[Adopted 1-9-1980 by Ord. No. 1481 (Ch. 96, Part 2, of the 1975 Borough Code)]
The annual operation, maintenance and replacement costs (called "O and M costs") of the Linden Roselle Sewerage Authority (called "Authority") for treatment services provided to the Borough shall be allocated to the Borough in proportion to use based upon the Borough's relative contributions of wastewater volume, biochemical oxygen demand and suspended solids. The following percentages shall be used by the Authority to allocate its O and M costs: 32% for wastewater volume; 45% for biochemical oxygen demand; and 23% for suspended solids. The Authority shall review this allocation procedure at least biannually to ensure that the Borough is charged O and M costs in proportion to use, sufficient revenues are generated and excess revenue from a class of users if applied toward the O and M costs allocated to that class for the next year.
The Authority's O and M costs allocated to the Borough in accordance with § 355-19 shall be recovered from users of the Borough's sewer system in proportion to use via the Borough's ad valorem property tax system. Users of the Borough's sewer system shall be classified as follows:
A. 
Residential and small nonresidential: including dwellings and commercial and industrial users that contribute no more than the equivalent of 25,000 gallons per day of sanitary wastes (235 milligrams per liter biochemical oxygen demand and 200 milligrams per liter suspended solids).
B. 
Major industrial: including any nongovernmental user that discharges more than the equivalent of 25,000 gallons per day of sanitary wastes (235 milligrams per liter biochemical oxygen demand and 200 milligrams per liter suspended solids) or discharges toxic pollutants.
C. 
Tax-exempt: including users that pay no ad valorem real property tax, but excluding public properties performing local governmental functions.
A. 
The Borough's share of the Authority's O and M costs shall be assigned to each of the three classes on the basis of relative wastewater volume, biochemical oxygen demand and suspended solids contributed by each class and using the percentages in § 355-19.
(1) 
O and M costs assigned to the residential and small nonresidential class shall be divided by the total assessed valuation of properties in that class to arrive at the incremental sewer tax rate which shall be included in the municipal tax rate for that year. The Borough shall annually notify each user in the residential and small nonresidential class of the incremental sewer tax rate.
(2) 
Users in the major industrial class shall be individually charged each year as follows:
(a) 
The incremental sewer tax rate shall be applied to the assessed valuation of each user's real property to determine the amount paid via ad valorem taxes.
(b) 
Charges to each user based upon actual use shall be determined by applying unit charges for wastewater volume, biochemical oxygen demand and suspended solids to each major industrial user's contribution of wastewater volume, biochemical oxygen demand and suspended solids. Unit charges shall be computed annually by applying the allocation percentages in § 355-19 to the O and M costs assigned to the major industrial class and dividing, respectively, by the total quantities of wastewater volume, biochemical oxygen demand and suspended solids from the major industrial class.
(c) 
The amount paid by each user via ad valorem taxes shall be compared to the amount based on actual use, and where the former is a greater, a rebate equal to the difference shall be made to the user and where the former is less, a surcharge equal to the difference shall be assessed against the user.
(3) 
Users in the tax-exempt class shall be charged that class' share of O and M costs by applying a unit rate against metered water consumption during the fourth quarter of the prior year. The unit rate shall be computed each year by dividing the tax-exempt class' share of O and M costs by the total metered water consumption for that class during the fourth quarter of the previous year. If for a given user it is found that metered water consumption during the fourth quarter does not fairly reflect the quantity of wastewater contributed during the year, then an estimate or measure of wastewater volume shall be used as the basis for applying the unit rate.
B. 
Properties in the Borough not connected to the sewer system shall be given an annual rebate equal to the incremental sewers tax times the assessed valuation.
C. 
Each user (regardless of class) discharging toxic pollutants that cause an increase in the cost of managing the Authority's effluent or sludge disposal shall be charged for such increased costs.
The Authority shall annually allocate to the Borough the costs of its industrial pretreatment program on the basis of relative wastewater volume from the major industrial class (defined in § 355-20). Such costs shall be charged against volume, biochemical oxygen demand and suspended solids contributed by each.
A nonresidential user of the Borough's sewer system discharging, exclusive of sanitary waste, more than 25,000 gallons per day of wastewater or more than 49 pounds per day of biochemical oxygen demand or more than 42 pounds per day of suspended solids shall make industrial cost recovery payments in accordance with federal grant regulations. The payments shall be computed to recover from these users their proportionate share of federal grant funds received by the Authority for its secondary treatment facilities and all future grants for other facilities (such as land-based sludge disposal). The payments from each user shall be based upon the user's contribution of wastewater volume, biochemical oxygen demand and suspended solids, or reserved capacity, whichever is greater. Such payments shall be collected by the Authority, which shall handle such funds in accordance with federal grant regulations.