CHAPTER 11. RATES AND CHARGES
IC 13-26-11
Chapter 11. Rates and Charges
IC 13-26-11-1
Waterworks
Sec. 1. The rates and charges for a waterworks may be determinedbased on the following:
(1) A flat charge for each connection.
(2) The amount of water consumed.
(3) The size of the meter or connection.
(4) Whether the property served has been or will be required topay separately for the cost of any of the facilities of the works.
(5) A combination of these or other factors that the boarddetermines is necessary to establish just and equitable rates andcharges.
As added by P.L.1-1996, SEC.16.
IC 13-26-11-2
Sewage works; campgrounds
Sec. 2. (a) Except as provided in subsection (b), the rates orcharges for a sewage works may be determined based on thefollowing:
(1) A flat charge for each connection.
(2) The amount of water used on the premises.
(3) The number and size of water outlets on the premises.
(4) The amount, strength, or character of sewage dischargedinto the sewers.
(5) The size of sewer connections.
(6) Whether the property served has been or will be required topay separately for the cost of any of the facilities of the works.
(7) A combination of these or other factors that the boarddetermines is necessary to establish nondiscriminatory, just, andequitable rates or charges.
(b) If a campground is billed for sewage service at a flat rateunder subsection (a), the campground may instead elect to be billedfor the sewage service under this subsection by installing, at thecampground's expense, a meter to measure the actual amount ofsewage discharged by the campground into the sewers. If acampground elects to be billed by use of a meter:
(1) the rate charged by a board for the metered sewage servicemay not exceed the rate charged to residential customers forequivalent usage; and
(2) the amount charged by a board for the campground'smonthly sewage service for the period beginning September 1and ending May 31 must be equal to the greater of:
(A) the actual amount that would be charged for the sewagedischarged during the month by the campground asmeasured by the meter; or
(B) the lowest monthly charge paid by the campground forsewage service during the previous period beginning June 1
and ending August 31.
(c) If a campground does not install a meter under subsection (b)and is billed for sewage service at a flat rate under subsection (a), fora calendar year beginning after December 31, 2004, each campsiteat the campground may not equal more than one-third (1/3) of one(1) resident equivalent unit. The basic monthly charge for thecampground's sewage service must be equal to the number of thecampground's resident equivalent units multiplied by the rate chargedby the board for a resident unit.
(d) The board may impose additional charges on a campgroundunder subsections (b) and (c) if the board incurs additional costs thatare caused by any unique factors that apply to providing sewageservice for the campground, including, but not limited to:
(1) the installation of:
(A) oversized pipe; or
(B) any other unique equipment;
necessary to provide sewage service for the campground; and
(2) concentrations of biochemical oxygen demand (BOD) thatexceed federal pollutant standards.
As added by P.L.1-1996, SEC.16. Amended by P.L.239-2003, SEC.1;P.L.189-2005, SEC.5.
IC 13-26-11-2.1
Campground rates; appeal to utility regulatory commission
Sec. 2.1. (a) As used in this section, "commission" refers to theIndiana utility regulatory commission created by IC 8-1-1-2.
(b) This section applies to an owner or operator of a campgrounddescribed in section 2(b) or 2(c) of this chapter who disputes:
(1) that the campground is being billed at rates charged toresidential customers for equivalent usage as required bysection 2(b)(1) of this chapter;
(2) the number of resident equivalent units determined for thecampground under section 2(c) of this chapter; or
(3) that any additional charges imposed on the campgroundunder section 2(d) of this chapter are reasonable ornondiscriminatory.
(c) If an owner or operator:
(1) makes a good faith attempt to resolve a disputed matterdescribed in subsection (b)(1) through (b)(3) through:
(A) any grievance or complaint procedure prescribed by theboard; or
(B) other negotiations with the board; and
(2) is dissatisfied with the board's proposed disposition of thematter;
the owner or operator may file with the commission a written requestfor review of the disputed matter and the board's proposeddisposition of the matter to be conducted by the commission'sappeals division established under IC 8-1-2-34.5(b). The owner oroperator must file a request under this section with the commissionand the board not later than seven (7) days after receiving notice of
the board's proposed disposition of the matter.
(d) The commission's appeals division shall provide an informalreview of the disputed matter. The review must include a prompt andthorough investigation of the dispute. Upon request by either party,or on the division's own motion, the division shall require the partiesto attend a conference on the matter at a date, time, and placedetermined by the division.
(e) In any case in which the basic monthly charge for acampground's sewage service is in dispute, the owner or operatorshall pay, on any disputed bill issued while a review under thissection is pending, the basic monthly charge billed during the yearimmediately preceding the year in which the first disputed bill isissued. If the basic monthly charge paid while the review is pendingexceeds any monthly charge determined by the commission in adecision issued under subsection (f), the board shall refund or creditthe excess amount paid to the owner or operator. If the basic monthlycharge paid while the review is pending is less than any monthlycharge determined by the appeals division or commission in adecision issued under subsection (f), the owner or operator shall paythe board the difference owed.
(f) After conducting the review required under subsection (d), theappeals division shall issue a written decision resolving the disputedmatter. The division shall send a copy of the decision to:
(1) the owner or operator of the campground; and
(2) the board;
by United States mail. Not later than seven (7) days after receivingthe written decision of the appeals division, either party may makea written request for the dispute to be formally docketed as aproceeding before the commission. Subject to the right of either partyto an appeal under IC 8-1-3, the decision of the commission is final.
(g) The commission shall maintain a record of all requests for areview made under this section. The record must include:
(1) a copy of the appeals division's and commission's decisionunder subsection (f) for each dispute filed; and
(2) any other documents filed with the appeals division orcommission under this section.
The record must be made available for public inspection and copyingin the office of the commission during regular business hours underIC 5-14-3.
(h) The right of a campground owner or operator to request areview under this section is in addition to the right of thecampground owner or operator to file a petition under section 15 ofthis chapter as a freeholder of the district.
(i) The commission may adopt rules under IC 4-22-2 to implementthis section.
As added by P.L.189-2005, SEC.6.
IC 13-26-11-3
Solid waste disposal
Sec. 3. The rates or charges for solid waste disposal and recovery
systems may be determined based on the following:
(1) A flat charge for each residence or building in use in thedistrict.
(2) On the weight of the refuse received.
(3) On the hazardous character of the waste received.
(4) On a combination of the weight and hazardous character ofthe waste received.
As added by P.L.1-1996, SEC.16.
IC 13-26-11-4
Services of water, sewer, or solid waste disposal
Sec. 4. The rates and charges for services of a water, sewer, orsolid waste disposal or recovery system do not have to be uniformthroughout the district or for all users. The board may exercisereasonable discretion in:
(1) adopting different schedules of rates and charges; or
(2) making classifications in schedules of rates and charges:
(A) based upon variations in the costs of furnishing theservices, including capital expenditures required, to variousclasses of users or to various locations in the district; or
(B) where there are variations in the number of users invarious locations in the district.
As added by P.L.1-1996, SEC.16.
IC 13-26-11-5
Billing and collection
Sec. 5. A district may bill and collect rates and charges for theservices to be provided after the contract for construction of asewage works has been let and actual work commenced in an amountsufficient to meet the interest on the revenue bonds and otherexpenses payable before the completion of the works.
As added by P.L.1-1996, SEC.16.
IC 13-26-11-6
Sewage works beneficial to lots, land, or buildings
Sec. 6. Unless the board finds and directs otherwise, the sewageworks are considered to benefit every:
(1) lot;
(2) parcel of land; or
(3) building;
connected or to be connected under the terms of an ordinancerequiring connections with the sewer system of the district as a resultof construction work under the contract. The rates or charges shall bebilled and collected accordingly.
As added by P.L.1-1996, SEC.16.
IC 13-26-11-7
Connection charges; liens
Sec. 7. (a) If a district constructs sewers or water mains as a partof the construction of the works that are suitable for use as a local or
lateral sewer or main by abutting or adjoining property, the districtmay charge for the connection on the basis of the pro rata cost ofconstruction of a local or lateral sewer or water main sufficient toserve the property.
(b) Each property owner must agree to pay for the connection inmaking an application for service. If payment is not made as agreed,the payment constitutes a lien on the property for which theconnection is made.
(c) The proceeds of the connection charges may be handled as:
(1) net revenues of the works; or
(2) payments toward the cost of construction or futureimprovements.
As added by P.L.1-1996, SEC.16.
IC 13-26-11-8
Rates and charges
Sec. 8. (a) The board shall, by ordinance, establish just andequitable rates or charges for the use of and the service provided bya works. The rates or charges are payable by the owner of each lot,parcel of land, or building that:
(1) is connected with and uses a works; or
(2) in any way uses or is served by a works.
(b) Subject to section 15 of this chapter, the board mayperiodically change and readjust the rates or charges as provided inthis article.
As added by P.L.1-1996, SEC.16. Amended by P.L.221-2007,SEC.19.
IC 13-26-11-9
Equitable rates; determination
Sec. 9. (a) Just and equitable rates and charges are those thatproduce sufficient revenue to:
(1) pay all expenses incident to the operation of the works,including maintenance cost, operating charges, upkeep, repairs,and interest charges on bonds or other obligations;
(2) provide the sinking fund for the liquidation of bonds orother evidence of indebtedness and reserves against default inthe payment of interest and principal of bonds; and
(3) provide adequate money to be used as working capital, aswell as money for making improvements, additions, extensions,and replacements.
(b) Rates and charges too low to meet the financial requirementsdescribed in subsection (a) are unlawful. The initial rates and chargesestablished after notice and hearing under this article are prima faciejust and equitable.
As added by P.L.1-1996, SEC.16.
IC 13-26-11-10
Revenue of works
Sec. 10. Revenue collected under sections 8 through 14 of this
chapter is revenue of the works.
As added by P.L.1-1996, SEC.16.
IC 13-26-11-11
Public hearing
Sec. 11. The initial rates or charges may be established only aftera public hearing at which all:
(1) the users of the works and owners of property served or tobe served; and
(2) others interested;
have an opportunity to be heard concerning the proposed rates orcharges.
As added by P.L.1-1996, SEC.16.
IC 13-26-11-12
Notice
Sec. 12. After introduction of the ordinance initially fixing ratesor charges but before the ordinance is finally adopted, notice of thehearing setting forth the proposed schedule of the rates or chargesmust be given by publication one (1) time each week for two (2)weeks in a newspaper of general circulation in each of the countieswith territory in the district. The last publication must be at leastseven (7) days before the date fixed in the notice for the hearing. Thehearing may be adjourned as necessary.
As added by P.L.1-1996, SEC.16.
IC 13-26-11-13
Effective date of ordinance establishing initial rates or charges;schedule of rates open to public
Sec. 13. (a) The ordinance establishing the initial rates or charges,either as:
(1) originally introduced; or
(2) modified and amended;
shall be passed and put into effect after the hearing.
(b) A copy of the schedule of the rates and charges establishedmust be:
(1) kept on file in the office of the district; and
(2) open to public inspection.
As added by P.L.1-1996, SEC.16.
IC 13-26-11-14
Extension of rates and charges to cover additional premises;changes or readjustments
Sec. 14. (a) The rates or charges established for a class of users ofproperty served shall be extended to cover any additional premisesserved after the rates or charges are established that are in the sameclass, without the necessity of hearing or notice.
(b) Subject to section 15 of this chapter, a change or readjustmentof the rates or charges may be made in the same manner as the ratesor charges were originally established.As added by P.L.1-1996, SEC.16. Amended by P.L.221-2007,SEC.20.
IC 13-26-11-15
Regional sewage district authority; notice of rate increase;objecting petition; hearing; order and appeal
Sec. 15. (a) A district authority is established in each regionalsewage district established under this article.
(b) The district authority of a regional sewage district consists ofthe following:
(1) In the case of a regional sewage district located in one (1)county:
(A) except as provided in clause (B), the county executive ofthat county; or
(B) if the members of the county executive are trustees ofthe regional sewage district, the members of the countyfiscal body.
(2) In the case of a regional sewage district located in more thanone (1) county, one (1) county executive member, appointed bythat member's county executive, from each county in which thedistrict is located.
However, a person who serves on the board of trustees of a districtmay not be a member of the district authority.
(c) If a district adopts an ordinance increasing sewer rates andcharges at a rate that is greater than five percent (5%) per year, ascalculated from the rates and charges in effect from the date of thedistrict's last rate increase before January 1, 2001, the district shallmail, either separately or along with a periodic billing statement, anotice of the new rates and charges to each user of the sewer systemwho is affected by the increase. The notice:
(1) shall be mailed not later than seven (7) days after the districtadopts the ordinance increasing the rates and charges; and
(2) must include a statement of a freeholder's rights under thissection.
(d) If subsection (c) applies, fifty (50) freeholders of the districtor ten percent (10%) of the district's freeholders, whichever is fewer,may file a written petition objecting to the rates and charges of thedistrict. A petition filed under this subsection must:
(1) contain the name and address of each petitioner;
(2) be filed with a member of the district authority, in thecounty where at least one (1) petitioner resides, not later thanthirty (30) days after the district adopts the ordinanceestablishing the rates and charges; and
(3) set forth the grounds for the freeholders' objection.
If a petition meeting the requirements of this subsection is filed, thedistrict authority shall investigate and conduct a public hearing onthe petition. If more than one (1) petition concerning a particularincrease in rates and charges is filed, the district authority shallconsider the objections set forth in all the petitions at the same publichearing. (e) The district authority shall set the matter for public hearing notless than ten (10) business days but not later than twenty (20)business days after the petition has been filed. The district authorityshall send notice of the hearing by certified mail to the district andthe petitioner and publish the notice of the hearing in a newspaper ofgeneral circulation in each county in the district.
(f) Upon the date fixed in the notice, the district authority shallhear the evidence produced and determine whether the increasedsewer rates and charges established by the board by ordinance arejust and equitable rates and charges, according to the standards setforth in section 9 of this chapter. The district authority, by a majorityvote, shall:
(1) sustain the ordinance establishing the rates and charges;
(2) sustain the petition; or
(3) make any other ruling appropriate in the matter.
(g) The order of the district authority may be appealed by thedistrict or a petitioner to the circuit court of the county in which thedistrict is located. The court shall try the appeal without a jury andshall determine one (1) or both of the following:
(1) Whether the board of trustees of the district, in adopting theordinance increasing sewer rates and charges, followed theprocedure required by this chapter.
(2) Whether the increased sewer rates and charges establishedby the board by ordinance are just and equitable rates andcharges, according to the standards set forth in section 9 of thischapter.
Either party may appeal the circuit court's decision in the samemanner that other civil cases may be appealed.
As added by P.L.193-2001, SEC.4. Amended by P.L.1-2002, SEC.68;P.L.221-2007, SEC.21.