(A) The initial sewer connection fee and minimum charge shall be as determined from time to time by the Council by resolution.
(B) It is hereby determined necessary for the protection of the public health, safety, and welfare to conform with federal, state, and local laws and regulations that a system of charges for sewerage service be established which allocates the cost of providing sewerage service to each user in such a manner that the allocated costs are proportionate to the cost of providing sewerage service to that user insofar as those costs can reasonably be determined. A sewer use charge is hereby established.
(C) Rates for each fiscal year for the sewer use charge shall be established biennially by resolution of the Council on or before the last day of the previous fiscal year. The rate schedule shall establish separate rates for users in the commercial classification. Rate schedules shall be based upon volume of waste water, discharge, and BOD and SS of the waste water discharge. Rates shall be designed to recover the cost of rendering sewage services for the year during which the rates shall be in effect. Rates shall be established so as to maintain adequate fund reserves, to provide for reasonable expected variations in the cost of providing services, as well as variations in the demand for service. The annual review of rates shall be conducted so as to accomplish the following:
(1) Maintain the proportionate distribution of operation and maintenance costs among users and user charges;
(2) Generate sufficient revenue to pay the total costs necessary to the proper operation and maintenance of the sewerage system; and
(3) Apply excess revenue collected from a class of users to the cost of operation and maintenance of the system attributable to that class for the next year and adjust the rate accordingly.
(D) The Sewer Department shall submit annually to the Council not later than 60 days prior to the end of the fiscal year an annual sewer report, including a recommended rate schedule for each sewer use charge established herein for the following fiscal year. The report shall contain data utilized in determining said rate schedule.
(E) The rate schedules adopted by the Council shall be based upon the following factors:
(1) The total applicable cost of salaries and benefits of employees engaged in providing sewerage service;
(2) Applicable operating expenses, including parts, materials, and services incurred in providing sewerage service;
(3) Applicable equipment replacement costs necessitated by the provision of sewerage services;
(4) Appropriate indirect costs in rendering sewerage-related services such as purchasing, accounting, billing, and administration;
(5) Other pertinent factors as determined by the Council; and
(6) The sewer user charge rate shall be determined according to the following formula:
UC = VQ x VOM +
C
OM
(CN) (12)
UC = User charge
VQ = Volume of waste water in millions of gallons per unit per month
VOM = Unit cost of sewerage service allocable in one million gallons of waste water
CN = Number of sewer customers
COM = Cost of sewerage service allocable by customer
(F) For the purposes of determining the sewer use charge, users shall be assigned by the Sewer Department to one of the following classifications: residential or commercial.
(G) A proportionate charge shall be made to all users that discharge waste water, either directly or indirectly, into the town sewerage system. Such charges shall be based on the rate schedules issued pursuant to division (C) above and the cost factors listed in division (E) above.
(H) Any user who fails or refuses to install a water meter to any source of water supply used, within 30 days after written notice by the Director of sewers to do so, shall be charged on water usage estimated by the Sewer Department.
(I) A sewer bill shall be rendered monthly.
(J) There shall be established a Sewerage Operations, Maintenance, and Replacement Fund. All sewer user charge revenues shall be allocated to the Sewerage System Operation, Maintenance, and Replacement Fund, and such Fund shall be utilized.
(1989 Code, § 14-2-2) (Ord. 89-07, passed 8-24-1989)