(A) All municipalities are required to adopt an approved wastewater user charge system prior to receiving an SRF loan for the construction of wastewater transportation and treatment facilities. The requirements for the wastewater user charge system are included in the Federal Register under Title 40, Chapter 1 and Subchapter B, Part 35 and Subpart E. The wastewater user charge system was established by the United States Environmental Protection Agency (EPA) to ensure an equal distribution among wastewater customers of the operation, maintenance and replacement (OM&R) costs of the wastewater system. The equal distribution of the costs considers the strength and flow rate characteristics of wastewater customers as the basis of the wastewater user charge system.
(B) The charges that are assessed to each user for wastewater treatment shall reflect, as closely as possible, the actual OM&R cost incurred by the city to serve the customer. For flows with values less than or equal to normal strength of wastewater, the wastewater rates will be based on a cost per unit quantity. Influent flows that are above normal will be of excess strength and will be subject to a system of surcharges to be established at a time as excess strength flows appear.
(C) An acceptable user charge system must also meet the following requirements.
(1) Flow costs not directly attributable to users (i.e., infiltration/inflow) must be distributed among users of the treatment system based upon either of the following methods:
(a) The same manner used to distribute the cost of OM&R among users for their actual use; or
(b) Any one or combination of the following factors on a reasonable basis:
1. Flow volume of the user;
2. Land area of the user;
3. Number of hookups; and/or
4. Property valuation (user charge system based on ad valorem taxes).
(2) Each user must be notified, at least annually, with a regular bill, of the rate and that portion of the user charge which is attributable to wastewater treatment services.
(3) The user charges shall be reviewed annually and adjusted as necessary to meet actual OM&R expenses.
(4) The user charge system must take precedence over any agreements or contracts between the loan recipient and users where terms or conditions of the agreements are inconsistent with EPA regulations.
(5) A financial management system must be established to accurately account for revenues and expenditures of the treatment system.
(6) The user charge system must be incorporated in one or more municipal legislative enactments or other appropriate authority.
(D) The city will be seeking a federally assisted wastewater revolving loan fund for wastewater system improvements. The estimated cost of this project is shown in Example I:
Example I Wastewater System Improvements Estimated Project Cost | ||||||
Cost Classification | Local Funds | CDBG Grant | ARC Grant | Other Loans | FAWRF Loan | Total Project Costs |
Example I Wastewater System Improvements Estimated Project Cost | ||||||
Cost Classification | Local Funds | CDBG Grant | ARC Grant | Other Loans | FAWRF Loan | Total Project Costs |
Administrative and legal expense | $1,000 | $31,400 | $32,400 | |||
Construction | $152,000 | $598,100 | $300,000 | $1,258,592 | $2,308,692 | |
Contingencies (3%) | $40,000 | $30,000 | $70,000 | |||
Engineering | $5,000 | $72,500 | $339,971 | $417,471 | ||
Equipment | ||||||
Land acquisition | $7,000 | $8,000 | $15,000 | |||
Miscellaneous | $40,000 | $40,000 | ||||
Relocation expenses | ||||||
Total project costs each funding source | $165,000 | $750,000 | $300,000 | $1,668,563 | $2,883,563 | |
(Prior Code, § 54.20) (Ord. passed - -)