Sewer service charges to each customer shall be imposed using a methodology
that allocates a reasonably proportionate share of the costs of administration,
operation, maintenance, replacement and debt service for all wastewater facilities
and services provided by the Village. The charges imposed shall be based on
the best information reasonably available to the Village.
The basic sewer service charge is the total service charge incurred
by the Village to pay for its share of debt retirement costs for capital expenditures
as well as the operation, maintenance and replacement costs of the local and
regional system. (The basic sewer service charge does not include surcharges,
special charges or connection charges which are otherwise provided for in
this chapter or Commission Regulations.) The component costs are described
as follows:
A.
Debt retirement costs. Debt retirement costs include
the financing costs (both principal and interest) for all capital expenditures
existing and proposed to be made by the Village. New debts shall be added
as incurred.
B.
Operation, maintenance and replacement (OM&R) costs.
Operation and maintenance costs include costs to operate and maintain the
local wastewater facilities in order to provide the capacity and performance
required by the customers. These costs include all ordinary and necessary
costs required to support daily operations of the local system, including
treatment costs, supplies, employees' wages and benefits, administrative expenses,
consultants' fees, and so forth. Replacement costs are the amount necessary
to ensure replacement of all equipment, accessories, or appurtenances that
are necessary to maintain the local system. These costs are determined by
using the installed cost of the equipment (excluding the cost of technical,
legal, administrative, and other fees, since such costs generally are not
required when materials are replaced) and assigning a service life to such
facilities in order to estimate when replacement will be required. A sinking
fund factor is then applied to determine the amount of money to be collected
per year to ensure that an adequate amount will be available at the time the
equipment is likely to need replacement. It is anticipated that such funds
will be invested by the Village in an interest-bearing account until required.
Although not anticipated, it is conceivable that OM&R charges may include
debt service costs if borrowing is ever required to meet unexpected OM&R
costs.
C.
Regional basic sewer service charges. Regional basic
sewer service charges include the Village's share of debt retirement costs
and OM&R costs related to the regional system. Regional basic sewer service
charges shall be allocated to the Village on an equitable basis, as determined
by the Commission and described in more detail in the Commission Regulations,
which are incorporated by reference as if set forth in full herein.
Sewer service charge shall be reviewed by the Village or Commission
on an annual or other regular basis and may be adjusted by resolution of the
Village or Commission whenever necessary or prudent to meet the Village's
or District's debt retirement costs, OM&R costs and related expenses.
In addition to general sewer service charges, customers may be subject
to surcharges or other special charges, as determined by the Village.
A.
Surcharges.
(1)
Surcharge for regional debt retirement component of sewer
service charge based on volume and characteristics of wastewater. The Village
shall impose a fixed surcharge on significant dischargers based on the equivalent
meter methodology set forth in Commission Resolution 99-03, as may be amended
from time to time, and Commission Regulation Section 9.7. Commission Resolution
99-03 and Commission Regulation Section 9.7 are incorporated by reference
as if set forth in full herein.
(2)
Surcharge for regional OM&R costs component of sewer
service charge based on strength of wastewater. By resolution of the Village
Board, the Village may impose a variable surcharge based on the strength of
the wastewater discharged into the local system and ultimately discharged
into the regional system. As of the date of adoption of this chapter, the
Village has not established a surcharge based on strength of wastewater for
regional OM&R costs. Prior to adoption of any such resolution, the Village
Board shall consult with the Village Engineer and/or Commission Engineer to
develop a methodology that identifies the basis for the surcharge and with
the Village Attorney and/or Commission Attorney to confirm that adoption of
the surcharge is in accordance with current law. A public hearing shall be
held prior to adoption of any such surcharge.
B.
Special charges. Whenever any customer discharges waste
into the local system or the District's wastewater facilities which causes
physical damage to the local system or the District's wastewater facilities
or which causes the Village and/or Commission to incur unusual additional
costs, the Village may assess a special charge against such customer for the
work required to repair the facilities or to recover the unusual additional
cost.
C.
Surcharges and special charges shall be assessed by the
Village on a case-by-case basis, following consultation with the Commission
Engineer and in accordance with Village ordinances and resolutions and Commission
regulations and resolutions, as may be amended from time to time.
When authorized by resolution of the Village Board, the cost of any
work or improvement to the local system may be levied and collected by special
assessment against benefitted property pursuant to § 66.0703, Wis.
Stats., or other applicable special assessment procedures.
