The purpose of this chapter shall be to generate sufficient revenue to pay all costs for debt service, reserves, depreciation and the operation and maintenance of the complete water system. The costs shall be distributed to all users of the system in proportion to each user's contribution to the total usage of the water system.
A. Total Annual Cost: The town shall determine the total annual costs of debt service, reserves, depreciation and operation and maintenance of the water system which are necessary to maintain the capacity and performance. The total annual cost of operation and maintenance shall include, but not be limited to, necessary modifications, power, sampling, laboratory tests and reasonable contingency fund.
B. Water System Replacement Fund: A reserve fund called the water facilities replacement fund is hereby established within the water utility fund for the purpose of providing sufficient funds to be expended for obtaining and installing equipment, accessories and appurtenances during the useful life of the water system necessary to maintain the capacity and performance for which such facilities are designed and constructed. The fund schedule shall be such as is shown on file in the office of the town clerk-treasurer. The fund will be reviewed on an annual basis by the town commission.
C. Review Of Water Service Charge: The town shall review the total annual cost of operation, maintenance and indebtedness annually and will revise the system as necessary to assure equity of the service charge system established herein and to assure that sufficient funds are obtained to adequately operate and maintain the water system. If a significant user, such as an industry, has completed in plant modifications which would change that user's water contribution, the user can present, at a regularly scheduled meeting of the town commission, such factual information and the town shall determine if the user's water charges are to be changed. (Per motion dated 3-12-2009)