Scotts Valley Municipal Code Art. V Wastewater Revenue Accounts

Wastewater revenue accounts are hereby established in order to meet the following objectives:

A. To provide for the adequate financing of existing operations at levels that will ensure compliance with all state and federal requirements for effluent quality, wastewater reclamation, sludge disposal or reuse, and all other requirements of agencies having regulatory authority over the operations of the sanitary sewer system;

B. To provide reserve funds for emergency repairs and replacement of equipment;

C. To ensure the orderly expansion or upgrading of the wastewater treatment plant to meet the future growth needs, and goals, of the community;

D. To comply fully with the State Water Resources Control Board's Revenue Program Guidelines for Wastewater Agencies for the financing of grant-funded wastewater treatment projects.

1. Operations and Maintenance Fund.

a. There is established an operations and maintenance (O&M) fund, the purpose which is to pay the annual costs of operating and main the sanitary sewer system. These costs include the costs of labor, power, chemicals, supplies, laboratory control and monitoring, general administration, billing, and incidental items incurred during normal operation. Also included are those expenditures termed ordinary repairs necessary to keep the sanitary sewer system in proper operating condition.

b. The O&M fund shall be funded by wastewater service fees charged to the users of the sanitary sewer system, as such fees are established pursuant to this chapter. Moneys allocated to this account shall not be used for any other purpose than that described above, in accordance with State Water Resources Control Board regulations.

2. Operations Reserve Account. There is established an operations reserve account, within the O&M fund, the purpose of which is to defray the costs of emergencies. The operations reserve account shall be funded by that portion of the wastewater service fees necessary to bring the fund up to a constant ten percent of the amount in the O&M fund. Moneys allocated to this account shall not be used for any other purpose, in accordance with State Water Resources Control Board regulations.

3. Wastewater Treatment Facilities Fund.

a. There is established a wastewater treatment facilities fund, created pursuant to the ordinance establishing development impact mitigation fees, Ordinance No. 143, 7(B), the purpose of which is to provide for adding new process refinements, upgrading treatment units, replacing major structures, and to provide for the future expansion of facilities needed for additional treatment capacity. The wastewater treatment facilities fund shall be funded by sewer hook-up fees and standby fees, as such fees are established pursuant to this chapter.

b. Moneys allocated to this fund may be loaned to other uses, except operations and maintenance, provided that the following conditions are met:

i. It has been established that these funds will not be required for wastewater activities for the period of the loan.

ii. The loan is recorded in the appropriate account with the payback period specifically shown.

iii. The source borrowing the money pays at least as much interest as the wastewater fund would have earned if the money had not been loaned.

(Ord. 79.18 § II.A (part), 1993)