7-2-6-1: CHARGES:
The following rate structure for the use and service of the wastewater disposal system of the city of Moorhead are hereby established. Charges shall be made against such lot, parcel of land or premises which may have a sewer connection in the sanitary sewer system in the city or which may otherwise discharge sewage or waste, either directly or indirectly into the sewer system or any part thereof, and such charges shall be established by the council.
   A.   Part 1; Basis For Wastewater Service Charges: The wastewater service charge for the use of and for service supplied by the wastewater facilities of the city shall consist of a charge for operation and maintenance plus replacement and a debt service charge.
      1.   Wastewater Cost Of Service: The costs of providing wastewater services to each customer category shall be computed as follows:
         a.   Estimate the projected annual revenue required to operate and maintain the wastewater facilities including a replacement fund for the year.
         b.   Allocate the projected annual revenue to functional cost components such as customer and volume/load related components which may include, but not be limited to, volume, BOD5, and TSS components.
         c.   Estimate wastewater units of service to be provided such as customer and volume/load related units of service, which may include, but not be limited to, volume, BOD5, and TSS units of service. Units of service associated with BOD5, TSS, and any other load related parameters exceeding the base concentration established by the council must be computed separately from units of service at or below the base concentrations established for these parameters.
         d.   Determine a unit cost of service for each functional cost component. The unit cost of service is determined by dividing the allocated costs from step b by the respective units of service from step c.
         e.   Determine the total cost of service for each customer category by multiplying the appropriate unit costs of service from step d by the units of service applicable to each customer category from step c.
         f.   Repeat steps a through e for computation of the cost of service due to the debt service.
      2.   Wastewater Treatment Charge: The charge shall be based on the actual quantity of wastewater discharged, or a reasonable estimate thereof, which may utilize, but not be limited to, information obtained from water usage as recorded by water meters and/or wastewater meters and results from routine monitoring for BOD5, TSS and other applicable parameters.
         a.   It shall consist of an operation and maintenance plus replacement rate and shall be computed by dividing the appropriate costs of service by the billable units of service for each customer category, as determined in subsection A1 of this section, as follows:
            (1)   A customer charge is determined by dividing all customer related costs of service by the number of customers in each customer category.
            (2)   A volume charge is determined by dividing the sum of volume related costs of service and load related costs of service associated with concentrations at or below the base concentration established by the council for BOD5, TSS, and/or other applicable parameters, by the billable volume for each customer category.
            (3)   Surcharges for wastewaters exceeding the base concentrations established by the council for BOD5, TSS, and any other applicable load related parameter are determined by dividing the sum of the appropriate load related costs of service by the billable load related units of service associated with concentrations exceeding the base concentration.
         b.   The debt service rate will be computed using the same procedure described for the operations and maintenance plus replacement charge in subsection A2a of this section.
         c.   The total rate will be the sum of the operations and maintenance plus replacement rate and the debt service rate.
   B.   Part 2; Wastewater Treatment Charge: The wastewater treatment charge shall consist of operation, maintenance, replacement and debt charges and shall be applied as given below:
      1.   Residential Use: A customer charge plus volume charge shall be applied to every single-family dwelling.
      2.   Multiple-Family Dwellings: A volume charge shall be applied to every metered multiple-family dwelling consisting of two (2) or more family units including trailer parks.
      3.   Multiple-Family Tenants: A customer charge shall be applied to each single-family unit within a multiple-family dwelling including manufactured homes in trailer parks.
      4.   Commercial Use: A customer charge plus volume charge shall be applied to every metered commercial building, including, but not limited to, metered nonresidential, nonmultiple- family, and nonindustrial businesses, schools, parks, government, and public customers.
      5.   Industrial Use: A customer charge, volume charge, and appropriate surcharges in accordance with subsection A2 of this section shall be applied to every industrial customer in accordance with subsection 7-2-6J of this chapter. (Ord. 2000-12, 9-5-2000)