This Act may be cited as the Kaikohe Borough Empowering Act 1958.

In this Act, unless the context otherwise requires,—

The Council may from time to time, in manner provided by the Municipal Corporations Act 1954, make bylaws providing for the payment of an annual fee for sewerage purposes (hereinafter referred to as the sanitation fee), and may in every year levy a sanitation fee in accordance with such bylaws on all rateable property situated within the borough.

Any such bylaws may make provision for the exemption from payment of the sanitation fee or part thereof of any owner or occupier of property which is not served by any such sewerage system or which could be so served but is not connected thereto.

The sanitation fee may in any year be of a sufficient amount to provide for the payment of the whole or part of the interest and other charges for that year on any loan or loans heretofore or hereafter raised by the Council for sewerage purposes and of the cost of maintaining any sewerage service provided by the Council.

Where any loan has been raised by the Council for the purpose of carrying out any sewerage or drainage scheme and has been secured by a special rate levied over the rateable property within the borough or any defined portion of the borough, the Council may in any year in which the amount collected or to be collected by way of sanitation fee is available and sufficient for the payment of the whole or part of the interest and other charges on the loan refrain from levying the said special rate or reduce the amount thereof to be levied in that year, as the case may be.

The proceeds of any sanitation fee shall be available only for the purposes mentioned in subsection three of this section.

A sanitation fee shall for all purposes be deemed to be a separate rate.

Nothing in this Act shall in any way affect the rights or interests of any debenture holder or other creditor of the Council.