§ 50.20 PAYMENT IN LIEU OF TAXES FOR OUTSIDE TERRITORY CUSTOMERS.

   (A)   Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.

      EQUIVALENT DWELLING UNIT ("EDU"). The equivalent of a single-family residential dwelling unit calculated as follows:

         Annual flow for the most recent 12 month period (in gallons)    xxx
         Divided by days of the year                ÷365   =   xx

         Daily Flow                         xx
         Divided by single family residential daily flow          ÷310   =   x

         EDUs                           x

      OUTSIDE TERRITORY CUSTOMERS. Those properties and premises that are connected to and served by the Damon Run System but are located outside of its service territory. The term includes all properties and premises that are currently connected to the system or that are connected in the future.

   (B)   Payment in lieu of taxes (PILOT). There is established a monthly PILOT applicable to the outside territory customers in the amount as presented on Exhibit A of Ord. 26-2019 to be adjusted annually for the "true-up" defined below. The number of EDUs applicable to each outside territory customer shall be determined according to the terms of such customer's service agreement as defined above. The amount of the PILOT shall be "trued-up" or adjusted each year to ensure that the outside territory customers are paying an amount consistent with the service agreements and the ongoing needs of Damon Run.

   (C)   Existing rates and charges. This section is only intended to establish PILOTs for Damon Run's outside territory customers. Unless specifically amended by this section, all other city water rates, charges, and provisions related thereto shall remain in full force and effect.

   (D)   Classification of rates and charges. The PILOTs set forth herein will not be imposed based on whether the customer in question is inside or outside the city limits, but rather will be based on whether the customer will be served by the distinct and separate Damon Run water facilities. Other than the outside territory customers, the city and VCU do not collect PILOTs from any other customers.

(Ord. 26-2019, passed 10-28-19)