(a) All water rates of the Village of Proctorsville in effect at the time of merger shall continue in effect until changed by the Selectboard of the Town of Cavendish. All costs of the Water Department shall be paid by the users.

(b) Annual water charges shall be at a rate sufficient to cover annual expenditures, adequate reserves, temporary indebtedness, and the amortizing of bonded indebtedness and interest.