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Although the total project cost estimate shown in Section Y.B. <br />does'not include a line item for operation costs, some funds must <br />be placed in the operations account to meet startup expenses. After <br />bids have been received for the construction work, the project cost <br />summary should be revised to divert surplus funds to the operations <br />account. If construction bids exceed the estimates, it may be <br />necessary to delete sections of the planned distribution system <br />extensions for this purpose. <br />D Rate Schedules and Other Charges <br />1._ Deposits and Cut-offs <br />A deposit'of $15.00 should be collected from system customers <br />for each water meter installed to assure payment for service. <br />The deposit should be collected from existing customers prior <br />to system renovation to assure that such customers intend to <br />retain service after the new rates go into effect. Water and <br />sewer bills remaining unpaid 10 days after issuance should be <br />charged a 10% penalty, and water service` should be terminated <br />if the water or sewer bill is not paid within 30 days. No charge <br />should be made for service termination, but a reconnection fee of <br />$20.00 should be collected prior to reinstalling a water service <br />that has been terminated. <br />2. Water and Sewer Rates <br />The following water and sewer rate schedule is recommended <br />to generate adequate system income to meet the annual budget i <br />demand. <br />• 16 <br />OCT 201977 <br />BDoK 31 m,F 389 <br />