(A) Purpose and policy.
(1) This section sets forth uniform requirements for financing capital improvements to the water and sewer systems to serve growth and at the same time prevent or reduce the inequity to existing customers that would result when the existing customers must pay for the increases in water or sewer rates that are needed to pay for added plant costs for new customers.
(2) The method chosen to establish the system development charge is based on the premise that new customers are entitled to water and/or sewer services at the same rates charged to existing customers. However, it is also recognized that existing customers have provided funds for debt retirement, cash financing of improvements and additions to the water and/or sewer system through payment of water/sewer rates or through their own contribution of capital. New connections to the system shall be required to pay an amount corresponding to that which has already been paid by existing customers towards the water and sewer facilities.
(B) Definitions. For purposes of this section, the following definitions shall apply, unless the context clearly requires a different meaning.
“COMMISSION.” The Shelbyville Municipal Water and Sewer Commission.
“SDC: SYSTEM DEVELOPMENT CHARGE.” The charge for a new water and/or sewer connection which corresponds to that amount which has already been paid by existing customers towards the invested capital funds of the system.
“SEWER INSPECTION FEE.” That fee established by ordinance to recover costs of inspection of new sewer service connections and to obtain a sewer use permit.
“SEWER TAP FEE.” That fee established by ordinance to assist in covering cost with future debt service requirements for future expansion of wastewater facilities.
“WATER METER FEE.” That fee established by ordinance to recover costs of setting new water services, inclusive of the metering device.
(C) Method of establishing the system development charges. The system buy-in method utilizes the calculations of existing customer's equity based on:
(1) Present value of assets;
(2) Outstanding indebtedness;
(3) Depreciation;
(4) Existing plant capacity and current usage; and
(5) Present worth of the system development charge;
to arrive at customer equity in terms of one thousand (1,000) gallons per month of water and/or sewer usage.
(D) System development charges.
(1) The following charges are hereby adopted for new connections to the Water and Sewer System of the Commission:
(a) Sewer System (effective May 1, 2010):
(i) Residential Single Family
Inside city $918.00
Outside city $1,055.69
(ii) Apartments, Duplexes (per unit)
Inside city $628.29
Outside city $722.53
(iii) Industrial/Commercial/Other
Inside city $223.75/1,000 gal./mo.
Outside city $257.31/1,000 gal./mo.
(b) Water System (effective May 1, 2010):
(i) Residential Single Family
Inside city $517.50
Outside city $595.13
(ii) Apartments, Duplexes (per unit)
Inside city $354.09
Outside city $407.20
(iii) Industrial/Commercial/Other
Inside city $100.88/1,000 gal./mo.
Outside city $116.01/1,000 gal./mo.
(2) Water districts may be required to pay a SDC at the time of contract renegotiations and shall apply towards the increase in contract amount of water purchased.
(3) Any increase in water or sewer use by commercial, industrial, or other similar users, which exceeds the prior annual average by fifty percent (50%) or more, shall subject the user to the system development charges set out above.
(4) Revenue collected from the system development charge shall be deposited in a special account known as the “Water/Wastewater Facilities Expansion Account”.
(5) In addition to the system development charges set out above, new connections shall be subject to fees for permit applications and inspections as adopted by the Commission pursuant to § 52.106.
(6) The following charges are hereby adopted for new connections to the Sewer System of the Commission. The fee will be addition to the system development charge (SDC).
(a) Residential Single Family
Inside city $2,000
Outside city $2,300
(b) Apartments/Duplexes (per unit)
Inside city $1,365
Outside city $1,570
(c) Industrial/Commercial/Other
Inside city $487/1,000 gallon/month
Outside city $560/1,000 gallon/month
(E) Other charges/fees.
(1) Meter setting charges. In addition to the system development charge for new water connections set out above, new connections shall be subject to the following meter setting fees:
5/8-inch meter inside city $815
5/8-inch meter outside city $890
1-inch meter inside city $915
1-inch meter outside city $990
(2) The above charges for meter setting include materials, labor, and installation costs for installing the meter at the property line not more than sixty (60) feet from the water main. Installation of water meters at the property line which exceeds sixty (60) feet from the water main shall require payment of the meter setting fee above, plus the cost of labor and materials in excess of sixty (60) feet. Requesting parties in all installations, including those within sixty (60) feet of the water main, shall pay for any expense of rock removal. Meter setting fees for meters greater than one (1) inch shall be based on the costs of materials, labor, and installation of the meter plus fifteen percent (15%).
(3) New customer turn-on/processing fees, disconnect fees, and sewer inspection fees.
(a) (i) New/changed customer account turn-on/
processing charge $25
(ii) After-hours [4:30 p.m. Monday through
Friday & weekends] service calls/turn-ons $60
(iii) Non-payment/disconnect turn-on fees:
During working hours $25
After hours $60
(iv) Sewer inspection fees $50/lateral
(v) There is hereby established a $10 fee of any payment attempt made with “insufficient funds”, whether through check(s) or ACH payments.
(b) The Board of Commissioners shall amend rates and fees as described in paragraph (3)(a)(i) through (iv) above from time to time at its discretion, as well as meter setting fees.
(F) Payment of fees/charges.
(1) No person shall begin construction on a development, and no building permit or occupancy shall be issued until all fees and/or charges have been paid and applicable permits issued.
(2) If the proposed development does not occur within one hundred twenty (120) days of application, the charge may be refunded with Commission approval.
(3) In the case of the SDC for an industrial, commercial, or other than residential, duplexes or apartments, the initial SDC that was collected will be adjusted upward or downward after twelve (12) months of operation. Based on the average usage of the last three (3) months (of the twelve (12) month period) average usage.
(4) All charges and/or fees established by this section shall be applicable to those users applying for connections as of the effective date of the section.
(5) At the end or each calendar year and no later than the January 15, system development charges shall be reviewed by the Commission and adjusted as necessary with the approval of the City Council. At the same time the cost of new meter settings (5/8-inch and 1-inch) shall be reviewed. Meter setting costs are determined by actual costs on a calendar-year basis.
(Ord. 88-03-02, passed 3-29-89; Am. Ord. 96-03-07(B), passed 3-21-96; Am. Ord. 2000-01-20, passed 1-20-2000; Am. Ord. 2001-03-01, passed 3-1-01; Am. Ord. 2002-12-05(A), passed 12-05-02; Am. Ord. 2003-03-06, passed 3-6-03; Am. Ord. 2004-06-03, passed 6-3-04; Am. Ord. 2005-06-16, passed 6-16-05; Am. Ord. 2007-06-21(B), passed 6-21-07; Am. Ord. 2008-12-04, passed 12-4-08; Am. Ord. 2010-04-15(A), passed 4-15-10; Am. Ord. 2011-02-03, passed 2-3-11; Am. Ord. 2012-12-20, passed 12-20-12; Am. Ord. 2014-12-18, passed 12-18-14; Am. Ord. 2015-07-02, passed 7-2-15; Am. Ord. 2016-12-15, passed 12-15-16; Am. Ord. 2018-12-06, passed 12-06-18; Am. Ord. 2020-03-05, passed 3-5-20; Am. Ord. 2021-03-18, passed 3-18-21)