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Chapter XIV

Municipal Utilities

Section 14.1.  Management of Municipal Utilities.

       All municipally owned or operated utilities shall be administered as a regular department of the City government under the management and supervision of the City Manager. 

Section 14.2.  Sale of Utility Property.

       The City may sell, exchange, or otherwise dispose of, at any time, any property, fixtures, or equipment constituting part of the City's utility plants or systems if, in the judgment of {the} Council, the sale, exchange, or other disposition will result in improvement in the capacity, efficiency, or service of the utility plants or systems.

Section 14.3.  Use of Water Outside of City.

       The City Council is authorized to lease water and water rights, including treated, potable water, for use outside the City limits, provided the following two (2) conditions are met in any such leases:

(a)The City shall retain the power to limit deliveries of water in order to prevent a shortage of water to the users of domestic water within the City limits.

(b)Lease payments shall be sufficient to:

(1)Reimburse the water fund for all operation and maintenance expenses attributable to the water leased;

(2)provide an additional amount to be determined by the City Council for payment of water debt outstanding; and

(3)provide a return to the water fund of the City for the total investment of the City in its water properties and facilities.  Such payments may include charges in the nature of initial tap-on fees.

       In addition to the foregoing leasing power, the City Council is authorized to enter into short-term contracts to provide water outside the City; provided, the term of any such contract shall not extend for more than one (1) year and the City Council shall determine that an emergency exists, or that such contract may reasonably be expected to lead to a long-term water lease, or annexation of the property being served under such contract.

       The City Council may require as a condition to any water lease or service outside the City limits that the owners of the property being served shall petition for annexation if property becomes eligible therefor.  (As amended 11-2-65)

Section 14.4.  Rates.

       The Council shall have the power to fix from time to time such just and reasonable rates and other charges as may be deemed advisable for supplying the inhabitants of the City and others with such public utility services as the City may provide.  There shall be no discrimination in such rates within any classification of users thereof, nor shall free service be permitted.  Higher rates may be charged for service outside the corporate limits of the City.

Section 14.5.  Utility Rates and Charges - Collection.

       The Council shall provide by ordinance for the collection of all public utility rates and charges of the City.  Such ordinances shall provide at least:

(a)That the City shall have as security for the collection of such utility rates and charges a lien upon the real property supplied by such utility, which lien shall become effective immediately upon the supplying of such utility service and shall be enforced in the manner provided in such ordinance.

(b)The terms and conditions under which utility services may be discontinued in case of delinquency in paying such rates or charges.

(c)That suit may be instituted by the City before a competent tribunal for the collection of such rates or charges.

Section 14.6.  Utility Finances.

       The rates and charges for any municipal public utility for the furnishing of water, light, heat, power, gas or sewage treatment and rubbish and garbage disposal shall be so fixed as to at least meet all the operating costs of such utility.

       Transactions pertaining to the ownership and operation by the City of each public utility shall be recorded in a separate group of accounts under an appropriate fund caption, which accounts shall be classified in accordance with generally accepted utility accounting practice.  Charges for all service furnished to, or rendered by, other City departments or agencies shall be recorded.  An annual report shall be prepared to show fairly the financial position of each utility and the results of its operation, which report shall be available for inspection at the office of the Clerk.