§ 42-183. Findings.

(a)

Potable water. The city council has previously found, and currently reaffirms that the businesses, industries, governmental and charitable agencies and residents located in the city need to have potable and otherwise usable water.

(b)

Availability. The city further has previously found, and currently reaffirms, that the supply of potable water available from private wells within the city is insufficient to assure that all businesses, industries, governmental and charitable agencies, and residents will have sufficient potable water available for their use and other water necessary for industrial and fire prevention and control unless the city offers water to all properties located within the city.

(c)

Method of measuring use. Based on advice of its engineers, the city has previously found and currently affirms, that the most precise method of measuring for use of the water supply system by any user is by a meter or meters installed and controlled by the city.

(d)

Continuation of service. The city has previously found, and further currently reaffirms that, in order to provide and continue to provide clean potable and other usable water to all users of the water supply system, in quantities necessary for all varieties of use, it is necessary from time to time to install improvements, enlargements, extensions and repairs to the system.

(e)

Purpose of charges. Charges for the use of water supply system are hereby established for the purpose of recovering the cost of construction, reconstruction, maintenance, repair, and operation of the system. Such charges shall be made in accordance with the provisions hereinafter set forth and shall be made against all users of the system.

(1)

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.

(2)

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 shall not operate at a deficit.

(3)

The city staff or designated parties shall periodically review the charges, rates, fees, rules and regulations of the water supply system. Said review shall be completed not less than one time per fiscal year. Results of said review shall be reported to the city council with respective recommendations for any adjustments.

(4)

The charges, rates and fees shall be set so as to recover costs from the users in reasonable proportion to the cost of serving those users.

(f)

Proportionality, fairness, and benefits of charges, rates and fees. The city 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 water supply system, is to charge each user:

(1)

Based in all cases on amount of use for:

a.

The cost of retiring debt secured by the net revenues of the system issued to pay for improvements and replacements to the water supply system;

b.

The costs of ongoing repair, replacement and improvement and budgeted as part of the annual costs of the system; and

c.

Operation, administration and maintenance costs of the system.

(2)

The city has investigated several methods of apportioning the costs of the water supply system. Based on its investigation and on the advice of its engineers, the city council has previously found, and currently reaffirms, that to ensure the stability and viability of the system for the benefit of its users, the fairest and most accurate way to apportion the costs of operation, maintenance, replacement and improvement of the system is to charge each user:

a.

A monthly fixed charge for water service (which varies depending on the size of the water intake pipe and meter) which fee re- flects user's proportionate share of the fixed costs of the system; and

b.

A commodity charge for water usage which is based on the user's actual use of water supplied by the system.

(3)

The city council has previously found, and currently reaffirms that the charges, rates and fees set forth herein fairly and accurately apportion the fixed and variable costs of the water supply system among the users of the system and that the monthly service charge and commodity charges for water service charged to each user of the water supply system provide actual benefits to such users in the form of ready access to water services that would be unavailable if such charges were not charged. The city council has previously found that the benefit charge, as provided in section 42-200, represents a fair and accurate method for apportioning the cost of mains to persons who connect to the water supply system subsequent to construction, and further is equal to the benefit conferred upon such persons. The city council has previously found and currently reaffirms that the charges for private fire protection, customer service, public fire protection, and service to nonresidents, as provided in sections 42-202 through 42-205, represent fair and accurate charges necessary to make such services available and that such charges are equal to the actual benefit conferred upon such users.

(g)

Useful life of improvements. Based on the advice of its engineers, the city council has previously found and currently reaffirms that any improvements to or capital expenditures for the water supply system did not, at the time such improvements were constructed and financed, have an expected useful or design life that would exceed the 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 hereby ratifies and confirms, 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 water supply system benefiting all users of 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 water supply system, and fire and police or other protection for the water supply system paid by city taxpayers or by the governmental units with which the city has contracts for water distribution.

(Prior Code, § 2.41; Ord. No. 2000-08, § 1(2.41), 5-15-2000)