(a) The governing body or board of trustees having management and control of a utility system may adopt rules to:
(1) govern the provision of and payment for service; and
(2) provide for the discontinuance of service for failure to pay when due until payment is made.
(b) The governing body may provide penalties for:
(1) the violation of a rule adopted under this section;
(2) the use of service without the consent or knowledge of the authorities in charge; or
(3) any interference with, trespass on, or injury to a system or appliance or the premises on which the system or appliance is located.