(a)Subject to section 37 of this chapter, the
municipal legislative body shall, by ordinance, establish just and
equitable fees for the services rendered by the sewage works, and
provide the dates on which the fees are due.
(b)Just and equitable fees are the fees required to maintain the
sewage works in the sound physical and financial condition necessary
to render adequate and efficient service. The fees must be sufficient to:
(1)pay all expenses incidental to the operation of the works,
including legal expenses, maintenance costs, operating charges,
repairs, lease rentals, and interest charges on bonds or other
obligations;
(2)provide the sinking fund required by section 21 of this
chapter;
(3)provide adequate money to be used as working capital; and
(4)provide adequate money for i
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(a) Subject to section 37 of this chapter, the
municipal legislative body shall, by ordinance, establish just and
equitable fees for the services rendered by the sewage works, and
provide the dates on which the fees are due.
(b) Just and equitable fees are the fees required to maintain the
sewage works in the sound physical and financial condition necessary
to render adequate and efficient service. The fees must be sufficient to:
(1) pay all expenses incidental to the operation of the works,
including legal expenses, maintenance costs, operating charges,
repairs, lease rentals, and interest charges on bonds or other
obligations;
(2) provide the sinking fund required by section 21 of this
chapter;
(3) provide adequate money to be used as working capital; and
(4) provide adequate money for improving and replacing the
works.
Fees established after notice and hearing under this chapter are
presumed to be just and equitable.
(c) Except as otherwise provided in a provision included in an
ordinance under subsection (f), the fees are payable by the owner of
each lot, parcel of real property, or building that:
(1) is connected with the sewage works by or through any part of
the municipal sewer system; or
(2) uses or is served by the works.
Unless the municipal legislative body finds otherwise, the works are
considered to benefit every lot, parcel of real property, or building
connected or to be connected with the municipal sewer system as a
result of construction work under the contract, and the fees shall be
billed and collected accordingly.
(d) The municipal legislative body may use one (1) or more of the
following factors to establish the fees:
(1) A flat charge for each sewer connection.
(2) The amount of water used on the property.
(3) The number and size of water outlets on the property.
(4) The amount, strength, or character of sewage discharged into
the sewers.
(5) The size of sewer connections.
(6) Whether the property has been or will be required to pay
separately for any part of the sewage works.
(7) Whether the property, although vacant or unimproved, is
benefited by a local or lateral sewer because of the availability of
that sewer. However, the owner must have been notified, by
recorded covenants and restrictions or deed restrictions in the
chain of title of the owner's property, that a fee or assessment for
sewer availability may be charged, and the fee may reflect only
the capital cost of the sewer and not the cost of operation and
maintenance of the sewage works.
(8) The cost of collecting, treating, and disposing of garbage in a
sanitary manner, including equipment and wages.
(9) The amount of money sufficient to compensate the
municipality for the property taxes that would be paid on the
sewage works if the sewage works were privately owned.
(10) Any other factors the legislative body considers necessary.
Fees collected under subdivision (8) may be spent for that purpose only
after compliance with all provisions of the ordinance authorizing the
issuance of the revenue bonds for the sewage works. The board may
transfer fees collected in lieu of taxes under subdivision (9) to the
general fund of the municipality.
(e) The municipal legislative body may exercise reasonable
discretion in adopting different schedules of fees, or making
classifications in schedules of fees, based on variations in:
(1) the costs, including capital expenditures, of furnishing
services to various classes of users or to various locations; or
(2) the number of users in various locations.
(f) Notwithstanding IC 14-33-5-21, this subsection does not apply
to a conservancy district established under IC 14-33 for the collection,
treatment, and disposal of sewage and other liquid wastes. In an
ordinance adopted under this section, the municipal legislative body
may include one (1) or more of the following provisions with respect
to property occupied by someone other than the owner of the property:
(1) That fees for the services rendered by the sewage works to the
property are payable by the person occupying the property. At the
option of the municipal legislative body, the ordinance may
include any:
(A) requirement for a deposit to ensure payment of the fees by
the person occupying the property; or
(B) other requirement to ensure the creditworthiness of the
person occupying the property as the account holder or
customer with respect to the property;
that the municipal legislative body may lawfully impose.
(2) That the fees for the services rendered by the sewage works to
the property are payable by the person occupying the property if
one (1) of the following conditions is satisfied:
(A) Either the property owner or the person occupying the
property gives to the general office of the utility written notice
that indicates that the person occupying the property is
responsible for paying the fees with respect to the property and
requests that the account or other customer or billing records
maintained for the property be in the name of the person
occupying the property. At the option of the municipal
legislative body, the ordinance may provide that a document
that:
(i) is executed by the property owner and the person
occupying the property;
(ii) identifies the person occupying the property by name; and
(iii) indicates that the person occupying the property is
responsible for paying the fees assessed by the utility with
respect to the property;
serves as written notice for purposes of this clause.
(B) The account or other customer or billing records maintained
by the utility for the property otherwise indicate that:
(i) the property is occupied by someone other than the owner;
and
(ii) the person occupying the property is responsible for
paying the fees.
(C) The property owner or the person occupying the property
satisfies any other requirements or conditions that the
municipal legislative body includes in the ordinance.
(3) That fees assessed against the property for the services
rendered by the sewage works to the property do not constitute a
lien against the property, notwithstanding section 32 of this
chapter, and subject to any requirements or conditions set forth in
the ordinance.
This subsection may not be construed to prohibit a municipal
legislative body from including in an ordinance adopted under this
section any other provision that the municipal legislative body
considers appropriate.
[Pre-Local Government Recodification Citations: 19-2-5-19
part; 19-2-5-20 part; 19-2-5-21.]
As added by Acts 1981, P.L.309, SEC.96. Amended by Acts
1981, P.L.317, SEC.23; P.L.35-1990, SEC.70; P.L.114-2008, SEC.29;
P.L.196-2014, SEC.5.