(A) There shall be established the following funds into which the water charges, as levied herein, shall be distributed.
(1) Water System Operations, Maintenance and Capital Outlay Fund. The Water System Operations, Maintenance and Capital Outlay Fund shall be used exclusively for debt service, operational expenses and equipment replacement expenses associated with the provision of water system services.
(2) Renewal and Replacement Fund. The Water System Renewal and Replacement Fund shall be used as follows:
(a) To fund any budget shortages in the Water System Operations, Maintenance and Capital Outlay Fund; and
(b) Funds collected in the Renewal and Replacement Fund in excess of 1.25 times the annual system debt service and operation and maintenance costs shall be utilized within the system as deemed appropriate by the Council on recommendation by the Town Manager and the Department.
(3) Water System Users Deposit Fund. The water system users’ deposits shall be utilized exclusively for the purpose of temporarily paying a customer’s delinquent fees.
(B) The distribution of water charges shall be as follows.
(1) Water system capacity charges. All water system capacity fees (connection fees) will be deposited in the Renewal and Replacement Fund.
(2) Water system user charges and tap fees. Water user fees shall be allocated to the Water System Operations and Capital Outlay Fund.
(3) Water system user deposits. One hundred percent of the Water User Deposit Fund shall be used to assure payment of monthly users fees by customer, as follows.
(a) If a customer is delinquent (see § 50.34 of this chapter) in paying their monthly user fee, then the Department may utilize a portion of that user’s deposit to bring the account current.
(b) The customer will be considered delinquent until the deposit is returned to the full amount.
(c) If a customer in good standing is disconnected and/or sells his or her property, the total amount of the deposit will be refunded upon written request.
(4) Special assessments.
(a) Special assessments shall be utilized in accordance with the agreement between the Water Department and the customer.
(b) Additional connection applications may not be accepted after the plant reaches “calculated design capacity” without review and approval by the Department confirming that actual maximum measured demand does not exceed design capacity.
(Prior Code, § 17-2-2) (Res. 01-06, passed - -2001; Ord. 09-36, passed - -2009)