New Mexico Statutes
Article 21 - Water and Sanitation Districts
Section 73-21-40 - Rates; bondholders' remedy and taxpayer elector.

The board of each district issuing revenue bonds under the provisions of the Water and Sanitation District Act shall establish rates or fees for services rendered by the district utility systems to create an income sufficient to pay all reasonable expenses of operation and create a net revenue that shall be sufficient to pay interest coupons on the revenue bonds, as they mature, and to provide a sinking fund that shall be adequate to discharge the bonds when they mature. It is a board's duty to maintain the rates and fees continuously until the bonds issued by that board have been fully liquidated. In the event of a board's failure or refusal to do as required by this section, all the members of the board are subject to the penalties provided in Section 73-21-42 NMSA 1978, and any bondholder or a number of taxpayer electors of the district amounting to twenty-five persons or five percent of the electors, whichever is less, has the right to apply to the district court of the county where a district is located for a mandatory order requiring the establishment by a board of rates or fees that shall be adequate to meet the requirements of that act.
History: 1941 Comp., § 77-3437, enacted by Laws 1951, ch. 195, § 5; 1953 Comp., § 75-18-37; Laws 1985, ch. 166, § 2; 1978 Comp., § 73-21-40; 2009, ch. 241, § 9.
The 2009 amendment, effective June 19, 2009, in the first sentence, deleted "It is made mandatory upon boards of directors"; after "shall establish rates", added "or fees"; and after "services rendered by the", deleted "water or sewer system or joint water and sewer system as will" and added "district utility systems to"; and in the last sentence, after "or rates", added "or fees that".
Am. Jur. 2d, A.L.R. and C.J.S. references. — 78 Am. Jur. 2d Waterworks and Water Companies §§ 3, 4.
Discrimination between property within and that outside municipality or other governmental district as to public service or utility rates, 4 A.L.R.2d 595.
39A C.J.S. Health and Environment § 52; 94 C.J.S. Waters §§ 284 to 308.

Structure New Mexico Statutes