§ 56-1. Findings.

(a)

Necessity of potable water. The city commission 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 of potable water. The city commission 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)

Necessity for sewage disposal. The city commission further has previously found, has previously ordained at section 56-71, 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 are enhanced by the creation of a public sewer system and treatment plant, with regulation by the city of pollutants and other harmful materials according to state and federal standards.

(d)

Meters for measuring use of water supply system. Based on advice of its engineers, the city commission has previously found, and currently reaffirms, that the most precise method, given available technology, of measuring the use of the water supply from the system by any user is by a meter or meters installed and controlled by the city.

(e)

Meters for measuring use of sewage disposal system; fix commodity charge for unmetered premises. Based on advice of its engineers, the city commission has previously found, and currently reaffirms, that the most practical, cost effective and accurate method, given available technology, of measuring the use of the system's sewers by any user is by the meter or meters used to measure water usage. The city commission has previously found, and currently reaffirms, that for unmetered premises, the fixed commodity charge set forth herein reflects a reasonable estimate of the cost of the sewage disposal and treatment services provided to average users.

(f)

Continuation of service. The city commission has previously found, and further currently reaffirms that, in order to provide and continue to provide clean potable and other usable water to all customers of the 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. The city commission 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, treatment facilities, lift stations, sewer service pipes and all other related facilities.

(g)

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 safe drinking water acts and related regulations, including permits issued under the national pollution discharge elimination system and all requirements of the Michigan Department of Environmental Quality, to provide for the payment principal of and interest on any bonds authorized to be issued as and when the same become due and payable, to create a bond and interest redemption fund therefor, to provide a fund for reasonable and necessary improvements to the system and to provide for such other funds as are necessary to meet contractual obligations of the issuer. Such charges and fees 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 payments shall be made to the city in amounts computed on the basis of this article.

(2)

The charges, rates and fees for water and sewer service by the system are established herein to adequately provide for bond requirements and to ensure that the system does not operate at a deficit.

(3)

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

(4)

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

(h)

Proportionality, fairness, and benefits of charges, rates and fees. The city commission 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 user, based in all cases on amount of use, for the costs of retiring debt secured by the net revenues of the system issued to pay for improvements and replacements to the system, ongoing repair, replacement and improvement and budgeted as part of the annual costs of the system, and operation, administration and maintenance costs of the system.

(1)

Service charges. The city has investigated several methods of apportioning the costs of the water service provided by the system. Based on its investigation and on the advice of its engineers, the city commission 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 connection charge for water and sewer service when such user's property is first connected to the system, a monthly service charge for water service (which varies depending on the size of the water intake pipe and meter) which reflects each user's proportionate share of the fixed costs of the system, a commodity charge for water usage which is based on the user's actual use of water supplied by the system, and a commodity charge for sewage disposal service which is based on the user's actual use of water supplied by the system, provided, however, that during the months of June, July and August, residential sewage rates are based upon an average water use for the preceding nine months in order to allow for the historically documented fact that water usage during the months of June, July and August is significantly increased, but such increase does not flow through the sewage disposal system. The city commission has previously found, and currently reaffirms that the rates and charges set forth in Ordinance No. 620, dated February 8, 2000, accurately apportioned the fixed and variable costs of the system, as of the date of such amendment, among the users of the system and that connection charge, the monthly service charge and the commodity charges provide actual benefits to such users in the form of ready access to water and sewage disposal services that would be unavailable if such charges were not charged.

(2)

Connection charges. In addition to the findings set forth above, the city commission has previously found and currently reaffirms that the connection charges required prior to connection to the system, and in particular the connection charges established by the city Ordinance No. 620, dated February 8, 2000, reflect the proportional capital costs of the system, previously paid by the city and the system, attributable to each new user and that the connection to the system provides actual benefits to each new user equal to or greater than the amount of such charges.

(i)

Operation and maintenance fund. The city commission has previously found, and currently reaffirms, that:

(1)

The wastewater fund of the city includes an operation and maintenance fund which was established as a repository for a sum sufficient to provide for the payment during the succeeding period of the next month's expenses of administration and operation of the system, including such current expenses for the maintenance thereof as may be necessary to preserve the same in good repair and working order;

(2)

The fund is funded from user charges at a rate which is not in excess of the rate at which the system requires funds for operation and maintenance of the system; and

(3)

The current users of the system benefit from the system in proportion to the amount of such users' fees contributed to the fund.

(j)

Bond and interest redemption fund/replacement and improvements fund. The city commission has previously found, and currently reaffirms, that:

(1)

The wastewater fund of the city includes a fund which was established as a necessary prerequisite for the city to obtain bond financing for the necessary capital improvements;

(2)

The fund was established and is currently maintained for the purpose of ensuring that the system has funds available to make necessary repairs and replacements of capital items on a timely basis and to ensure uninterrupted service to users; and to acquire necessary improvements to the system as and when they are needed for the benefit of all users;

(3)

The fund is funded from user charges at a rate which is not in excess of the rate at which the system requires funds for replacement and improvement of capital items;

(4)

The current users of the system benefit from the system in proportion to the amount of such users' fees contributed to the fund; and

(5)

The fund is maintained in accordance with the city's capital improvement plan, which is reviewed by the city commission annually prior to June 1 of each year pursuant to the city Charter.

(Code 1984, § 30-1; Ord. No. 633, § 1, 11-13-2001)