(A) Consumption charge. Every user shall pay a consumption charge calculated on the basis of metered gallons per day of water consumed at a rate determined by City Council to produce an estimated 45% of the annual budgeted revenues of the system.
(B) Base charge. Every user shall pay a base charge calculated on the basis of meter capacity ratio in an amount determined by Council to produce an estimated 50% of the annual budgeted revenues of the system.
(C) System equity charge. The purpose of the system equity charge is to recover certain of the capital costs incurred to provide sufficient capacity to all users from those users that have not previously paid their share of those costs. Every person seeking to utilize the system for a use estimated to demand the reservation of greater capacity of the system shall pay a system equity charge established and managed as provided in this section.
(1) Calculation of estimated demand on capacity. The estimated demand on capacity of the system shall be based on the unit factor assigned to the type of use described in the table of unit factors approved by City Council from time to time, based on historic average use for each type of use.
(2) Calculation of system equity. System equity shall be determined annually on the basis of the value of system assets comprising the backbone facilities of the system, including, but not limited to, wells, reservoirs, treatment plants, mains, distribution mains and high service pumps, plus funds in the Replacement and Improvement Fund, plus accumulated depreciation, less the amount of any grants received to fund system assets, and less the principal amount of bonds remaining outstanding and incurred to finance those assets.
(3) Calculation of system equity charge. The system equity charge shall be determined each year as follows:
System Equity x residential equivalent unit factor Total number of existing Meter Equivalent Units
(4) Credits. If the system equity charge relates to an increase in demand on capacity, the city shall provide residential equivalent unit credits in the following order:
(a) The number of documented residential equivalent units previously paid for connection of that property to the system;
(b) If the number of residential equivalent units paid for previously can not be identified, the residential equivalent units shall be determined by the latest 2 year average billable flow divided by 250 gallons per day per year;
(c) If the latest 2 year average billable flow cannot be determined, the residential equivalent units shall be determined by the table of unit factor based on the properties' previous use.
(5) Use of proceeds of the system equity charge. Proceeds of the system equity charge shall be used exclusively to pay for replacements and improvements to the system, other than extensions of service to new users.
(6) Appeals. A person may challenge the unit factor applicable to the property being connected to the system, or the amount of the system equity charge by bringing an appeal to the Utility Board of Appeals within 24 months of payment of the charge and after review of the City Manager. In considering the appeal, the Utility Board of Appeals shall take into account the historical volume of use by the appellant for the previous 24 months.
(D) System equity charges for buildings built before 1960. The purpose of this section amendment is to encourage the redevelopment of structures originally constructed before December 31, 1959. For all structures built before this date which: 1) involves a change of use and 2) which use is estimated to demand a greater reservation of capacity, the equity investment fee shall be half of the fee set by resolution of the City Council for new construction. By resolution of the City Council, payment for the equity investment charge can be deferred for a period of up to 2 years. Any deferrals shall be filed as a lien on the property.
(E) Tap fee. Each person connecting to the system shall pay the actual costs of the material, meter, labor, equipment and supervision related to the installation of the connection and the meter, plus an administrative charge equal to 10% of the actual costs of the connection.
(F) Inspection fee. Each person connecting to the system shall also pay a fee for inspection of the premises during connection to the system, which fee shall be set from time to time by City Council by resolution.
(1993 Code, § 68-101) (Ord. passed 1-22-2001; Ord. passed 1-13-2003(1); Ord. 2014-01, passed 1-27-2014)