The wastewater service charge for the use of and for the service supplied by the wastewater facilities of the city shall consist of a basic user charge established to pay administrative expenses of billing, collection, insurance and such other expenses classified by the city as fixed expenses in the operation and maintenance of the system; a basic user rate (OM&R) to pay all remaining expenses after administrative expenses of the cost of operation, maintenance and replacement of the system classified by the city as variable expense; a debt service charge to pay 100% of the amount required annually for interest and principal on outstanding wastewater revenue bonds and/or loans of the city including bond and depreciation reserve requirements and a surcharge, if applicable.
(A) The basic user charge shall be determined by dividing the total of fixed expenses as classified and determined by the city including administrative salaries, office expense, insurance and other administrative expense by the number of users connected to the system and subject to billing for service. The annual cost so determined as a fixed expense per use shall be designated as the basic user charge and shall be pro-rated over a 12-month or quarterly period for the purpose of billing as the basic user charge. Each bill shall be subject to the basic user charge.
(B) (1) The basic user rate (OM&R) shall be based on water usage as recorded by water meters and/or sewage meters for the purpose of paying variable costs associated with the operation, maintenance and replacement of the system. The basic user rate shall be determined by dividing the total of annual operation, maintenance and replacement expense by the total number 1000 gallons billed for sewer service in the preceding year. This calculation shall produce a unit rate per 1000 gallons for sewer service supplied which shall be billed as the basic user rate.
(2) (a) The basic user rate (OM&R) will be applicable for average and below average strength sewage. Average strength sewage is determined to have the following characteristics:
1. A five-day 20°C biochemical oxygen demand (BOD) of 200 mg/l.
2. A suspended solids (SS) content of 250 mg/l.
(b) It shall consist of operation and maintenance costs including replacement and shall be computed as described above.
(C) The debt service charge shall consist of the total of a fixed rate (the debt service charge) and a variable rate (the debt service rate). The debt or fixed service charge shall be applied monthly to each user connected into the sewerage system of the city. The debt service rate shall be determined by dividing an amount equal to 100% of annual principal and interest on revenue bonds and loans applicable to the sewer system plus 25% coverage for bond and loan reserves as shall be established from time to time by ordinance of the city.
(D) (1) A surcharge, in addition to the above mentioned, will be levied upon all users whose discharges exceed the average concentrations for BOD (200 mg/1) and SS (250 mg/1). The surcharge will be based on water usage as recorded by water meters and/or sewage meters for all wastes that exceed the parameters outlined above. Section 52.107 specifies the procedure to compute a surcharge. The unit rate of BOD and SS surcharge calculations shall be computed as follows:
(a) Proportion the estimated annual revenue required to operate and maintain the wastewater facilities, including the equipment replacement fund, to the major plant categories.
(b) Proportion the costs of the major plant categories to BOD and SS.
(c) Estimate pounds of BOD and pounds of SS.
(d) Compute the unit costs per pound of BOD and SS.
(2) The adequacy of the wastewater service charge shall be reviewed annually and shall be revised periodically to reflect a change in debt service or a change in operation and maintenance costs, including replacement costs, but shall not be considered as part of other wastewater revenues for the calculation of other wastewater rates.
(3) The users of wastewater treatment services will be notified annually, in conjunction with a regular bill, of the rate and that portion of the user charges that are attributable to the wastewater treatment operation, maintenance and replacement.
(Ord. 1121, passed 12-20-99)