(a) There shall be a Town of Stowe Water Department which shall be responsible initially for continuing the present specific water services in existence and being provided on June 30, 1996.

(b) The water system taken over from the Village of Stowe and any additions thereto or modifications thereof shall be maintained separate from all other departments of the Town and no part of the rents and revenues therefrom may be used for any other purpose.

(c) Unless otherwise voted by the Town at a Town meeting, all costs of the Water Department shall be paid by the users thereof and the annual water rents or charges shall be at a rate sufficient to cover annual expenditures, temporary indebtedness, the amortizing of bonded indebtedness and interest, and any dedicated (sinking) funds. Prior to the setting of the annual budget and annual water rents or charges, the water commissioners shall each year hold a public hearing for the purpose of receiving input concerning a proposed annual budget and annual water rents or charges for the Water Department. The public notice for such public hearing shall be given not less than 15 days prior to the date of the public hearing by the publication in a newspaper of general circulation in the Town of Stowe and by the posting of the same information in one or more public places within the Water Department service area. With specific reference to the legislative authority contained in 24 V.S.A., chapter 53, subchapter 2, "Indebtedness for Public Utility Purposes," sections 1821-1828, the Stowe Water Utility Commission is permitted to issue revenue-backed bonds and/or general obligation bonds for any capital improvement purpose related to their responsibilities to operate such utilities for the benefit of the people of Stowe, provided each such issue of bonds is approved by the Selectboard and the voters according to law.

(d) The Selectboard of the Town of Stowe shall be the water commissioners and shall have the power to adopt and enforce rules, regulations, or ordinances concerning the control and operation of such water system in accordance with the powers enumerated in the general laws of the State with respect to water works and water supply.

(e) The Water Department service area may be enlarged or modified by the Water Commission after holding a public hearing on any such proposed enlargement or modification. The public notice for each such public hearing shall be given not less than 15 days prior to the date of the public hearing by the publication of the date, place, and purpose of the hearing in a newspaper of general circulation in the Town of Stowe and by the posting of the same information in one or more public places within the Water Department service area. (Added 1999, No. M-9 (Adj. Sess.), § 2; amended 2001, No. M-7, § 2, eff. May 21, 2001; 2009, No. M-18 (Adj. Sess.), § 17, eff. May 5, 2010; 2013, No. M-4, § 2, eff. May 8, 2013.)