(A) (1) The municipality will construct extensions to its water lines to points within its service area but the municipality shall not be required to make such installations unless the customer pays to the municipality the entire cost of the installation.
(2) All line extensions shall be evidenced by a contract signed by the municipality and the person advancing funds for said extension, but each contract shall be null and void unless approved by the Farmers Home Administration and other governing bodies.
(B) If refund of the advance is to be made the following method shall apply:
(1) Twenty percent of the total gross revenue of water sales per year for each service connected to the new extension described in the agreement, for a period not to exceed five years, provided that the aggregate payments do not exceed the total amount deposited; and
(2) (a) No refund shall be made from any revenue received from any lines leading up to or beyond the particular line extension covered by contract.
(b) All decisions in connection with the manner of installation of any extension and maintenance thereof shall remain in the exclusive control of the municipality and such extension shall be the property of the municipality and no other person shall have any right, title or interest therein.
(Ord. 1977-4, passed 5-2-1977)