The council shall provide by ordinance the formula to establish water and sewer rates, which shall be set by resolution of the council upon adoption of the annual budget. The council, by resolution, may provide for the installation of meters upon any premises supplied with water, and for the payment for the water actually used as registered by such meter; the time when such charges shall be paid; the date when same shall become a lien upon the property; the penalties for non-payment of such charges; the steps to be taken to enforce payment thereof; and provide that in case of non-payment that the supply of water to any premises may be shut off or stopped. All water and sewer charges shall be paid to the city treasurer.