(A) Establishment of cost of service. The Village Council has determined that the purpose of sewer rates is to produce sufficient revenues each year to pay the costs of service. The costs of service to be paid from revenues shall include all of the following:
(1) Operation and maintenance expenses;
(2) Debt service expenses; and
(3) Capital expenses not funded from bonded indebtedness.
(a) The rates to be charged for sewer service furnished by the Sewage Disposal System shall be made against each lot, parcel of land or premises having any connection with the Sewage Disposal System.
(b) The village shall periodically review rates, fees, rules and regulations of the Sewage Disposal System. The review shall be completed not less than one time per fiscal year. The review will define actual expenses associated with the operation, maintenance and administration of the Sewage Disposal System, as well as debt service requirements and repair and replacement costs. Results of the review shall be reported to the Village Council with recommendations for any adjustments.
(B) Allocation of cost of service; user classification. The Village Council has determined that not all classes of users of the Sewage Disposal System cause the same costs of service. Based on independent investigation and on the advice of the village's independent engineering consultants, the Village Council has previously found and currently reaffirms that:
(1) The commodity costs of sewer service for users of the Sewage Disposal System located within the village are uniform among users in accordance with the volume of use; provided, however, that in certain cases where the character of the sewage from a particular source is such that unreasonable additional burden is placed on the Sewage Disposal Systems, the additional cost of treatment created thereby requires an additional surcharge above the rates normally charged for the service;
(2) Certain indirect costs of providing sewer service vary according to the size of meters employed;
(3) Users taking possession of previously undeveloped properties, and users changing the nature and amount of use of the Sewage Disposal System at renovated or expanded properties would not bear their proportionate share of the cost of capital improvements to the Sewage Disposal System unless required to pay a capital connection fee.;
(4) Certain types of property use require a reservation of a greater capacity of the Sewage Disposal System than others. The Village Council has therefore developed the following classification of users, which the Village Council finds is the most fair and accurate means of apportioning the indirect costs of providing service among different classes of users for purposes of calculating the readiness-to-serve charge and determining the relative demand on capacity of the Sewage Disposal System among different classes of users for purposes of calculating the capital connection fee;
(5) For meters of the following sizes, the following meter equivalency ratios shall be used for purposes of allocating the amount of the indirect costs of service and determining the relative demand on capacity of the Sewage Disposal System per meter size:
Meter Size (Inches) | AWWA |
Meter Capacity Ratio | |
Meter Size (Inches) | AWWA |
Meter Capacity Ratio | |
5/8 and 3/4 | 1 |
1 | 2.5 |
1-1/2 | 5 |
2 | 8 |
3 | 17.5 |
4 | 30 |
6 | 62.5 |
(6) Un-metered single-family residential properties shall be assigned a meter capacity ratio of one for purposes of calculating the rates and charges prescribed by this subchapter.
(C) Specific rates and charges.
(1) Commodity charge. Every user of the Sewage Disposal System shall pay a commodity charge for all sewer and wastewater treatment services furnished by the Sewage Disposal System:
(a) Except as otherwise provided in this subchapter, commodity charges for all sewer and wastewater treatment services shall be calculated on the basis of metered gallons of water consumed (excluding water consumed for irrigation purposes as measured by a secondary irrigation meter installed in accordance with § 52.28(D)) at rates determined by resolution of the Village Council and which fairly apportion the variable costs of providing sewer and wastewater treatment services to users of the Sewage Disposal System.
(b) Single-family residential users not served by the village's Water Supply System and which have not elected to install a water meter in accordance with § 52.28(C) shall be assessed a commodity charge calculated based on an estimated a meter equivalency unit established by the village as determined by resolution of the Village Council and which the Village Council finds to be a fair and reasonable estimate of the variable costs of the sewer and wastewater treatment services provided by the Sewage Disposal System to the users.
(2) Readiness-to-serve charge. Every user shall pay a readiness-to-serve charge for sewer service on the basis of meter size in an amount and in the manner determined by resolution of the Village Council and which fairly apportions the fixed costs of providing sewer service for users of the sewage disposal system and may include periodic depreciation expenses to allocate the original cost of the system's assets over the life of those assets.
(3) Connection fee. Each user connecting or reconnecting to the Sewage Disposal System shall pay a connection fee equal to the actual cost of the material, labor, equipment and overhead related to the installation and inspection of the connection or re-connection, as determined by resolution of the Village Council.
(4) Capital connection fee. The Village Council may, by resolution, establish a capital connection fee to defray or recover the cost of capital improvements which are acquired and constructed for the primary purpose of providing additional capacity determined by the village to be reasonably necessary to accommodate:
(a) New connections to the Sewage Disposal System; or
(b) Modifications of existing connections for a use estimated to demand the reservation of greater capacity of the Sewage Disposal System than previously required. Every person seeking to connect previously unconnected property to the Sewage Disposal System, or to reconnect previously connected property to the Sewage Disposal System for a use estimated to demand the reservation of greater capacity of the Sewage Disposal System, may be required to pay a capital connection fee. A capital connection fee shall be established and managed as provided in this section.
1. Calculation of estimated demand on capacity. The estimated demand on capacity of a new connection to the Sewage Disposal System (or modification of an existing connection to the Sewage Disposal System) shall be based on the meter equivalency table set forth in division (B)(5) above.
2. Calculation of capital cost requirements. The capital costs to be defrayed or recovered through the imposition of the capital connection fee shall be determined annually by the village and shall be based on the estimated cost of capital improvements incurred or to be incurred for the primary purpose of providing additional capacity determined by the village to be reasonably necessary to accommodate new connections to the Sewage Disposal System or modifications of existing connections for a use estimated to demand the reservation of greater capacity of the Sewage Disposal System than previously required.
3. Credits. If the capital connection fee relates to an increase in demand on capacity, the village shall credit against the specific amount of the capital connection fee, the amount of any capital connection fee or similar charges previously paid for connection of that property to the Water Supply System.
(5) Sewer surcharges. The Village Council may, by resolution, establish surcharges for the actual cost of treatment of pollutant loadings not normally treated or in excess of those normally treated by the POTW, as described in § 52.25(F).
(6) Meter charge. Each user installing a water meter in accordance with § 52.28(B) and (C) or a secondary irrigation meter in accordance with § 52.28(D) shall pay the actual cost of the meter and components plus a 10% fee for administration and handling. The meter charge shall be in addition to the connection fee and other fees and charges prescribed by this subchapter.
(7) Debt service charge. The charge assessed to users of the system which is used to pay principal, interest, and administrative costs of retiring the debt incurred for the construction of the Sewage Disposal System, and construction of improvements of, and extensions to, the Sewage Disposal System.
(8) Equity buy-in. This fee may include a component that represents the capital equity share within the system as established prior to the new or expanded user's connection or a user's increased use of the system's capacity.
(9) Other fees. The Village Council may, by resolution, establish certain additional fees as may be required to carry out the purposes of this subchapter.
(D) Publication of rates. Following approval from time to time by the Village Council of rates and charges or revisions thereto for use of the Sewage Disposal System in accordance with this subchapter, the rates as approved by the Village Council shall be published once in a newspaper of general circulation in the village within 30 days of approval thereof.
(Ord. 68, passed 10-24-2005; Ord. 165, passed 10-24-2022)