time spent on System operations
compared to the employees' full-time City responsibilities.
The Utility shall have authority to charge and collect monies
for the use of the System, whether they be user charges, rental fees,
or lease payments, and to use these monies to defray the cost of acquisition
of lands, buildings, equipment and facilities, rights and interests
therein, to equip the facilities, to pay the Utility's current
expenses and to pay the interest and principal on notes and bonds,
and to establish a surplus in an amount sufficient to provide for
the reasonable anticipation of any contingency that may affect the
operating of the Utility.
The Utility shall be under the administration, operation and
control of the Director of the Department of Environmental Services.
This ordinance shall take effect upon final adoption and publication
according to law.