| (a) In calculating standby fees to be used to supplement the
operation and maintenance fund, the following definitions apply.
(1) Connection, as used in this section, means a standardized
measure of consumption, use, generation, or discharge attributable to an individual
unit of development calculated in accordance with generally accepted engineering,
or planning standards. Connections shall be used to calculate the standby
fee. Connections may be described in terms of single family equivalent connections,
living unit of equivalents, or any other generally accepted unit of consumption
typically attributable to a single family household. The assumed population
equivalent per connection should be indicated.
(2) Active connection, as used in this section, means
a lot or tract with vertical improvements and a meter in service for which
water and/or wastewater usage is billed.
(3) Inactive connection, as used in this section, means
a lot or tract with existing vertical improvements, and where water and/or
wastewater connections were made but such service is not being provided nor
billed.
(4) Undeveloped property (expressed in terms of connections),
as used in this section, means a tract, lot or reserve in the district to
which no water or wastewater connections or drainage services exist and for
which:
(A) water, wastewater, or drainage facilities and services
are available;
(B) water supply, wastewater treatment plant capacity, or drainage
capacity sufficient to serve any portion of the property is available; or
(C) major water supply lines, wastewater collection lines,
or drainage facilities with capacity sufficient to serve any portion of the
property are available.
(b) Only those districts which meet the following criteria
may seek approval from the commission to use standby fee revenue to supplement
the operation and maintenance fund:
(1) all capitalized funds or reserves for operating purposes
which were derived from all prior bond issues (except an amount not to exceed
a three-month reserve) have been depleted or are projected to be depleted
within the three years in which the standby fees are to be levied; and
(2) the operation and maintenance fund is operating at
a deficit or is projected to operate at a deficit within the three years in
which the standby fees are to be levied with:
(A) rates for the first 10,000 gallons of water and wastewater
usage for residential users (or equal or greater amounts for other users)
which exceed $40; or
(B) rates for the first 10,000 gallons of usage for residential
users (or equal or greater amounts for other users) which exceed $27 if the
district is a provider of only water or wastewater service.
(c) In determining the revenue to be generated from water and
wastewater rates if such rates do not equal or exceed the rates stated in
subsection (b)(2) of this section, an amount will be added to the minimum
charge such that the total bill for 10,000 gallons of usage will equal the
rates stated in subsection (b)(2) of this section.
(d) Standby fee amounts shall be determined so that all of
the following are true:
(1) The total revenue projected to be generated from the fee
is not more than that necessary to balance the projected operation and maintenance
budget assuming:
(A) a 90% collection rate of the proposed fee;
(B) maintenance tax revenue based on a 90% collection rate
is applied toward the budget;
(C) all of the water, wastewater, or drainage revenue projected
for the coming year is applied toward the budget, with rates or revenues established
or assumed at an amount equal to or higher than those in the preceding subsection
(b)(2) of this section; and
(D) an operating reserve not to exceed three months included
in the first year's budget if that reserve is not already existing.
(2) The fee amount shall not exceed the rate charged
to active connections for 10,000 gallons actual water and wastewater usage;
(3) The fee amount equitably distributes the fixed costs
of operating and maintaining the district's water, wastewater, or drainage
facilities among active connections, inactive connections, and undeveloped
property owners. In the absence of an allocation of a district's budget to
fixed and variable expenses in an application, the staff shall make its own
determination based on a predetermined fixed and variable allocation, a copy
of which shall be made available from the executive director. A district may
submit, with supporting and substantiating documentation, an allocation specific
to that district.
(e) In determining whether a district which meets the foregoing
requirements be allowed to impose standby fees for operation and maintenance
revenue and the amount of the standby fee levy against the various categories
of development authorized to be imposed, the following factors may be considered:
(1) the amount of the operating deficit;
(2) the amounts charged or proposed to be charged for
water and/or wastewater services usage;
(3) the efficiency and prudence of utilization of operating
funds;
(4) the capacity of the various components of the system;
(5) the projected buildout compared to actual buildout;
(6) the amounts charged by districts with comparable land
uses; and
(7) maintenance tax levy, if any.
(f) Applications shall include the following:
(1) an application fee of $100;
(2) a certified copy of a board resolution which shall
contain a request for commission approval of the fee and shall state the designated
fund to which standby fee revenues will be applied, the amount of the fee
and the intervals or periods of billing for such standby fees (either monthly,
quarterly or annually);
(3) a proposal for the standby fee amount including substantiating
calculations to show how the standby fee was derived;
(4) a map of the district (not larger than 24 inches by
36 inches) which shall clearly designate the properties against which the
proposed standby fee will be levied. If such information is not available
within agency files, the executive director may require that water, wastewater,
or drainage facilities serving those properties be identified. An accounting
of water supply, wastewater treatment facilities, or drainage facilities and
capacity available in those facilities may also be required.
(5) a table indicating the ultimate number of connections
according to section for which the district has water, wastewater, or drainage
facilities. Indicate active connections, inactive connections, and the number
of connections attributable to undeveloped property;
(6) a copy of the district's operating budget for the
past two years and the proposed budget for the coming year. Indicate those
fixed costs required to operate and maintain the water, wastewater, or drainage
facilities, including a proportionate share of consultant and organizational
fees attributable to operating and maintaining the water, wastewater, or drainage
facilities and those expenses not related to operating and maintaining the
district's water, wastewater, or drainage facilities, such as operating a
recreational facility;
(7) an indication of revenues available for operation
and maintenance costs and the sources of those revenues. Include water consumption
records, wastewater flow records, or drainage maintenance records (if used
in determining charge for service) for the previous two years and projected
for the coming year as reflected in the proposed budget;
(8) a certified copy of the district's most current order
establishing the water and/or wastewater rates or drainage charges, as applicable;
(9) any other information as the executive director may
require to assure that the fees are consistent with the criteria contained
herein;
(10) in the event that a district provides the executive
director with written consent of all landowners of undeveloped property in
the district identified on the district's tax rolls and of all mortgagees
of undeveloped property who have submitted a written request to be informed
of any hearing pursuant to §293.145 of this title (relating to Public
Hearing and Notice Requirements), to the proposed levy of standby fees, the
district shall be exempted from the requirements of paragraphs (3), (5) and
(6) of this subsection except that the district shall provide a copy of the
district's operating budget for the past two years and the coming year.
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