§ 4-1-15. Capital recovery fund/capital recovery charges.

(a)

There is hereby established the capital recovery fund for the waterworks and sewer system of the city.

(b)

Capital recovery charges were initially established by resolution of the city council dated June 25, 1984, and are hereby incorporated herein, merged with and made a part and parcel of this section by reference. Subsequent changes, additions, or revisions in capital recovery charges are likewise made a part and parcel of this section.

(c)

The purpose of said charges and the fund is to provide capital for the payment of expenses reasonably incurred for the major restoration, extension, improvement, betterment, and updating of the waterworks system of the city.

(d)

All capital recovery charges collected by the city including all associated interest earnings, shall be deposited by the finance office in the fund created hereby.

(e)

All expenditures from the fund created hereby shall be approved by city council.

(f)

Capital recovery charges, both water and sewer, are not transferable from the property for which they were originally paid.

(g)

In no case shall a cash refund of capital recovery charges be given unless the property is not developed, the capital recovery charges have already been paid prior to the decision not to develop the property, and service has not been provided. Also, capital recovery charges will not be refunded if they are overestimated when service is provided or if a customer is moving into an existing location requiring a lower level of residential equivalent units (R.E.U.) than the previous occupant(s) at that location.

(h)

Capital recovery charges are applicable to either a new customer or an existing customer who requests service at a new or existing location. The capital recovery charges for either a new or existing customer will be computed based on the quantity of R.E.U. associated with the customer's specific service requirements. The R.E.U. will be based on the schedule of R.E.U. factors adopted by the city and in effect at that time.

(1)

If the location has had service within the past five (5) years, a credit shall be given based on the previous occupants R.E.U. associated with the prior service.

(2)

If the new location has not previously had service or if the property has been vacant for more than five (5) years, capital recovery charges will apply at this location on the same basis as if service had never been established.

(i)

Capital recovery charges are also applicable if an existing customer expands his service requirements at an existing location by either adding equipment or taking such other action which places a greater demand on the water and/or sewer service provided by the city. Thus additional capital recovery charges are applicable for the quantity of R.E.U. generated by the increased demands for water and/or sewer service.

(Ord. of 10/22/84; as amended by Ord. No. 90-05-28(D), 5/28/90; Ord. No. 2009-05-11(A), 5/11/09)