(A) It is hereby determined to be desirable and necessary, for the public health, safety and welfare of the village, that the sanitary sewage disposal system of the village be operated on a public utility rate basis, in accordance with the provisions of Public Act 94 of 1933, being M.C.L.A. §§ 141.101 et seq., as amended.
(B) (1) Whenever the words “the system” are referred to in this section, they shall be understood to mean the complete sanitary sewage disposal system of the village, including all sewers, pumps, lift stations, treatment facilities, and all other facilities used or useful in the collection, treatment and disposal of domestic, commercial or industrial wastes, including all appurtenances thereto and including all extensions and improvements thereto which may hereafter be acquired.
(2) Whenever the words “revenues” and “net revenues” are used in this section, they shall be understood to have the meanings as defined in Public Act 94 of 1933, § 3, being M.C.L.A. § 141.103, as amended.
(C) The operation, maintenance, alteration, repair and management of the system shall be under the supervision and control of the Village Council. The Village Council may employ such person or persons in such capacity or capacities as it deems advisable to carry on the efficient management and operation of the system and may make such rules, orders and regulations as it deems advisable and necessary to assure the efficient management and operation of the system.
(D) Rates to be charged for service furnished by the system shall be as follows:
(1) Sewer use charges. Sewer use charges shall be billed at the rate of .70 times the quarterly water bill for the premises.
(2) Special rates. For miscellaneous or special services for which a special rate shall be established, such rates shall be fixed by the Village Council.
(3) Billing. Bills will be rendered quarterly at the same time as the village water billings and shall bear the same payment and penalty provisions as the water bills.
(4) Enforcement.
(a) The charges for services which are under the provisions of Public Act 94 of 1933, § 21, being M.C.L.A. § 141.121, as amended, make a lien on all premises served thereby, unless notice is given that a tenant is responsible, are hereby recognized to constitute such lien, and whenever any such charge against any piece of property shall be delinquent for six months, the village official or officials in charge of the collection thereof shall certify annually, on March 1st of each year, to the tax-assessing officer of the village the facts of such delinquency whereupon such charge shall be by him or her entered upon the next tax roll as a charge against such premises and shall be collected and the lien thereof enforced in the manner as general village taxes against such premises are collected and the lien thereof enforced. Where notice is given that a tenant is responsible for such charges and service as provided by M.C.L.A. § 141.121, no further service shall be rendered to such premises until a cash deposit in the amount of $20 shall have been made as security for payment of such charges and service.
(b) In addition to the foregoing, the village shall have the right to shut off water and sewer service to any premises for which charges for sewer service are more than three months delinquent, and such service shall not be reestablished until all delinquent charges and penalties and a turn-on charge, to be specified by the Village Council, have been paid. Further, such charges and penalties may be recovered by the village by court action.
(E) No free service shall be furnished by the system to any person, firm or corporation, public or private, or to any public agency or instrumentality.
(F) The rates hereby fixed are estimated to be sufficient to provide for the payment of the expenses of administration and operation, such expenses for maintenance of the system as are necessary to preserve the same in good repair and working order, to provide for the payment of general obligation bonds of the village issued to improve the system, and to provide for such other expenditures and funds for the system as this section may require. Such rates shall be fixed and revised from time to time as may be necessary to produce these amounts.
(G) The system shall be operated on the basis of a fiscal year corresponding with that of the village water system.
(H) The revenues of the system shall be set aside and collected and deposited in a separate depositary account in a designated bank duly qualified to do business in Michigan, in an account to be designated “Sewage Disposal System Receiving Fund” (hereinafter, for brevity, referred to as the “Receiving Fund”), and the revenues so deposited shall be transferred from the Receiving Fund periodically in the manner and at the times hereinafter specified.
(1) Operation and Maintenance Fund. Out of the revenues in the Receiving Fund there shall be first set aside quarterly into a depositary account, designated “Operation and Maintenance Fund,” a sum sufficient to provide for the payment of the next quarter's current expenses of administration and operation of the system and such current expenses for the maintenance thereof as may be necessary to preserve the same in good repair and working order.
(2) General Obligation Debt Retirement Fund. There shall next be established and maintained a depositary account, to be designated “General Obligation Debt Retirement Fund,” which shall be used solely for the payment of the General Obligation Sewage Disposal System Bonds, dated April 1, 1970, of the village. There shall be deposited in the fund quarterly, after requirements of the Operation and Maintenance Fund have been met, such sums as shall be necessary to pay the principal and interest on the bonds when due. Should the revenues of the system prove insufficient for this purpose, such revenues may be supplemented by any other funds of the village legally available for such purpose.
(3) Replacement Fund. There shall next be established and maintained a depositary account, designated “Replacement Fund,” which shall be used solely for the purpose of making major repairs and replacements to the system if needed. There shall be set aside into the fund, after provision has been made for the Operation and Maintenance Fund and the General Obligation Debt Retirement Fund, such revenues as the Village Council shall deem necessary for this purpose.
(4) Improvement Fund. There shall next be established and maintained an “Improvement Fund” for the purpose of making improvements, extensions and enlargements to the system. There shall be deposited into the fund, after providing for the foregoing fund, such revenues as the Village Council shall determine.
(5) Surplus moneys. Moneys remaining in the Receiving Fund at the end of any operating year, after full satisfaction of the requirements of the foregoing funds, may, at the option of the Village Council, be transferred to the Improvement Fund or used in connection with any other project of the village reasonably related to purposes of the system.
(6) Bank accounts. All moneys belonging to any of the foregoing funds or accounts may be kept in one bank account, in which event the moneys shall be allocated on the books and records of the village within this single bank account, in the manner above set forth.
(I) In the event the moneys in the Receiving Fund are insufficient to provide for the current requirements of the Operation and Maintenance Fund, any moneys or securities in other funds of the system, except sums in the General Obligation Debt Retirement Fund derived from tax levies, shall be transferred to the Operation and Maintenance Fund to the extent of any deficit therein.
(J) Moneys in any fund or account established by the provisions of this section may be invested in obligations of the United States of America, in the manner and subject to the limitations provided in Public Act 94 of 1933, being M.C.L.A. §§ 141.101 et seq., as amended. In the event such investments are made, the securities representing the same shall be kept on deposit with the bank or trust company having on deposit the fund or funds from which such purchase was made. Income received from such investments shall be credited to the fund from which the investments were made.
(Ord. 19, passed 9-14-81; Am. Ord. 19A, passed 3-9-98)