RESOLUTION NO. 7
TOWN OF WESTPORT
A RESOLUTION PROVIDING FOR A SURCHARGE FOR IMPROVEMENTS TO SEWER SYSTEM, FOR PAYMENT OF REVENUE BOND AND YEARLY REVIEW OF RATE
1. Surcharge for Bond Issue. There shall be charged a monthly surcharge for the services provided by the improvement financed by the Revenue Bond Series 2018. The surcharge shall be segregated from other revenues of the utility and shall be used for the payment of the revenue bonds. Provided that such surcharge shall create net income, remaining from time to time after first paying all reasonable and current expenses of maintenance, repairs, replacements and operation, sufficient to fund interest, reserve and debt service fund annual requirements.
2. Rates and collection. The Town does hereby establish the special charge or surcharge payable by each customer of its System who receives or benefits from the services of the Project. Such charge or surcharge shall be set at a level which will produce income at the times and in amounts sufficient to pay when due the principal of and interest on the Revenue Bond Series 2018 and all other payments as may be required under the loan agreement and Revenue Bond Series 2018.
3. Revenue Bond Series 2018 Surcharge. The following sewer debt service surcharge shall be applicable to all customers served whether in or out of the town or whether retail or sales or resale:
The active sewer base charge is hereby reduced from $30.00 to $9.00; Inactive base charge is hereby reduced from $15.00 to $0; The Business/Piggyback base charge is hereby reduced from $60.00 to $18.00 and the Revenue Bond Series 2018 Surcharge shall be $26.00 per active, inactive user, and Business/Piggyback, per month.
This surcharge shall become effective July 1st, 2018.
This surcharge shall remain in effect until such time as the revenue bonds are discharged. The initial surcharge shall be collected at the same time as other charges of the sewer system. The surcharge is found to be equitable for the services provided by the improvement.
4. Segregation. The debt service surcharge shall be segregated from other income of the Sewer System in a separate account and is pledged to the South Dakota Board of Water and Natural Resources for the payment of the loan payments on the Revenue Bond Series 2018.
5. Yearly review. The amount of the surcharge shall be reviewed from year to year and may be modified in order to provide such funds as are set forth herein. The charges shall be reviewed yearly by town personal and administratively adjusted, upwards or downwards, pursuant to SDCL § 9-40-15 to such amounts as may be necessary to pay principal, interest, and other charges as may become due and owing under the Revenue Bond Series 2018.
6. Billing and Accounting. The surcharge shall be included in the monthly user sewer bill. Nothing contained herein requires the surcharge be indicated on the billing; however, the surcharge segregation shall be indicated on the books of the Town.
7. Surcharge not to create constitutional indebtedness. The charges provided herein are for the purpose of paying the Revenue Bond, Series 2018 of the Town which do not constitute indebtedness within the meaning of Article XIII, Section 4 of the South Dakota Constitution.
8. Severability. If any one or more of the provisions of the shall be held invalid, illegal, or unenforceable in any respect, by final decree of any court of lawful jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other provision hereof.
Adopted at Town of Westport, South Dakota, this 9th day of April 2018
Town of Westport
Attest: Doreen Hertel
Adopted: April 9th, 2018
Approved: April 9th, 2018
Published: May 2, 2018
Published once at the total approximate cost of $41.16. 15844