(A) The adequacy of the water service charge shall be reviewed, not less often than annually by the City Council with assistance, if requested by the Council, from the City Engineer and any accountant performing audit services for the city. The water service charge rates shall be revised periodically to reflect the change in local capital costs or operation, maintenance, and replacement costs. The rates established by the city from time to time shall include a basic user charge, a debt service charge, and a capital improvement charge. The basic user charge is levied on all users to recover the operation, maintenance, and replacement (OM&R) costs and shall be based on water usage as recorded by water meters.
(B) The basic user charge shall be computed as follows:
(1) Estimate the annual water volume;
(2) Estimated the projected annual revenue required to operate and maintain the water facilities, including a replacement fund for the year, for all works categories; and
(3) Compute costs per 1,000 gallons.
(C) The debt service charge is computed by apportioning the annual debt service as a charge per 1,000 gallons. The capital improvement charge is levied on users to provide for capital improvements, extensions, or reconstruction of the waterworks. The capital improvement charge is computed by apportioning the annual amount to be accrued as a charge per 1,000 gallons.
(Prior Code, § 38-3-76)