(A) Financial management. The city will establish an adequate financial management system which will accurately account for operation and maintenance plus replacement (O&M+R) revenues, expenditures, and sewer system debt service.
(1) The accounting system will segregate O&M+R revenues and expenditures from other wastewater revenues and expenditures to assure adequate revenues to properly operate and maintain the treatment works.
(2) The fund will have three accounts, one for O&M, one for replacement costs, and one for debt service. The user charge rates will be revised as needed to generate sufficient revenue to pay the total O&M+R and debt service.
(B) Inconsistent agreements.
(1) The city may have pre-existing agreements which address:
(a) The reservation of capacity in the city’s treatment plant; and/or
(b) The charges to be collected by the city in providing wastewater treatment services or reserving capacity.
(2) The user charge system shall take precedence over any terms of conditions of agreements or contracts between the grantee and users (including industrial users, special districts, other municipalities, or Federal agencies or installations) which are inconsistent with the requirements of § 204(b)(1)(A) of the Clean Water Act (33 U.S.C. § 1284).
(C) Wastewater treatment by-products. All revenue from the sale of treatment related by-products shall be used to offset the cost of operation and maintenance. User charges shall be proportionally reduced for all users. Total annual revenues received from the sale of a by-product shall be credited to the treatment works O&M cost no later than the fiscal year immediately following their receipt.
(Prior Code, § 16-6-7)