Pursuant to the provisions of 40 CFR 35.2140, the user charges shall be reviewed annually to accomplish the following purposes:
(a) To maintain the proportionate distribution of operation and maintenance costs among users and user classes;
(b) To generate sufficient revenue to pay the total operation and maintenance, including replacement of the treatment works; and
(c) To apply excess revenue collected from a class of users to the costs of operation and maintenance attributable to that class for the next year and adjust the rates accordingly.
Such review shall be done by the Service Director and Finance Director using generally accepted accounting principles. Following such annual review, a written report shall be prepared and submitted to Council. The annual date for review shall be June 1st of each year. If rates are to be adjusted, they shall be effective after each review on January 1st in the year immediately proceeding. As part of the review process, the written report shall be submitted to Council containing the basis upon which the Service Director and Finance Director recommend adjustment of the rates established by this chapter and shall further contain the recommendation of the Finance Director and Service Director concerning increase or decrease in the rates.
This annual review shall be further documented by the annual report of the Finance Director and Service Director being placed into the minutes of the Council of the City at a regularly scheduled meeting. Council shall thereafter review such recommendations and appropriate legislation to adjust the user charges.
It shall be the policy of the City to pay the capital costs, consisting of principal and interest on indebtedness to construct the wastewater treatment plant through general tax revenue moneys until such time as the payments become economically unfeasible. The feasibility of the payments shall be determined by the Finance Director.
Following the annual review, in conjunction with a regular bill, each user shall be notified of the rate adjustments and that portion of the sewer service charge which is attributable to OM&R costs of wastewater treatment services.
(Ord. 84-91. Passed 10-16-84.)