(a) Deficit Prohibited. As part of the annual review provided herein, the Authority or other representative shall make an estimate of the revenues and expenses for the next year. After deducting:
(1) The estimated operation and maintenance costs,
(2) The estimated debt service costs, and
(3) The repair and replacement reserve payment from the total estimated revenues and net carryover from the previous year, the system shall maintain a positive working capital.
(b) Use of Revenue. The funds received from the collection of the rates and charges provided in this regulation shall be deposited as received by the Authority into a separate fund designated the “New Lexington Sewer Fund.” Disbursements from the fund may be made for operation and maintenance costs, debt service costs, and payments to the “Repair and Replacement Fund”, as well as payments to the Capital Improvements Fund used for enlargement of the collection, treatment and disposal capacity of the system. The City Treasurer of the Authority shall separately invest the funds of the system and pay an investment earnings to the “New Lexington Sewer Fund”, the “New Lexington Repair and Replacement Fund” or the “New Lexington Capital Improvements Fund.”
(c) Free Service Prohibited. Service will be provided to the users of the system in accordance with the terms of this regulation. No user shall be provided service without payment of sewer service charges in proportion to the service available to such user. No one, including the Authority, shall subsidize the cost of operating, maintaining or replacement of the sewage disposal system.
(d) Base User Charge. Charges for wastewater services shall be determined in accordance with the terms of this regulation and shall not be provided without charge to any users. User charges shall be determined on the basis of water use on a cost per 1,000 gallons used monthly (see Section 921.09
). User charge rates will be proportionate to the sewage disposal system operation, maintenance and replacement costs incurred plus a charge to recover the proportionate share of capital costs for sewage treatment plant improvements. The sewer service charge shall consist of the sum of the Operation, Maintenance and Replacement Rate, and the Debt Capital Improvements Rate calculated as follows:
(1) Operation, maintenance and replacement rate (OMR). A proportionate rate for the operation, maintenance and replacement of the sewage disposal system shall be charged to all users based upon the following formula:
OMR= A/V
Where A = Total annual operation, maintenance and replacement costs for the wastewater treatment plant and collection system.
V = Total metered volume of water used per year on the system for those customers on both the water and sewer system in 1,000 gallon increments.
(2) Debt/capital improvements charge (DCIC) . The proportionate rate for repayment of all local share capital costs associated with the construction of the sewage improvements shall be charged to all users based upon the following formula:
DCIC = B
V
Where B = Total amortized annual debt/capital improvements costs.
V = Total metered volume of water used per year on the system for those customers on both the water and sewer system in 1,000 gallon increments.
(e) Determination of Charges. The monthly sewer service charge for each user shall be calculated by multiplying the currently adopted User Charge and Debt/Capital Improvements Charge determined under subsection (d) by the actual water meter reading in 1,000 gallon increments.
(f) Annual Review of User Charges.
(1) The user charges shall be reviewed annually to accomplish the following purposes:
A. To maintain the proportionate distribution of operation and maintenance and replacement costs among users and user classes; and
B. To generate sufficient revenue to pay the total operation, maintenance, replacement, capital and working capital costs of the sewage disposal system.
(2) The annual review of the user charges shall be conducted by the Authority or by a consulting engineer. A written report shall be prepared and submitted to the New Lexington City Council on or before July 1st of each year. The report shall summarize actual operations for the year just ended and, based upon at least two years’ projections (the current year and the next year), shall recommend a rate increase or decrease effective January 1st of the next year. At the time recommended in the report, the City shall, by appropriate ordinance, set the schedule of rates and charges for the users of the system.
(3) In addition to the authority of the City Council to increase or decrease rates on January 1st of each year, the Council may, at any time, increase or decrease rates if the Council determines a modification of the rates is required in order to comply with this regulation, any revenue bond resolution, or to adjust rates to reflect updated costs.
(4) Following the annual review, the Authority shall promptly notify each user, in conjunction with a regular bill, of the rate adjustments, if any, and that portion of the sewer service charge which is attributable to operation, maintenance and replacement costs of the system.
(g) Billing Procedures.
(1) The sewer service charges established by this regulation shall be billed after the service is rendered. The Authority shall bill for sewer service by the first day of the month.
(2) Bills shall be mailed to the owner of the property at the mailing address of the property serviced unless the owner shall, in writing, request the bill be sent to a different mailing address of the owner. Except as provided below, bills shall not be sent to a lessee of the property. In the case where the land is separately owned from the building, the bill shall be sent to the mailing address of the owner of the building.
(3) After the effective date of this regulation, the bill may continue to be sent to the mailing address for a lessee until one of the following occurs:
A. The lessee moves out of the building; or
B. The lessee is delinquent twice within a calendar year.
Upon the occurrence of subsection (g)(3)A. or B. hereof, the bill shall be sent to the mailing address of the owner of the property without exception.
(h) Changes of Address or Ownership.
(1) Upon the change of his or her mailing address, an owner of a property served by the sewage disposal system shall inform the Authority, in writing, of the change. Failure to inform the Authority of a change of address shall not excuse an owner from any payment penalties incurred because of the failure to report an address change.
(2) Prior to the sale of a property, the present owner shall contact the Authority to arrange for pro-ration of the final bill. The final bill shall be sent to the mailing address specified by the present owner. Failure of a previous owner to comply with this part shall not excuse the new owner from responsibility for any and all delinquencies certified pursuant to the Ohio Revised Code, current charges or penalties remaining unpaid by the previous owner.
(3) Prior to the sale of a property, the purchaser shall contact the Authority to arrange for a pro-ration of the first bill and to inform the Authority of the mailing address of the new owner. Failure to comply with this part shall not excuse the new owner from responsibility for any and all delinquencies certified pursuant to the Ohio Revised Code, current charges or penalties remaining unpaid by the previous owner.
(i) Payments and Penalties.
(1) The sewer service charge bill shall be due by the 15th day of each month. If the 15th day of the month falls on a Sunday or holiday, the sewer service charge bill shall be due the following business day (including Saturday).
(2) Checks and money orders shall be payable to the City of New Lexington.
(3) Payments sent by mail and postmarked by the 16th day of the month will be accepted without the imposition of a payment penalty. If the 16th day of the month falls on a Sunday or holiday, the payment sent by mail must be postmarked no later than the following business day (including Saturday).
(4) Payments received or postmarked after the 16th day of the month or the first business day thereafter (including Saturday) shall be subject to a payment penalty of ten (10) percent of the original amount billed.
(5) A bill that remains unpaid for sixty (60) days after its due date will be subject to a second payment penalty of ten (10) percent of the original amount billed.
(6) If a bank should return a check for insufficient funds, an account will be subject to an insufficient funds charge of ten (10) dollars and require the overdue amount to be paid in cash.
(7) Upon the claim of a person that the return of a check for insufficient funds was a bank error, the Authority may waive an insufficient funds charge and/or accept payment by check if the bank supplies adequate documentation of its error.
(8) Generally, a person should contact the Authority if he or she fails to receive a bill by the 5th day of each month. Upon a claim of a person that a bill was not received:
A. If the records of the Authority show the bill was duly mailed to the last reported mailing address, the person shall be responsible for timely payment of the bill.
B. If the records of the Authority show the bill was not duly mailed to the last reported mailing address, the Authority may either:
1. Issue a bill due ten (10) days from the date of mailing; or
2. Add the unpaid charge to the following month's bill without a penalty.
(9) In utilizing the U.S. Postal Service for delivery of their payment of a sewer service charge, users assume responsibility for any failure of the U.S. Postal Service to deliver the payment to the Authority. Accordingly the Authority shall not waive payment penalties for any person claiming that the U.S. Postal Service failed to deliver a payment.
(j) Delinquencies. Any unpaid billings, together with accrued penalties, shall be annually certified to the County Auditor, pursuant to the Ohio Revised Code, who shall place such delinquencies upon the real property tax duplicate for the property receiving sewage service. Such delinquencies shall be a lien upon the property from the date the delinquency is placed upon the real property tax duplicate and shall be collected in the same manner as other real estate taxes. Failure to pay delinquencies certified may result in a foreclosure of the property by the County Prosecutor. This part shall be in addition to all other collection remedies provided by law including an action in Small Claims Court.
(k) Other Charges by Agreement. The Authority may, in special cases, establish additional charges for wastes of unusual strength or composition which are accepted for treatment.
(l) Disconnection or Reconnection.
(1) A user who certifies his or her building is not habitable may request the Authority to disconnect a building from the sewage disposal system. Upon such request, the Authority shall remove or close the water supply line.
(2) Thereafter, the owner of the premises shall not allow the building to be utilized for human occupancy as a residence or place of employment and the Authority shall not bill for sewer service.
(3) Violation of subsection (l)(2) hereof will subject the owner to the mandatory connection provisions of this regulation and Ohio law.
(4) A person or subsequent owner of a property disconnected who disconnects from the sewage disposal system may later request to be reconnected. Upon approval by the Authority, the Authority shall reopen the water line.
(5) The charge for disconnection or reconnection shall be $25.00 paid to the Authority before performance of the work.
(Ord. 92-23. Passed 10-5-92.)