(A) The City Council has determined that the purpose of sewer and water rates is to produce sufficient revenues each year to pay the costs of service. The City Council has found that annual revenues and expenditures of the system can fluctuate as much as 25% from year to year. Based on the recommendations of the city's engineers, City Council has determined that, in order to provide adequate, but not excessive, annual adjustments in revenue levels in a timely manner, the Department shall develop the costs of service based on 5 year projections of cash needs, adjusted for inflation, and shall base rates each year on the estimated needs for those 5 year periods, adjusted annually.
(B) The costs of service to be paid from revenues shall include all of the following:
(1) Operation and maintenance expenses;
(2) Debt service expenses; and
(3) Capital expenses not funded from bonded indebtedness.
(1993 Code, § 68-97) (Ord. passed 1-22-2001; Ord. 2014-01, passed 1-27-2014)