§ 51.10. ESTABLISHMENT OF RATES; RATES AND CHARGES.

(A) Establishment of cost of service. The Village Council has determined that the purpose of water rates is to produce sufficient revenues each year to pay the costs of service. The costs of service to be paid from revenues shall include all of the following:

(1) Operation and maintenance expenses;

(2) Debt service expenses; and

(3) Capital expenses not funded from bonded indebtedness.

(a) The rates to be charged for water service furnished by the Water Supply System shall be made against each lot, parcel of land or premises having any connection with the Water Supply System.

(b) The village shall periodically review rates, fees, rules and regulations of the Water Supply System. The review shall be completed not less than one time per fiscal year. The review will define actual expenses associated with the operation, maintenance and administration of the Water Supply System, as well as debt service requirements, repair and replacement costs. Results of the review shall be reported to the Village Council with recommendations for any adjustments.

(B) Allocation of cost of service; user classification. The Village Council has determined that not all classes of users of the Water Supply System cause the same costs of service. Based on independent investigation and on the advice of the village's independent engineering consultants, the Village Council has previously found and currently reaffirms that:

(1) The commodity costs of water service for users of the Water Supply System located within the village are uniform among users in accordance with the volume of use. Accordingly, all classes of users located within the village shall pay the same rate per gallon of metered water for water supply services;

(2) Certain indirect costs of providing water service, including size of the water service pipe, materials used, location of meters, size of storage and treatment facilities, maintenance and administrative overhead, vary according to the size of meters employed;

(3) Users taking possession of previously undeveloped properties and users changing the nature and amount of use of the Water Supply System at renovated or expanded properties would not bear their proportionate share of the cost of capital improvements to the Water Supply System unless required to pay a capital connection fee; and

(4) Certain types of property use require a reservation of a greater capacity of the Water Supply System than others. The Village Council has therefore developed the following classification of users which the Village Council finds is the most fair and accurate means of apportioning the indirect costs of providing service among different classes of users for purposes of calculating the readiness-to-serve charge and determining the relative demand on capacity of the Water Supply System among different classes of users for purposes of calculating the capital connection fee. For meters of the following sizes, the following meter equivalency ratios shall be used for purposes of allocating the amount of the indirect costs of service and determining the relative demand on capacity of the Water Supply System per meter size.

Meter Size (Inches)	AWWA
Meter Capacity Ratio

5/8 and 3/4	1
1	2.5
1-1/2	5
2	8
3	17.5
4	30
6	62.5

(C) Specific rates and charges.

(1) Commodity charge. Every user shall pay a commodity charge for all water furnished by the Water Supply System. Except as otherwise provided in this subchapter, commodity charges for all water service shall be calculated on the basis of metered gallons of water consumed at rates determined by the Village Council and which fairly apportion the variable costs of providing water service to users of the Water Supply System.

(2) Readiness-to-serve charge. Every user shall pay a readiness-to-serve charge for water service on the basis of meter size in an amount and in the manner determined by the Village Council and which fairly apportions the fixed costs of providing water service for users of the Water Supply System.

(3) Connection fee. Each user connecting or reconnecting to the Water Supply System shall pay a connection fee equal to the actual cost of the material, labor, equipment and overhead related to the installation and inspection of the connection or re-connection as determined by resolution of the Village Council.

(4) Capital connection fee. The Village Council may, by resolution, establish a capital connection fee to defray or recover the cost of capital improvements which are acquired and constructed for the primary purpose of providing additional capacity determined by the village to be reasonably necessary to accommodate:

(a) New connections to the Water Supply System; or

(b) Modifications of existing connections for a use estimated to demand the reservation of greater capacity of the Water Supply System than previously required. Every person seeking to connect previously unconnected property to the Water Supply System, or to reconnect previously connected property to the Water Supply System for a use estimated to demand the reservation of greater capacity of the Water Supply System, may be required to pay a capital connection fee. A capital connection fee shall be established and managed as provided in this section.

1. Calculation of estimated demand on capacity. The estimated demand on capacity of a new connection to the Water Supply System (or modification of an existing connection to the Water Supply System) shall be based on the meter equivalency table set forth in division (B)(4) above.

2. Calculation of capital cost requirements. The capital costs to be defrayed or recovered through the imposition of the capital connection fee shall be determined annually by the village and shall be based on the estimated cost of capital improvements incurred or to be incurred for the primary purpose of providing additional capacity determined by the village to be reasonably necessary to accommodate new connections to the Water Supply System, or modifications of existing connections for a use estimated to demand the reservation of greater capacity of the Water Supply System than previously required.

3. Credits. If the capital connection fee relates to an increase in demand on capacity, the village shall credit against the specific amount of the capital connection fee, the amount of any capital connection fee or similar charges previously paid for connection of that property to the Water Supply System.

(5) Turn-on/turn-off fee. Each user desiring to:

(a) Reinstate service which has been discontinued due to violations of the provisions of this subchapter; or

(b) Voluntarily discontinue or reinstate water service shall pay a fee for reinstating or discontinuing water service, as applicable, in an amount equal to the actual costs of the labor and administrative expenses as determined by resolution of the Village Council.

(6) Meter charge. Each user connecting to the Water Supply System shall pay the actual cost of the required meter and components plus a 10% fee for administration and handling. The meter charge shall be in addition to the connection fee and other fees and charges prescribed by this subchapter.

(7) Fire hydrant rental charges. Any person desiring to utilize any fire hydrant in the village shall make application to the village for the use, which application shall specify the hydrant or hydrants to be used, the length of time the hydrant(s) will be used and the purpose for which the hydrant(s) will be used. Village Council and/or the Department of Public Works Director shall have the authority to deny any application or grant said application in whole or limit the approval up to a certain amount of gallons. If the application is granted, the applicant shall submit a non-refundable rental charge plus a cash deposit for a temporary meter in amounts established by resolution of the Village Council. The fire hydrant connection and meter installation shall be made by the village. A hydrant usage charge, calculated on the basis of metered gallons of water consumed, shall be assessed at rates determined by resolution of the Village Council. Upon expiration of the rental period, the village shall remove the connection and temporary meter. The cash deposit shall be applied by the village to the payment of the hydrant usage charge and the excess amount of the deposit, if any, shall be refunded to the applicant. The purchaser is liable for any damage to the hydrant, Village equipment, or the surrounding area.

(8) Annual fire suppression sprinkler line service fee. Each user connecting or reconnecting a dedicated service line for fire suppression services shall pay an annual sprinkler line service fee on the basis of fire service line size in an amount and in the manner determined by the Village Council and which fairly apportions the fixed costs of providing fire suppression services to users of the Water Supply System.

(9) Other fees. The Village Council may, by resolution, establish certain additional fees as may be required to carry out the purposes of this subchapter.

(D) Publication of rates. Following approval from time to time by the Village Council of rates and charges or revisions thereto for use of the Water Supply System in accordance with this subchapter, the rates, as approved by the Village Council, shall be published once in a newspaper of general circulation in the village within 30 days of approval thereof.

(Ord. 69, passed 10-24-2005; Ord. 79, passed 2-25-2008; Ord. 138, passed 7-10-2017)