For the purpose of providing for the cost of the management, maintenance, operation, and repair of the sewerage system and sewage pumping, treatment, and disposal works and for the enlargement or replacement of the system and works, and for the construction and reconstruction of main and interceptor sewers and the payment of interest on any debt incurred for the construction thereof, there is hereby levied and assessed upon each lot or parcel of land in the village a sewer rental charge as hereinafter provided.
(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 the estimated operation and maintenance costs, the estimated debt service costs, and 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) Monthly user charge (UC). The monthly sanitary sewer rental charge shall be calculated on the volume of wastewater discharged directly or indirectly into the sewage system and shall be measured by the water used by each sewer user as shown by the water meter readings. The sanitary sewer service charge shall consist of the sum of the operation, maintenance, and replacement charge, the debt service charge, and the sewer surcharge rate (if applicable) calculated as follows.
(1) Operation, maintenance, and replacement charge (OMR). A proportionate monthly rate for the operation, maintenance, and replacement of the sewage disposal system based on metered water used per month, shall be charged to all users based upon the following formula:
OMR = (A/Q) x M
Where A = Total monthly operation, maintenance, and replacement costs for the wastewater treatment plant and collection system.
Q = Total number of metered gallons of water sold to users connected to the sanitary sewer system.
M = Monthly metered water usage per user. There shall be a minimum charge per month per user of 1,000 gallons usage, regardless of actual consumption.
(2) Debt service charge rate (DSC). The debt retirement monthly rate per user for repayment of all capital costs associated with the construction of the sewage disposal system shall be charged to all users of the sanitary sewer system as a flat rate based upon the following formula:
DSC = B/(users x 12 months/year)
Where B = Total amortized annual debt service payments for all original construction of the sewage disposal system.
Users = Total number of users in the system.
(3) Sewage surcharge rate (SSR).
(a) Industrial wastewater into the public sewers as determined by this subchapter shall be subject to surcharges determined monthly on the basis of the following formula:
P = (A) x BOD + (B) x SS
Where P = Monthly surcharge
BOD = Pounds of biochemical oxygen demand per month in excess of 300 mg/l concentration in the wastewater.
SS = Pounds of suspended solids per month in excess of 300 mg/l concentration.
(b) In the above formula, A and B refer to the total expenditures per pound of BOD and suspended solids, respectively, to collect, convey, and treat the wastewater as annually determined and set by ordinance by the village.
(c) In summary, the monthly user charge shall be calculated as follows:
UC = OMR + DSC + SSR
1. The sewer charge herein assessed shall be in addition to the charge made for water used.
2. Where a private water supply is used, the sewer rental charge may be calculated by requiring the property owner to meter the private water supply, such metering to be at the property owner’s expense and such measurement to be used in the same manner as a public water meter in determining the charge. The Board may, at its option, in lieu of such metering, apply the minimum sewer charge to such premises. Each residence or separate commercial or industrial establishment shall be subject to a separate sewer rental charge even though such establishment may be served by a sewer connection common to other premises. If it be found by the Board that the water or waste measured or metered for any customer is greater than that actually being discharged directly or indirectly into the sewage system, the Board may modify and adjust such volume in accordance with the facts and with justice and equity, but no charge less than the minimum shall be made for any customer subject to the sewer charge.
3. 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 users. No one, including the Authority, shall subsidize the cost of operating, maintaining, or replacement of the sewage disposal system.
(C) Annual review of user charges.
(1) Pursuant to U.S. EPA regulations, the user charges shall be reviewed annually to accomplish the following purposes:
(a) To maintain the proportionate distribution of operation, 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 Village Council on or before July 1 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 1 of the next year. At the time recommended in the report, the village 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 Village Council to increase or decrease rates on January 1 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 final costs.
(4) The village shall notify all users annually what portion of the rates are for operation, maintenance, and replacement costs.
(Ord. 1121, passed 11-18-1997)