TITLE 46
Waters and Navigation
CHAPTER 46-30
Public Water Supply Systems
SECTION 46-30-4
§ 46-30-4 Financial responsibility.
(a) The financial obligation for the upgrading of the public water supply
system to be annexed and the continued management and operational
responsibility to bring that system into compliance with the applicable
regulations and on parity with the existing facilities of the governing agency
must be fairly and equitably allocated to the new customers by identifying:
(1) Capital costs;
(2) Operational expenses;
(3) Management support;
and adding the annexation fee to the governing agency's
existing rate structure currently in effect to be applied to the customer's
accounts, to be annexed.
(b)(1) Each year the annexation fee to be paid by the new
customers shall be added to the rate apportioned to the existing customers of
the governing agency and shall represent the amortized cost of the capital
expenditures and the appropriate ongoing operational costs adjusted for
inflation. The annexation fee shall in no event be less than ten percent (10%)
the rate levied on the pre-annexation customer base, nor shall it be more than
one hundred percent (100%) of the pre-annexation rate. This legislation is not
intended to limit the governing agency from recovering all costs of service
from its basic customer base. The annexation fee shall constitute a part of the
cost of annexation and shall also be an allocated portion of the cost of
annexation and become a debt of each customer from the small public water
supply system to the governing agency and be collectible in the same manner and
have the benefit of any lien provided for the amounts due for water charges
from the small public water supply system to the governing agency. Subject to
the provisions of § 39-1.1-1 for those small public water supply systems
which are public utilities, all governing agencies may terminate service for
failure of the customer of a small public water supply system to pay the
annexation fee.
(2) It shall not be necessary for any small public water
supply system or governing agency whose rates may be regulated by the public
utilities commission, pursuant to chapter 1 of title 39, to obtain approval
from the commission for billing of the annexation fee. The public utilities
commission shall not be required, in determining rates for any governing agency
or small public water supply system hereunder, to consider the annexation fees
billed hereunder when determining revenue requirements for the governing agency
or public water supply system.
(c) The annexation fee shall terminate when the contractual
obligation for amortizing the upgrading of the system petitioning annexation
has been discharged or no later than thirty (30) years from the date of
financing said improvements, whichever comes first.
History of Section.
(P.L. 1995, ch. 267, § 1.)