A. The town of Hawthorne sewer revenue system shall be responsible for the fiscal operations of the town of Hawthorne wastewater treatment facilities. The utilities department shall conduct fiscal operations as two (2) discrete programs consisting of the capitalization system and the user charge system, maintaining separate accounts for each program within the financial management system. The director must provide the board with annual audits of the financial management system performed by certified public accountants to enable the board to evaluate and adjust sewer fees. The fees shall be published in appendix A, available at county clerk's office.
B. The capitalization system shall provide funding for capital expenditures and the payment of interest and redemption of principal on debt issues. Each of the following revenue sources shall cumulatively fund the capitalization system:
1. Monthly Capitalization Charges: That portion of the monthly sewer fee charged each user of the sewer system dedicated exclusively to the capitalization system. The director may grant a waiver of the capitalization charge, in whole or in part, to any user whose income level meets guidelines as published in appendix B available at county clerk's office and established by resolution of the board. The director may grant a waiver of the capitalization charge, in whole or in part, to any user who, in the discretion of the director, merits a waiver as a result of special circumstances;
2. Penalty Assessments: Late payment charges and penalties resulting from violations of this chapter;
3. Miscellaneous Unearned Income: All income to the utilities department related to the sewer system and not otherwise allocated; and
4. Sewer Connection Charge: At the time application is made for sewer service, all new users of sewer facilities shall pay a fee determined by the utilities department and based upon the estimated quantity of sewage which the sewer system must handle for the new user in relation to the usage of an average single- family dwelling. An average single-family dwelling unit shall be considered one equivalent dwelling unit (EDU) or twenty five (25) sewer fixture units (SFU). The minimum SFU count for residential, enterprise commercial and industrial shall be twenty five (25) and in no case shall there be a discount or refund for a reduction in fixture units.
C. The user charge system shall be the exclusive source of funds to meet all operation, maintenance and replacement (OM&R) costs of the treatment works. Each user of the sewer system shall pay its proportionate share of OM&R costs, based upon actual or estimated contribution to the volume and loading of the treatment facility and, in addition, each user must pay a proportion of the cost associated with treating water entering the system through infiltration and inflow.
1. User Charge Rate Revenue: The user charge rate must generate revenue sufficient to meet OM&R costs through customer charges which are proportionate to usage based on the following rate classifications:
a. Residential User Charge Rate (UCR): Based on actual metered consumption, rounded to the nearest thousand, of each one thousand (1,000) gallons of water, except for the months of March through October when a residential user's assessed sewage volume shall be calculated not to exceed the user's average consumption during the months of November through February as determined from historical data on file with the utilities department. No maximum assessed volume calculations shall apply during the months of November through February. Fees for new residential services connecting to the system during the months of March through October shall be based upon actual water consumption but not exceeding the average water consumption of similar residences for the months of November through February until such time as the winter average for the new residence can be determined;
b. Exempt Enterprise User Charge Rate: Said rate shall apply to those customers using water outdoors during the growing season and shall be based on actual metered consumption, rounded to the nearest thousand, of each one thousand (1,000) gallons of water, except for the months of March through October when an exempt enterprise user's sewage volume must be calculated not to exceed the user's average water consumption during the months of November through February as determined from historical data on file with the utilities department. No maximum assessed volume calculations shall apply during the months of November through February. Fees for new exempt enterprise services connected to the system during the months of March through October shall be based on actual water consumption but not exceeding the average consumption of similar exempt enterprises for the months of November through February until such time as the winter average for the new exempt enterprise can be determined; and
c. Nonexempt Enterprise User Charge Rate: Based on actual metered consumption, rounded to the nearest thousand, of each one thousand (1,000) gallons of water. No calculated limitation on assessed sewage volume shall apply.
d. Surcharge Fee: A surcharge fee shall be imposed upon all enterprise users who discharge waste which exceeds the residential loading benchmarks. The surcharge shall reflect the increased cost of treating the effluent.
2. Equivalent Dwelling Unit And Loading Table: The predominant user class is residential which has a value equal to twenty five (25) sewer fixture units (based on uniform plumbing values) which is equivalent to one equivalent dwelling unit (EDU). An equivalent dwelling unit table and loading table will be utilized by the utilities department to standardize types of users according to common volume calculations as follows:
User Type | EDU Volume | |
All single-family dwellings | 1 | |
Each unit of a multiple-family dwelling (duplexes, etc.) | 1 | |
Apartments (per unit) | 1 | |
Mobile homes (each) | 1 | |
Overnight recreational vehicle parking (per every 5 RV sewer hookups) | 1 | |
Any public dump station (Recreational vehicles only) | 5 | |
Loading Levels Per EDU Of Domestic Wastewater | ||
Parameter | Strength | |
BOD r | 200 mg/liter | |
SS d | 200 mg/liter | |
All sewer users not specifically identified above will be classified as enterprise/industrial users and their user charge will include a surcharge based upon the equivalent dwelling unit table and loading table.
3. User Charge Rate: The user charge rate (UCR) shall be based on the total operation, maintenance and replacement costs of the entire Hawthorne sewer system attributable to each one thousand (1,000) gallons of sewage treated at the wastewater treatment facility. There shall be a minimum monthly user charge rate which shall equal the existing user charge rate for one thousand (1,000) gallons as set forth in appendix A available at county clerk's office.
4. Operation, Maintenance And Replacement Cost Accounting Procedures: Operation, maintenance and replacement cost accounting procedures must incorporate a line item budget including the following categories:
a. Salaries and wages;
b. Indirect salary and wage costs;
c. Contractual services;
d. Materials and supplies;
e. Utilities;
f. Equipment replacement;
g. Administrative expenses; and
h. The cost required to achieve and maintain compliance with discharge permits.
5. Revenue From Treatment Related Byproducts: Revenue generated through sale or use of treatment related byproducts shall be credited to OM&R expenses.
6. Tap Fee: The utilities department shall charge a user an amount equal to the cost of the department's labor, equipment and materials whenever it is necessary for the department to perform the actual tap into an existing sewer main.
D. The sewer fee schedule shall be established by the utilities department and enacted as a resolution of the board and thereafter incorporated as appendix A, available at county clerk's office. The fee schedule shall contain the number of sewer system users, the amount of sewer system OM&R expenses and the sewer system capitalization requirements as well as the amount to be exacted by the utilities department for each charge and fee. After receipt of the prior year's audit report, the utilities department shall annually mail to each user a copy of the sewer fee schedule.
E. Every year the board shall review the contribution of users and the total cost of the operation, maintenance and replacement expenses of the sewer system. If necessary the board shall revise the user charge rate and the capitalization charge to accomplish the following:
1. Maintain the proportionate distribution of operation and maintenance costs among the users and user classes in proportion to the demand each user places on the sewer system and treatment works.
2. Generate sufficient revenue to pay the total operation and maintenance costs necessary for the proper operation and maintenance of the treatment works, including necessary equipment replacement.
3. Apply excess funds in the user charge system to the costs of operation and maintenance for the next year and adjust the rate accordingly.
4. Maintain a positive balance in the capitalization system sufficient to meet anticipated future needs and to retire existing debt. (TH Ord. 132A § 19, 1991)