IN Code § 36-9-23-25 (2021)
2021 Indiana Code|Title 36. Local Government|Article 9. Transportation and Public Works|Chapter 23. Municipal Sewage Works|36-9-23-25. Fees; Factors Used to Establish; Persons Obligated to Pay; Disposition of Certain Fees; Different Fee Schedules Permitted; Property Not Occupied by Owner

Sec. 25. (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.