The WWTP system development charge fee schedule reflects a financial arrangement that assures that system development charges are proportionally related to anticipated growth, on an average annual basis, until the City is substantially built out and the capacity of its wastewater treatment system is substantially exhausted. The actual annual growth in a given year may vary from the anticipated average annual growth.
(a) All WWTP system development charges collected shall be deposited into the WWTP Capital Improvements Fund account. WWTP system development charges shall normally be used to pay wastewater treatment plant debt service obligations for the year in which they were received. In any year that a balance exists in the WWTP Debt Stabilization Fund, system development charge revenues shall contribute to, but shall not be limited to payment of, the balance of the debt service due for the current year. In any year when WWTP system development charge revenue exceeds the debt service for that year, the balance shall first be used to repay, with interest, any outstanding loans from other City funds.
(b) At the beginning of each year, funds remaining in the WWTP Capital Improvements Fund account from the previous year shall be transferred into the "WWTP Debt Stabilization Fund" account. Funds in the WWTP Debt Fund Stabilization account shall be the first funds used to pay debt service for the current year consistent with the first in, first out (FIFO) principles of this chapter.
(c) In any year when both the WWTP system development charge revenue and the WWTP Debt Stabilization Fund balance are insufficient to pay the debt service for that year, the City shall loan or transfer to the WWTP Capital Improvements Fund, funds sufficient to pay the debt service. This loan or transfer to the WWTP Capital Improvements Fund shall bear interest at the prevailing rates which the City would pay at that time, for short term borrowing.
(d) Any balance remaining in the WWTP Debt Stabilization Fund or the WWTP Capital Improvements Fund after all financial obligations of the funds have been paid, shall be refunded pursuant to the provisions of this chapter.
(Ord. 3273. Passed 5-9-24.)