A capital improvements charge shall be levied on all users of the water treatment works to provide funds necessary to finance improvements to the water treatment plant deemed necessary by the Director from time to time. However capital improvements charges shall not be levied on inside City users so long as City income tax revenues are sufficient to meet project cost expenses and/or debt service expenses of improvements made to the plant. For project cost expenses and/or debt service expenses met entirely from City income tax revenues, outside City users shall reimburse the City income tax fund through either water charges levied over a debt retirement period or through a single, lump sum charge. The method used to establish a capital improvements charge based on a volume charge per 1,000 cubic feet or based on a single lump sum charge for water consumed from the water treatment works shall be defined in this section.
For each capital improvement financed through a Capital Improvements Charge or from the City income tax fund, a debt service expense schedule shall be established by the Service Director based on the total project cost expenses being financed by loans or by the sale of municipal bonds. The Capital Improvements Charge will include interest costs based on the interest rate(s) of the respective project loan(s). The interest rate to be charged on the amount that would have been financed if City income tax funds were not available shall be based on Moody's twenty municipal bond market index value on the date that bids were received for each improvement. The debt retirement period shall be twenty years or as otherwise established by the Service Director. The debt service expense schedule for each capital improvement project for the water treatment plant shall be kept on file in the Department of Public Service Office. The total project cost expenses shall equal the sum of all project related costs including but not limited to construction, financing, engineering and administrative related expenses. Debt service expenses shall be defined as the annual principal and interest payments necessary to retire the total project cost of the capital improvement.
The volume of water consumed or used by each user shall be subject to a capital improvements charge per 1,000 cubic feet, as follows:
(a) Charges for each billing period during a calendar year shall be based on the following values for that calendar year:
(1) The total project cost expenses and/or debt service expenses attributable to the water treatment plant; and
(2) The estimated total volume of water consumption of users tributary to the water treatment works subject to water charges.
(b) The capital improvements charge per 1,000 cubic feet shall equal: the total project cost expenses and/or debt service expenses pursuant to subsection (a)(1) hereof divided by the estimated total volume of water consumed pursuant to subsection (a)(2). Outside City users electing to reimburse the City income tax fund through a single lump sum payment shall be subject to a capital improvements charge, as follows:
(c) The charge shall be based on the following values for that calendar year:
(1) The total project cost expenses attributable to the water treatment plant;
(2) The estimated volume of water consumption of outside City users tributary to the water treatment works subject to water charges that elect to make a lump sum reimbursement of the City income tax fund; and
(3) The estimated total volume of water consumption of users tributary to the water treatment works subject to water charges.
(d) The lump sum capital improvements charge shall equal: the total project cost expenses pursuant to subsection (c)(1) hereof times the estimated volume of water consumption pursuant to subsection (c)(2) divided by the estimated total water consumption volume pursuant to subsection (c)(3).
Capital improvements charges pursuant to this section shall be billed pursuant to Chapter 935. The rates shall be established once all costs are known for the water treatment plant improvements project. The rates, once established, shall be reviewed biennially to reflect changing annual volume of water consumption of users tributary to the water treatment works, and to reflect loan adjustments or refinancing.
(Ord. 157-2017. Passed 12-11-17.)
(Ord. 157-2017. Passed 12-11-17.)