§ 215-14. Purpose.

The purpose of this article is to establish a water service charge system for the City. Water charges are provided to recover costs associated with the operation, maintenance, and equipment replacement of the City's water system.

§ 215-15. Definitions.

(Reserved)

§ 215-16. Establishment of water service charge system.

A. System established. The City establishes a water service charge system whereby all revenue collected from water consumers will pay all expenditures for annual operation, maintenance, and equipment replacement of the water system.

B. User's share. Each user shall pay its share of operation, maintenance and replacement costs of the water system, based on the user's share of the total water produced by the City.

C. Revenues. Revenues collected for water service shall be deposited in a separate fund known as the "Water Fund" and will be expended to offset the cost of operation, maintenance and replacement of equipment in the system.

D. Determination of rates. Water service rates and charges to consumers shall be determined and fixed according to § 215-17. The water service charge system shall be adopted upon enactment of this article, shall be published in the official newspaper, and the rates shall be set forth and included in Appendix A, located as an attachment to this chapter. Editor's Note: Appendix A is on file in the office of the Clerk/Treasurer. Future changes in water service rates and charges shall be adopted by Council resolution or motion and shall be published in the official newspaper.

E. Administration and billing. Water service charges and the Water Fund will be administered in accordance with the provisions of § 215-18.

§ 215-17. Determination of water service charges.

Water service charges shall consist of one or more base charges per user and a charge for the consumer's actual water usage.

A. Base charge. The base charge shall be billed equally to all users of the water system for the recovery of administrative costs and the costs of system leakage, spillage, and system flushing and other ordinary City use. Base charges shall be determined by the residential equivalent units as established in Section ________ and included in Appendix A located at the end of this chapter. Editor's Note: Appendix A is on file in the office of the Clerk/Treasurer.

B. Multiple users. Where there is more than one dwelling, business or industry served through one water meter, the base charge shall apply to each such dwelling unit, business unit or industry unit served through that meter.

C. Billable water. Water volume billable to consumers shall be calculated on the basis of metered water usage. The billable water volume per billing cycle shall be equal to the metered water usage during that same billing cycle.

D. Water rates. The following rates are established for water consumed each billing cycle of the year:

(1) Water consumed. The charge per 1,000 gallons consumed is set forth in Appendix A, located as an attachment to this chapter. Editor's Note: Appendix A is on file in the office of the Clerk/Treasurer.

§ 215-18. Water Fund.

A. Establishment. The City establishes a Water Fund as an income fund to receive all revenues generated by the water service charge system and all other income dedicated to the operation, maintenance and replacement of the water system.

B. Revenue to be held by Clerk/Treasurer. All revenue generated by the water service charge system shall be held by the Clerk/Treasurer separate from all other funds of the City.

C. Expenditures. Revenue generated by the water service charge system shall be used to compensate operation, maintenance and replacement costs.

§ 215-19. Administration and billing.

A. Administration. The water service charge system and Water Fund shall be administered according to the following provisions:

(1) System of accounts.

(a) The Clerk/Treasurer in conjunction with Public Works shall maintain a proper system of accounts suitable for determining the operation, maintenance, and equipment replacement, and shall furnish the Council with a report if requested.

(b) The Council shall annually determine whether or not sufficient revenue is being generated for the operation, maintenance and replacement of the water system. The Council will also determine whether the user charges are distributed proportionately to each user in accordance with § 215-16B.

(c) The City shall thereafter, but not later than the end of the year, reassess and, as necessary, revise the water service charge system then in use to ensure the proportionality of the user charges and to ensure the sufficiency of funds to maintain the capacity and performance for which the facilities were constructed.

(2) Responsibility for maintaining records. The Clerk/Treasurer in conjunction with the Public Works Department shall be responsible for maintaining all records necessary to document compliance with the water service charge system adopted.

B. Accounting, billing and collecting.

(1) Liability to pay. The owner of the premises shall be liable to pay for service to the premises whether he is occupying the property or not. The service is furnished to the premises by the City only upon condition that the owner of the premises is liable to the City for the service.

(2) Bills for service. Bills shall be mailed to property owners on a quarterly basis and shall specify the water consumed and water charges in accordance with the rates as set in Appendix A, located as an attachment to this chapter. Editor's Note: Appendix A is on file in the office of the Clerk/Treasurer.

(3) Delinquent accounts (late fees). All charges for water shall be due on the date specified by the City for the respective amount and shall be delinquent 30 days thereafter. Delinquent accounts will be charged the late fee set forth in as specified in Appendix A, located as an attachment to this chapter. The late charge will be added to the bill effective the first day of each month of the delinquency. The City shall attempt to collect delinquent accounts promptly. Where satisfactory arrangements for payment have not been made, the Clerk/Treasurer may, after the procedural requirements of the City of Kellogg policy for utility billing and collection (See Appendix G.) Editor's Note: Appendixes A and G are on file in the office of the Clerk/Treasurer. have been complied with, discontinue service to the delinquent customer by shutting off the water at the stop box. When water service to any premises has been discontinued, service shall not be restored except upon the payment of all delinquent bills and late charges plus a turn-on fee as specified in Appendix A, located as an attachment to this chapter. Delinquent accounts shall be certified by the Clerk/Treasurer who shall prepare an assessment roll each year providing for assessment of the delinquent amounts against the respective properties served. The assessment roll shall be delivered to the Council for adoption on or before December 15 of each year for certification to the County Auditor for collection along with taxes. Such action is optional and may be subsequent to taking legal action to collect delinquent accounts.

(4) Procedure for shutting off water service. Water shall not be shut off under Subsection B(3) or for a violation of rules and regulations affecting utility service until notice and an opportunity for a hearing have first been given the owner of the premises involved. The notice shall be personally served, or served by certified or first-class mail, and shall state that if payment is not made before the date stated in the notice (but not less than 10 days after the date on which the notice is given), the water supply to the premises will be shut off. The notice shall also state that the owner may, before such date, demand a hearing on the matter, in which case the supply will not be cut off until after the hearing. If the customer requests a hearing before the date specified, a hearing shall be held on the matter by the Council at least one week after the date of the request. If, as a result of the hearing, the Council finds that the amount claimed to be owed is actually due and unpaid and that there is not a legal reason why the water supply of the delinquent customer should not be shut off in accordance with this article, the City may shut off the supply.

(5) Federal and state charges. Any charges required by either the federal or state governments or any agency shall be billed to the user as required by state or federal laws. The City shall, by resolution or motion, which is published in the official newspaper of the City, notify the public of the charges being collected by the City on behalf of the state or federal governments or their agencies.

C. Penalties. Each water service charge levied by and pursuant to this article is hereby made a lien upon the lot or premises served, and all charges which are on December 15 of each year (or such other time as required by state law) past due and delinquent shall be certified to the County Auditor as taxes or assessments on the real estate. Nothing in this article shall be held or construed as in any way stopping or interfering with the right of the City to shut off water service to properties with delinquent water service charges which have been certified to the County Auditor.