§ 98-90. Findings

(a)

Wastewater. The city council has previously found, and currently reaffirms that the businesses, industries, governmental and charitable agencies and resident located in the city need to have wastewater collection and treatment services.

(b)

Necessity for wastewater services. The city council further has previously found, and currently reaffirms that the use of septic tanks, privies, privy vaults, cesspools, or similar private sewage disposal facilities, is deleterious to the health safety and welfare of the businesses, industries, governmental and charitable agencies, and residents of the city and that the health, safety and welfare of the businesses, industries, governmental and charitable agencies and residents is enhanced by the creation of a public wastewater system with wastewater treatment facilities and regulation by the city of pollutants and other harmful materials according to state and federal standards.

(c)

Method of measuring use. Based on advice of its administrative staff, the city council has previously found and currently affirms, that the most practical, cost effective and accurate method, given available technology, of measuring the use of the wastewater service provided by the system by any customer is by a meter or meters used to measure water usage installed and controlled by the city.

(d)

Continuation of service. The city council has previously found and, further currently reaffirms that, in order to provide and continue to provide for the safe and uninterrupted removal and treatment of sewage, pollutants and other harmful materials, it is necessary from time to time to install improvements, enlargements, extensions and repairs to the system's sewers and sewer service pipes.

(e)

Purpose of charges. The charges and fees for the use of and connection to the system are hereby established for the purpose of recovering the cost of construction, reconstruction, maintenance, repair, and operation of the system and to comply with federal and state clean water acts and related regulations, to provide for the payment principal of the interest on any bonds authorized to be issued as and when the same become due and payable, to create and interest redemption fund therefor and to provide a fund for reasonable and necessary improvements to the system. Such charges and fees shall be made against all customers of the system in a fair and equitable manner and based on the level of service provided.

(f)

Proportionality, fairness, and benefits of charges, rates and fees. The city council has previously found and further currently reaffirms that the fairest and most reasonable method of providing for the operation, maintenance, repair, replacement and improvement of the system is to charge each customer, based in all cases on amount of use, for the costs of: (1) retiring debt secured by the net revenues of the system issued to pay for improvements and replacements to the system: (2) ongoing repair, replacement and improvement and budgeted as part of the annual costs of the system: and (3) operation, administration and maintenance costs of the system.

Wastewater service charges. The city has investigated several methods of apportioning the costs of the wastewater services provided by the system. Based on its investigation and on the advice of its administrative staff, the city council has previously found, and currently reaffirms, that to ensure the stability and viability of the system for the benefit of its customers, the fairest and most accurate way to apportion the costs of operation, maintenance replacement and improvement of the wastewater service provided by the system is to charge each customer; (1) a connection fee when such customer's property is first connected to the system; (2) a customer service charge for administrative costs of the system as set forth herein; and (3) charges for wastewater usage at rates determined by city council resolution. The city council further has previously found, and currently reaffirms that the charges, rates and fees set forth herein and by resolution fairly and accurately apportion the fixed and variable costs of providing wastewater service among the customers of the system and that the connection fee provides actual benefits to such customers in the form of ready access to wastewater services that would be unavailable if such charge was not charged.

Connection fee. In addition to the findings set forth above, the city council has previously found and currently reaffirms that the connection fee required prior to connection to the system reflects the proportional capital costs of the system, previously paid by the city and the system, attributable to each new customer and that the connection to the system provides actual benefits to each new customer equal to or greater than the amount of such charges. The city council has previously found and currently reaffirms that the connection fee represents the actual costs of connection each customer to the system.

(g)

Useful life of improvements. Based on the advice of its administrative staff, the city council has previously found and currently reaffirms that any improvements to or capital expenditures for the system did not at the time such improvements were constructed and financed, have an expected useful or design life that would exceed that term of the respective bonds issued to finance such improvements or capital expenditures and paid for by rates and charges.

(h)

Charges, rates and fees for nonresidents. The city has previously found and currently reaffirms that the total direct and indirect costs of providing service to users outside the city jurisdiction, where no other contract exists with the governmental units where those users are located, equals at least two times the rates and charges imposed on users located in the city. Indirect costs include payment for capital improvements, extraordinary repairs and replacements for the system and paid for by users served within the corporate limits of the city or the corporate limits of other municipalities which have entered into contracts with the city for such costs, funding depreciation of the improvements comprising the system, and fire and police or other protection for the system paid by city taxpayers or by the governmental units with which the city has contracts for water and sewage disposal service. The city has also previously found that service to nonresident users shall only be provided if they comply with Council Policy Statement No. 32, or any amendments thereto.

(Ord. No. 01-307, § 1, 4-2-2001)