§ 34–2202.07. Water and Sewer Enterprise Fund; assets of the Water and Sewer Utility Administration of the Department of Public Works; transfer of funds and assets; pledge of revenues.

(a) There is established the Water and Sewer Authority Enterprise Fund (“Fund”) which shall be the successor to the Water and Sewer Enterprise Fund established pursuant to § 47-375(g). The Fund shall be operated by the Authority in accordance with generally accepted accounting principles.

(b) Subject to the provisions made by the Authority pursuant to this subchapter for security of revenue bonds, all revenues, proceeds, and moneys from whatever source derived, except those collected or received from the storm water fee, which are collected or received by the Authority shall be credited to the Fund and shall not, at any time, be transferred to, lapse into, or be commingled with the General Fund of the District of Columbia, the Cash Management Pool, or any other funds or accounts of the District of Columbia, except that funds shall be transferred to the District of Columbia Treasurer:

(1) To pay for goods, services, and property contracted for by the Authority from the District as authorized by § 34-2202.03(4) and (10) and § 34-2202.17(c);

(2) To make debt service payments required by subsection (f) of this section;

(3) To enable the Treasurer to make disbursements on the Authority’s behalf until the Authority’s own disbursement system is established, as authorized by § 34-2202.17(f); or

(4) As otherwise authorized by this subchapter.

(d) Any pledge by the Authority of any funds on deposit in the Fund shall be effective, valid, perfected, and binding from the time the pledge is made with or without the delivery of any funds, and with or without any further action. Such pledge shall be effective, valid, perfected, and binding whether or not any statement, document, or instrument relating to such pledge is recorded or filed. The pledged revenues shall be immediately subject to the lien of the pledge, whether or not there has been any physical delivery. The lien of any pledge shall be valid and binding against all parties having claims of any kind in tort, contract, or otherwise against any person receiving distribution of revenues whether or not the parties have notice of the pledge.

(e) Within 120 days of April 18, 1996, the Mayor shall cause to be performed an independent audit of the assets and liabilities of the Department of Public Works, Water and Sewer Utility Administration. The independent audit shall also determine the present day value of services provided by the District government during the preceding 20-year period to the Water and Sewer Utility Administration, or any of its predecessor administrations or agencies. The audit shall determine the amount and adequacy of any funding provided by the Water and Sewer Utility Administration for these services. The Mayor shall provide the Council with a final version of the independent audit. Based upon the results of the independent audit, and notwithstanding the provisions of §§ 1-315.01 through 1-315.07, the Mayor shall, through an intra-District government transfer, permit the Authority to use any assets the Mayor considers to be required for the Authority’s operations upon such terms and conditions as the Mayor finds appropriate, and shall transfer any liabilities that are directly attributable to the water distribution system or sewage collection, treatment, and disposal systems, other than the general obligation bonds referred to in subsection (f) of this section. The District government shall retain full legal title to, and a complete equitable interest in, all assets made available for the Authority’s use. Pending the intra-District government transfer required by this subsection, all assets and liabilities of the Water and Sewer Utility Administration, as indicated on the balance sheet prepared by the Water and Sewer Utility Administration just prior to April 18, 1996, shall be transferred for the Authority’s use on an interim basis. Assets made available to the Authority pursuant to this subsection shall remain under the control of the Authority for as long as Authority revenue bonds are outstanding, unless all of the outstanding revenue bonds are defeased pursuant to § 34-2202.13, or otherwise.

(f) The Authority shall transfer to the General Fund of the District funds necessary for the District to make debt service payments on District general obligation bonds related to the Department of Public Works, Water and Sewer Utility Administration. The payments shall be in the amount and made at such times as the Treasurer of the District of Columbia requires in writing, and the payments shall continue until the District’s general obligations bonds related to the Department of Public Works, Water and Sewer Utility Administration are fully paid.

(g)(1) Twelve months subsequent to the completion of the first full year of operation of the Authority, the chairperson of the Board shall cause a study to be undertaken to determine the feasibility of establishing the Authority as an independent regional authority and to make recommendations for the ongoing relationship of user jurisdictions to the Authority.

(2) The feasibility study shall include base-line data obtained pursuant to the requirements for annual reports as set forth in § 34-2202.05(c), (d), and (e), and the audit of the assets and liabilities of the Department of Public Works, Water and Sewer Utility Administration required by subsection (e) of this section.

(3) The study recommendations shall include the manner in which the District would be compensated by the Authority for the District’s historic investment in the capital improvements and maintenance of the Blue Plains facility, should the Authority become an independent regional authority, as well as options for retention by the District of the land upon which any Authority plant and facilities are located within the boundaries of the District.

(4) Within 180 days of its inception, the study and its recommendations shall be completed and submitted to the Mayor, the Council, and the appropriate official of each of the other participating jurisdictions.

(Apr. 18, 1996, D.C. Law 11-111, § 207, 43 DCR 548; Apr. 9, 1997, D.C. Law 11-184, § 202(g), 43 DCR 4265; June 9, 2001, D.C. Law 13-311, § 2(c), 48 DCR 3512.)

Prior Codifications

1981 Ed., § 43-1677.

Section References

This section is referenced in § 8-205, § 34-2202.09, and § 34-2202.13a.

Effect of Amendments

D.C. Law 13-311, in subsec. (b), inserted “, except those collected or received from the storm water fee,”.

Emergency Legislation

For temporary amendment of section, see § 2(g) of the District of Columbia Water and Sewer Authority Emergency Amendment Act of 1996 (D.C. Act 11-293, July 9, 1996, 43 DCR 4160).

For temporary amendment of section, see § 2(g) of the Water and Sewer Authority Congressional Review Emergency Amendment Act of 1996 (D.C. Act 11-397, October 9, 1996, 43 DCR 5686), § 2(g) of the Water and Sewer Authority Second Congressional Review Emergency Amendment Act of 1996 (D.C. Act 11-466, December 30, 1996, 44 DCR 165), and § 2(g) of the Water and Sewer Authority Congressional Review Emergency Amendment Act of 1997 (D.C. Act 12-48, March 31, 1997, 44 DCR 2105).