(a) There is hereby established a committee, comprised of the Mayor, the Treasurer and the Village Administrator, whose function shall be to review the user charges of the Water Pollution Control Department on an annual basis, in accordance with 40 CFR 35929-2B of the Federal Register. On or before January 31 of each year, the Auditor shall submit a report of all expenditures of the Water Pollution Control Department for the previous year to such committee and to Council. Thereafter on or before March 1 of each year, such committee shall calculate and compare the operation, maintenance and replacement costs of the Water Pollution Control Department for the immediately preceding year to those of the operation, maintenance and replacement costs of the second preceding year and adjust the user charges in accordance with the difference reflected between those comparative operation, maintenance and replacement cost figures. The purpose of this adjustment is to annually reflect in the user charges the actual costs for the operation, maintenance and replacement of the Water Pollution Control Department and/or any anticipated expenditures pertaining to the operation, maintenance and replacement costs proportionately among the Users of Water Pollution Control Department sewage system. The new rates as determined by this committee shall be submitted to Council for their review and passage at the first meeting of Council in the month of March of each year.
(b) For the purpose of providing revenue to help finance the construction, operation, maintenance, or improvements to the sewage treatment plant, sewer system, or pump stations, a sanitary sewer service charge shall be charged to the Users of the sewerage system of the Village. The funds received from the collection of the rates and charges shall be deposited daily in a separate fund designated Sewer Revenue Fund. The accounting system shall keep separate that portion of the monies collected for O M & R and those collected for debt service. Funds collected by the O M & R portion of the sewer service charge or user charges shall be used for the payment of the cost and expense of the operation, maintenance, repair, replacement and management of the system to maintain capacity and performance during the useful life of the treatment works. Enlargement, expansions and improvements to the system shall be considered betterments and as such shall be paid for with the funds collected from the debt service portion of the sewer service charges. Any excess in the O M & R portion of this fund shall be used to calculate any adjustment in the rate for user classes.
(c) All premises within the corporation limits of the Village shall pay a sewer service charge based upon the quantity of water used on the premises, unless specified otherwise.
(1) The sewer service rates shall be broken down as follows:
A. A portion will be established to cover the costs for the operation, maintenance and replacement of the treatment works.
B. A second portion will be established to cover cost of debt reduction and capital improvements.
(2) Rates will be approved by Council.
(3) The rates will be calculated from the itemized annual O M & R costs to provide sewage, including the costs for treatment, conveyance, and billing.
(4) The O M & R costs divided by the billable flow (that which can be accounted for), will determine the required user charge.
(5) Users will be notified once per year of what portion of the sewer service rates are attributed to O M & R.
(6) All revenue shall be deposited in the Sewer Revenue Fund.
(d) (1) Each sewer service charge levied is hereby made a lien upon the premises charged therewith, and if the same is not paid within thirty days after it shall be due and payable, it may be certified to the Auditor of Jefferson County, who shall place the same on the tax duplicate with the interest and penalties allowed by law and be collected as other municipal taxes are collected. The Village shall also have the right in the event of non-payment as aforesaid, to discontinue water service to such premises of water supplied by the Village’s water works system or disconnect the sewer at the Owner's expense until such unpaid sewer charges have been fully paid.
(2) In the case of leased lots, parcels of land or premises having a connection with the system, the lessor and lessee shall both be liable for the payment of the sewer charges and the Village may proceed to collect such charges from either the lessor or the lessee, or it may certify delinquent charges to the Auditor of Jefferson County as herein provided.
(Ord. 1987-65. Passed 11-12-87.)