(a) Water commissioners shall have the supervision of such municipal water department and shall make and establish all needful water rates, charges, rules, and regulations for its control and operation. Such commissioners may appoint or remove a superintendent at their pleasure. The receipts derived by the municipal corporation from its waterworks shall only be used and applied to pay the principal and interest upon the water bonds of such municipal corporation, the expense of repairs and management of the water department, and payment into the dedicated fund created under subsection (b) of this section.

(b) Receipts derived by a municipality from its waterworks may be deposited in a dedicated fund created by the water commissioners under section 2804 of this title, to finance major rehabilitation, major maintenance and costs of upgrading the water supply system, and for the accumulation of funds to be used to match federal funds pursuant to 10 V.S.A. § 1624(d). Such revenues may include a surcharge established by the water commissioners of up to 15 percent on the costs of normal operations, maintenance, and debt service. The fund balance shall not exceed the estimated costs of the purposes for which the fund is established, and shall be maintained in deposits insured by the United States of America or an agency of the United States. Withdrawals shall be made only for purposes for which the fund was established. Such a fund shall meet the requirements of subdivision 4756(a)(4) of this title. (Amended 1997, No. 62, § 62, eff. June 26, 1997.)