A. The utility shall establish and collect a monthly capital recovery charge so that each new improvement, development, redevelopment or existing structure that places an additional demand on the public water system bears its equitable share of the cost of said system.

B. Right-of-way and unirrigated nonbuilding tracts shall be exempt from the capital recovery charge.

C. The capital recovery charge shall be based on the cost of the water utility plant-in-service, less the cost of donated facilities, less the cost of city-built local facilities for which direct facilities charges are imposed, plus recoverable interest divided by the customer base as quantified by single-family equivalent units.

D. The capital recovery charge shall be placed on affected properties as a monthly charge for a period of 10 years. Affected property owners, at their discretion, may pay the remaining balance of the charge in full, hereinafter the “remaining balance due,” at any time. In accordance with subsection C of this section, the remaining balance due shall be the sum of all remaining payments less the amounts previously paid within the applicable 10-year period, discounted by the amortization rate.

E. The director or his/her designee is authorized to adjust the capital recovery charge value based upon updated values of the above-described elements.

F. Any capital recovery charge as provided in this section may be waived with respect to construction of shelters or affordable housing projects as found by the director, provided there is nonutility revenue available to reimburse the city for the charges waived. (Ord. 6641 § 2, 2022; Ord. 5963 § 1, 2010.)