(A) The City Administrator shall prepare an annual report which shall include at least the following:
(1) Total costs for OM&R for the previous year and estimated for the next year, divided into the established user categories and further distributed among the functions for these categories: treatment, conveyance, collection and administration;
(2) Total revenue collected by user and user class for the proceeding year;
(3) Estimated or measured flow discharged by each user and user class for the preceding and succeeding years; and
(4) Method for proportionately distributing the succeeding year’s estimated OM&R costs to each user and user class, which shall comprise the proposed user charge system.
(B) Each user of sewer service shall pay the charge(s) applicable to the type of service, and in accordance with the most recent resolution of the City Council establishing a rate schedule for users. The resolution shall be based on a sewer utility budget estimating sewer revenues and expenditures in the succeeding year and shall meet these general requirements:
(1) Maintain the proportionate distribution of OM&R costs among users and user classes;
(2) Generate sufficient revenue to pay the total OM&R costs necessary for proper OM&R of the sewer utility;
(3) Apply excess revenues collected from a class of users to the costs of OM&R attributable to that class for the next year and adjust the user charges accordingly; and
(4) Calculate the user charge based upon the flow and waste load estimated to be discharged to the sewer utility in the succeeding year, including infiltration and inflow.
(`87 Code, § 403.06)