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Code of Ordinance › Chapter 70 — UTILITIES › Article III — SEWER SERVICE

The rates and charges for service furnished by the sewer system shall be established by resolution of the village council. (Comp. Ords. 1987, § 25.058)

The rates fixed pursuant to this division are estimated to be sufficient to provide for the payment of the expenses of administration and operation and such expenses for maintenance of the system as are necessary to preserve the system in good repair and working order, to provide for the payment of the interest upon and the principal of all the bonds as and when the interest and principal become due and payable and the creation of the reserve therefor required by this article, and to provide for such other expenditures and funds for the system as this article may require. Such rates shall be fixed and revised from time to time as may be necessary to produce these amounts, and it is hereby covenanted and agreed at all times to fix and maintain such rates for services furnished by the system as shall be sufficient to provide for the expenses mentioned in this section. (Comp. Ords. 1987, § 25.060)

For miscellaneous sewer service for which a special rate shall be established, such rates shall be fixed by the village council. (Comp. Ords. 1987, § 25.058)

All sewer service customers will be billed quarterly. All bills must be paid within 20 days from the date of the bill, and ten percent will be added to the amount of the bill if not paid within such period. (Comp. Ords. 1987, § 25.058)

The charges for sewer services which are, under the provisions of Public Act No. 94 of 1933, § 21 (MCL 141.121, MSA 5.2751), made a lien on all premises served thereby, unless notice is given that a tenant is responsible, are hereby recognized to constitute such lien, and whenever any such charge against any piece of property shall be delinquent for six months, the village official in charge of the collection thereof shall certify annually, on March 1 of each year, to the tax assessing officer of the village, the fact of such delinquency. Such charge shall be by him entered upon the next tax roll as a charge against such premises, and shall be collected and the lien therefor enforced in the same manner as general village taxes against such premises are collected and the lien enforced: provided, however, where notice is given that a tenant is responsible for such charges and service as provided by Public Act No. 94 of 1933, § 21 (MCL 141.121, MSA 5.2751), no further service shall be rendered such premises until a cash deposit equal to not less than two quarters' charges shall have been made as security for payment of such charges for service. (Comp. Ords. 1987, § 25.058)

No free service shall be furnished by the sewer system to any person, firm or corporation, public or private, or to any public agency or instrumentality. (Comp. Ords. 1987, § 25.059)

1. (a) The revenues of the sewer system shall be set aside as collected and deposited in a separate depositary account in the Mayville State Bank, Mayville, Michigan, a bank duly qualified to do business in the state, in an account to be designated "Sewage Disposal System Receiving Fund" (referred to in this section as the "receiving fund"), and such revenues so deposited are pledged for the purpose of the following funds and shall be transferred from the receiving fund periodically in the manner and at the times specified in this section:
   1. (1) Operation and maintenance fund. a. Out of the revenues in the receiving fund, there shall be first set aside, commencing with the first quarter of operation of the system, and quarterly thereafter, into a separate depositary account, designated "Operation and Maintenance Fund," a sum sufficient to provide for the payment of the next quarter's expenses of administration and operation of the system and such expenses for the maintenance thereof as may be necessary to preserve the system in good repair and working order, as well as any sums necessary to pay current bills. b. The village council, prior to the commencement of each operating year, shall adopt a budget covering such expenses for each year, and such total expenses shall not exceed the total amount specified in the budget, except by a vote of four-fifths of the members of the village council.
   2. (2) Bond and interest redemption fund. a. There shall next be established and maintained a separate depositary account, designated as the "Bond and Interest Redemption Fund," the moneys on deposit therein from time to time to be used solely for the purpose of paying the principal of and interest upon the bonds authorized by this article. The moneys in the bond and interest redemption fund (including the bond reserve account established in this subsection) shall be kept on deposit with the bank or trust company where the principal and interest on the bonds are currently payable. b. Out of the revenues remaining in the receiving fund, after provision has been made for expenses of operation and maintenance of the system, there shall next be set aside, quarterly, in the bond and interest redemption fund, a sum proportionately sufficient to provide for the payment of the principal of and interest upon all outstanding bonds payable from the revenues of the system as and when the principal and interest become due and payable. Commencing May 1, 1969, the amount so set aside for interest during each quarter of each operating year shall not be less than one-half of the total amount of interest maturing on the following interest payment date. The amount so set aside for principal during each quarter, commencing May 1, 1969, shall be not less than one-quarter of the amount of principal maturing on November 1 of the following year. If there shall be any deficiency in the amount previously required to be set aside, then the amount of such deficiency shall be added to the current requirements. c. There is hereby established in the bond and interest redemption fund a separate account, to be known as the "Bond Reserve Account," into which account there shall be set aside quarterly, after provision has been made for the operation and maintenance fund and current requirements of the bond and interest redemption fund, the sum of $2,000.00 during the fiscal year commencing April 1, 1969, until the bond reserve account shall total $10,000.00. The money in the bond reserve account shall be used solely for the payment of the principal and interest on the bonds as to which there would otherwise be default. If, at any time, it shall be necessary to use moneys in the bond reserve account for such payment, then the moneys so used shall be replaced from the net revenues first received thereafter which are not required by this section to be used for operation and maintenance or for current principal and interest requirements; provided, however, that such bond reserve account shall not be regarded as moneys otherwise appropriated or pledged for the purpose of determining the sufficiency of funds available for such redemption of callable bonds. d. No further payments need be made into the bond and interest redemption fund after enough of the bonds have been retired so that the amount then held in the fund (including the bond reserve account) is equal to the entire amount of principal and interest which will be payable at the time of maturity of all the bonds then remaining outstanding.
   3. (3) Replacement fund. There shall next be established and maintained a separate depositary account, designated the "Replacement Fund," which shall be used solely for the purpose of making major repairs and replacements to the system if needed. There shall be set aside into the fund quarterly, after provision has been made for the operation and maintenance fund and the bond and interest redemption fund (including the bond reserve account), the sum of $1,000.00 during each of the fiscal years commencing April 1, 1969, through April 1, 1972, inclusive, until the replacement fund shall total $4,000.00. If at any time it shall be necessary to use moneys in the fund for such purpose, the moneys so used shall be replaced from the net revenues in the receiving fund which are not required by this section to be used for the operation and maintenance fund or the bond and interest redemption fund (including the bond reserve account).
   4. (4) Improvement fund. There shall next be established and maintained an improvement fund for the purpose of making improvements, extensions and enlargements to the system. There shall be deposited into the fund each quarter, after providing for all of the requirements in subsections (a)(1) through (3) of this section, such sum as the village council shall determine. (5) Surplus moneys. Moneys remaining in the receiving fund at the end of any operating year, after full satisfaction of the requirements of the funds described in subsections (a)(1) through (4) of this section, may be transferred to the bond and interest redemption fund and used for the purpose of calling bonds for redemption, in the manner specified in this section, or transferred to the improvement fund at the option of the village council; provided, however, that if there shall be any deficit in the operation and maintenance fund, the bond and interest redemption fund (including the bond reserve account), or the replacement fund, on account of default in setting aside therein the amounts required by this section, then transfers shall be made from the moneys remaining in the receiving fund at the end of any operating year to such funds, in the priority and order named, to the extent of such deficits. (b) If the moneys in the receiving fund are insufficient to provide for the current requirements of the operation and maintenance fund, or the bond and interest redemption fund, any moneys and/or securities in other funds of the system shall be transferred, first, to the operation and maintenance fund, and, second, to the bond and interest redemption fund, to the extent of any deficit therein. (Comp. Ords. 1987, §§ 25.062, 25.063)

Moneys in any fund or account established by the provisions of this article, including moneys derived from the proceeds of sale of bonds, may be invested in obligations of the United States of America, in the manner and subject to the limitations provided in Public Act No. 94 of 1933 (MCL 141.101 et seq., MSA 5.2731 et seq.), as amended. If such investments are made, the securities representing the investments shall be kept on deposit with the bank or trust company having on deposit the fund from which such purchase was made. Income received from such investments shall be credited to the fund from which such investments were made. (Comp. Ords. 1987, § 25.064) Secs. 70-289—70-310. - Reserved.

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