10-1208.   Rates, fees and charges; depreciation or renewal andreplacement fund; reserve fund; annual audit, filing; billing andcollection of sewer service charges; discontinuance of water service.(a) The governing body or other proper officers having the control andmanagement of the utilities of such municipality shall provide for thepayment of such bonds by fixing rates, fees or charges for the use of orservices rendered by such utility, which rates, fees or charges shall besufficient to pay the cost of operation, improvement and maintenance ofthe utility, and provide either a depreciation fund or a renewal andreplacement fund, provide a reserve fund and pay the principal of andthe interest upon such bonds when due. Rates, fees and charges for theuse of or services rendered by any interceptor sewer utility, includingthe cost of construction, alteration, repair or reconstruction of anysuch interceptor sewer utility, shall not be based on strength or volumeof sewage to be carried in any interceptor sewer of such utility. Therates, fees and charges for the use of or services rendered by anysewage disposal plant utility may be based in part upon the strength orvolume of sewage contributed.

      (b)   The municipality shall cause an audit to be made annually by alicensed municipal public accountant or certified public accountant ofthe operation of any utility for which revenue bonds have been issued bythe municipality. If the audit discloses that proper provision has notbeen made for all of the requirements of this section, then thegoverning body or other officers having the control and management ofthe utilities of such municipality shall promptly proceed to cause to becharged for the utility service rendered rates which will adequatelyprovide for the requirements of this section. Within one year after theaudit period of the audit, a copy of the audit report shall be filedwith the clerk of the municipality and shall be open to publicinspection.

      (c)   If the municipality does not own the waterworks system servingit and has instituted sewer service charges and rates for the use of itssanitary sewage system utility under this section, it may contract withany corporation owning the waterworks system serving such municipalityfor the billing and collection of sewer service charges in conjunctionwith the billing and collection of water charges, and such corporationshall have the power to contract for such billing and collection ofsewer service charges. The terms of such contract shall be such as maybe reasonable under the circumstances including the payment ofreasonable compensation for the services rendered in billing andcollecting such sewer service charges and may include a provision thatwater service to any customer using or required by law to use the sewagefacilities of the municipality, except the juvenilecorrectional facility at Atchison,shall be discontinued, at the direction of the municipality, in theevent of such customer's failure to pay sewer service charges, and suchwater company shall have the power to discontinue such water serviceunder such circumstances.

      (d)   If the municipality owns and operates both the waterworks systemand sanitary sewer system serving such municipality and it hasinstituted sewer rates, fees, and charges under this section, it maycombine the billing and collection of the charges for both such utilityservices and may discontinue the water service to any sewer user who maybe delinquent in the payment of sewer service charges.

      History:   L. 1947, ch. 107, § 8; L. 1949, ch. 117, § 4; L.1955, ch. 74, § 2; L. 1959, ch. 63, § 1; L. 1979, ch. 47, § 4;L. 1980, ch. 64, § 1;L. 1996, ch. 229, § 20; July 1, 1997.