Wisconsin Administrative Code › Department of Natural Resources › NR 100-199 - Environmental Protection General › Chapter NR 162 - Clean Water Fund Program › Subchapter II - Financial Assistance Requirements › Section NR 162.07 - Requirements for a user charge system and sewer use ordinance

Current through June 24, 2024
(1) GENERAL. Any
				  user charge system and applicable ordinances adopted by a recipient shall be
				  maintained in accordance with s.
				  281.58 (14) (b)
				  7, Stats., for the useful life of a
				  wastewater treatment works. The applicant shall submit user charge information
				  to the department and shall certify to the department that the user charge
				  system meets all the applicable requirements in this section.
(2) APPLICABILITY. A user charge system and
				  sewer use ordinance is required of the applicant receiving financial assistance
				  under this subchapter for any wastewater treatment works project.
(3) USER CHARGE SYSTEM REQUIREMENTS. Any user
				  charge system under this section shall do all of the following:
(a) Require that each user or user class pays
				  its proportionate share of operation and maintenance costs, including
				  replacement costs, of the wastewater treatment works within the recipient's
				  service area.
(b) Provide that the
				  costs of operation and maintenance for all flow not directly attributable to
				  users be distributed proportionally among all users of the recipient's
				  wastewater treatment works.
(c)
				  Require that the charges for users or user classes generate sufficient revenue
				  to pay costs identified in par. (e) 2. and 3.
(d) Require that the recipient establish an
				  equipment replacement fund, maintain the equipment replacement fund as a
				  separate fund of the municipality, and make deposits to this fund on an annual
				  basis or maintain a balance acceptable to the department. This fund is to be
				  used for the costs of replacing equipment related to the wastewater treatment
				  works. The municipality may also use the equipment replacement fund for
				  unexpected, unbudgeted costs incurred for continuing effective operations of
				  the treatment works. The municipality shall periodically make appropriate
				  adjustments to the equipment replacement fund deposit schedule or balance,
				  including adjustments needed to restore the fund balance following an
				  expenditure from the fund.
(e)
				  Establish a financial management system that accounts for all of the following:
1. Revenues generated.
2. Costs of operations and maintenance of the
				  wastewater treatment works, including an appropriate amount of money to be
				  deposited annually into the equipment replacement fund.
3. Debt service costs, including debt service
				  reserves and debt coverage requirements. In this subdivision, "debt coverage"
				  means the ratio of net revenue available for debt service to the average annual
				  debt service requirements of an issue of revenue bonds.
(f) Require the review, at least once every 2
				  years, of the wastewater contribution of users and user classes, the total
				  costs of operations and maintenance of the wastewater treatment works, and the
				  overall user charge system.
(g)
				  Require that each user that discharges any toxic pollutants or high strength
				  wastes to a wastewater treatment works pay for any increased costs associated
				  with the discharge.
(h) Provide
				  that each user is notified, at least annually, in conjunction with a regular
				  bill, of the rate of charge attributable to service provided by the wastewater
				  treatment works.
(i) Be based on
				  actual or estimated use except as provided for under s.
				  281.58 (14) (b)
				  7, Stats.