Section 369.920  User Charges

a)         In order for the loan agreement to be issued, the Agency must have approved the loan applicant's system of user charges.  The user charge system must be enacted and enforceable before the first loan disbursement can be made.

b)         The Agency shall approve the user charge system in accordance with the following criteria:

1)         For the first year of operation of new facilities, operation, maintenance and replacement costs shall be based upon past experience for existing wastewater treatment works or some other rational method that can be demonstrated to be applicable.

2)         The loan recipient shall review user charges annually and revise the rates periodically to reflect actual wastewater treatment works operation, maintenance and replacement costs.  The Agency may request a report on the status of the user charge system, including projected costs, actual costs, revenue generated and fund balances at any time.

3)         The user charge system shall generate sufficient revenue to offset the cost of all wastewater treatment works operation, maintenance and replacement required to be provided by the loan recipient.

4)         The user charge system must be incorporated in one or more municipal legislative enactments or other appropriate authorizations.  If the project is for a regional treatment works accepting wastewaters from treatment works owned by others, then the subscribers receiving wastewater treatment services from the loan recipient shall have adopted user charge systems.  The user charge systems shall also be incorporated in the appropriate municipal legislative enactments, intergovernmental or service agreements or other appropriate authorizations.

c)         Upon approval of a loan recipient's system of user charges, the implementation and maintenance of the approved system shall become a condition of the loan subject to Section 369.310 (Noncompliance with Loan Procedures) of this Part.

d)         The Agency or its authorized representative shall have access to all books, documents, papers and records of the loan recipient for the purpose of making audit, examination, excerpts and transcriptions in order to ensure compliance with subsection (b).