Section NR 162.26 - Requirements for a user charge system(1) GENERAL. Any user charge system and applicable ordinances adopted by a recipient under s. NR 216.07 (3) (a) shall be maintained for the useful life of a storm water treatment works or BMP. The applicant shall submit user charge information, if applicable as described in sub. (2), to the department and shall certify to the department that the user charge system meets all of the applicable requirements in this section.(2) APPLICABILITY. (a) A user charge system is required under this chapter for any storm water project for which the applicant is securing the loan with a pledge of utility revenues.(b) A user charge system is required of the applicant for any storm water project that requires an intermunicipal agreement under s. NR 162.24 (3) (h).(3) USER CHARGE SYSTEM REQUIREMENTS. Any user charge system under this section shall do all of the following: (a) Require that each user or user class pays its proportionate share of operation and maintenance costs, including replacement costs, of the storm water treatment works or BMP within the recipient's service area.(b) Provide that the costs of operation and maintenance for all flow not directly attributable to users be distributed proportionally among all users of the recipient's storm water treatment works or BMP.(c) Require that the charges for users or user classes generate sufficient revenue to pay costs identified in par. (e) 2. and 3.(d) Require that the recipient establish an equipment replacement fund, maintain the equipment replacement fund as a separate fund of the municipality, and make deposits to this fund on an annual basis or maintain a balance acceptable to the department. This fund is to be used for the costs of replacing equipment related to the storm water treatment works or BMP, or conducting maintenance of a runoff treatment works or BMP. The municipality may also use the equipment replacement fund for unexpected unbudgeted costs incurred for continuing effective operations of the treatment works or BMP. The municipality shall periodically make appropriate adjustments to the equipment replacement fund deposit schedule or balance, including adjustments needed to bring the fund balance back up following an expenditure from the fund.(e) Establish a financial management system that accounts for all of the following:2. Costs of operations and maintenance of the storm water treatment works or BMP, including an appropriate amount of money to be deposited annually into the equipment replacement fund.3. Debt service costs, including debt service reserves, and debt coverage requirements, if applicable. In this subdivision, "debt coverage" means the ratio of net revenue available for debt service to the average annual debt service requirements of an issue of revenue bonds.(f) Require the review, at least once every 2 years, of the runoff contribution of users and user classes, the total costs of operations and maintenance of the storm water treatment works or BMP, and the user charge system.(g) Provide that each user is notified, at least annually, in conjunction with a regular bill, of the rate of charge attributable to service provided by the storm water treatment works or BMP.(h) Be based on actual or estimated use except as provided for under s. 281.58 (14) (b) 7, Stats.(4) MUNICIPAL RESPONSIBILITIES. The municipality shall do all of the following: (a) Incorporate the user charge system, if applicable, in one or more municipal ordinances or other legislative enactments, and make reference to the user charge system or systems in intermunicipal agreements if the project serves more than one municipality.(b) Terminate any term or condition of any pre-existing agreement or contract between the recipient and a user that is inconsistent with the requirements of this section.(c) Maintain records to document compliance with this section.(d) For a runoff treatment works or BMP, demonstrate adequate legal authority established by statute, ordinance, or series of contracts to meet the provisions of s. NR 216.07 (6).(5) DEPARTMENT REVIEW. The department may annually review a recipient's user charge system to ensure that it continues to meet the requirements of this section.Wis. Admin. Code Department of Natural Resources NR 162.26
Adopted by, CR 14-043: cr. Register June 2015 No. 714, eff.7/1/2015.Adopted by, CR 22-045: cr. Register October 2023 No. 814, eff. 11/1/2023