§ 98-56. Rates generally.

All premises connected directly or indirectly to the system except as hereinafter provided, shall be charged and shall make payments to the city in amounts computed on the basis of this article.

(1)

The rates to be charged for water service furnished by the system shall be charged to all buildings or premises having any connection with the system. Irrigation accounts will be billed under the guidelines established by resolution of the city council.

(2)

No free water service shall be furnished to any person, public, or private, or to any public agency or institution.

(3)

The city council shall establish appropriate rates and fees to be charged for water service furnished by the system so as to adequately provide for ordained bond requirements and to preserve the financial soundness of the system. Said rates and fees shall be established by city council resolution based upon the recommendation of city staff or designated parties and shall be consistent with the findings set forth in section 98-31.1 of this article.

(4)

The city staff or designated parties shall periodically review rates, fees, rules and regulations of the system. Said review shall be completed not less than one time per fiscal year. The review will define actual expenses associated with the operation, maintenance, administration, bond retirement, reconstruction, and equipment replacement. Results of said review shall be reported to the city council with respective recommendations for any adjustments.

(5)

The city shall establish a customer service charge, as necessary to recover administrative costs related to generating utility bills. The administrative costs include meter reading, postage, printing, and labor for administrative and clerical personnel. An annual review of expenses will be conducted, and the service charge will be adjusted to fairly apportion these costs among all customers. Results of the said review shall be reported to the city council with respective recommendations for any adjustments.

(6)

All premises connecting to the system shall pay a connection fee as provided in section 98-57 herein.

(7)

If water service is discontinued for any reason, said service shall not be reinstated until the customer shall pay to the city all fees and charges owed and a turn-on fee, which shall be established in accordance with other sections of this article.

(8)

Except as herein otherwise provided, water to be furnished by the system to each premises connected to the system shall be measured by a meter or meters installed by the city system and shall be billed at the rate established by the city.

(9)

Users located outside the city's corporate limits receiving water from the system shall pay for such service at rates sufficient to cover their proportion of all applicable operation, maintenance and replacement costs in accordance with federal regulations as well as any additional indirect costs identified in section 98-31.1(8) above. Service to nonresident users shall only be provided if they comply with Council Policy Statement No. 32, or any amendments thereto. Rates and fees charged to nonresident users of the system shall be established by city council resolution and shall not exceed two times the corresponding rates and fees paid by resident users.

(10)

New rates shall be effective on all billing on or after the effective date of the new rates.

(11)

The charges, rates and fees for water service by the system are established herein to adequately provide for bond requirements and to ensure that the system does not operate at a deficit.

(Ord. No. 01-307, § 1, 4-2-01)