The rates for water service are hereby established as follows.
(A) Ready to serve charge. Ready to serve charge shall be equal to the residential equivalent unit times the residential equivalent unit factor for a water user.
(B) Residential equivalent unit factor. Residential equivalent unit factor shall be based upon the water user’s water meter size as follows:
Meter Size | REU Factor |
5/8-inch | 1 |
1-inch | 1.67 |
1-1/2 inch | 3.33 |
2-inch | 5.33 |
3-inch | 10.67 |
4-inch | 16.67 |
(C) Calculation. Residential equivalent unit charge shall be calculated based upon the total water system operation and maintenance expenses, including labor and benefit expenses, divided by the total REUs serviced by the township water system.
(D) Water commodity charge. The water commodity charge shall be calculated based upon the water commodity charge paid by the township to the City of Saginaw (based upon 1,000 gallon units of water) and the City of Saginaw ready to serve charge (based upon 1,000 gallon units of water).
(E) REU capital improvement charge. REU capital improvement charge shall be calculated based upon the combined annual budgeted capital improvement expenses of the township water system divided by the total residential equivalent units serviced by the township water system.
(F) Water rate. The water rate shall be calculated on a monthly or quarterly basis and shall include the following charges:
(1) Ready to serve charge, based upon user’s REU factor;
(2) Capital improvement charge based upon user’s REU factor; and
(3) Water commodity charge based upon units of water as metered to the user (unit of water equals 1,000 gallons).
(G) Current water rates; adjustment. The current water rates shall be established and adjusted from time to time by resolution of the Township Board.
(H) Township charges. The township shall pay for all water used by it at the foregoing rates, except that for fire hydrant service, the charge shall be a hydrant fee each year for each hydrant in the township. Charges against the township shall be payable in quarterly installments from any township funds not earmarked for other purposes or from the proceeds of taxes which the township, within constitutional limits, is hereby authorized to levy within the system in an amount sufficient for that purpose. The hydrant fee shall be established and adjusted from time to time by resolution of the Township Board.
(I) Rate revisions authorized. The rates hereinbefore established are estimated to be sufficient to provide for the payment of the expenses of administration and operation of the system and such expenses for the maintenance thereof as may be necessary to preserve the same in good repair and working order; and to provide for such other expenditures and funds for the system as are required by this provision. Rates shall be fixed and revised from time to time by township resolution so as to produce the foregoing amounts, and the township covenants and agrees to maintain at all times such rates for services furnished by the system as shall be sufficient to provide for the foregoing.
(J) Estimated water use. Water consumption charges will be based on an actual reading. The township, however, reserves the right to estimate water usage if the meters cannot be read.
(Ord. 10-09-84, passed 8-20-2019)