§ 110-128. Revenue generation system.

(a)

For purposes of this article, a revenue generation system is required for all state or EPA construction grant assistance. For a step 3 grant, an approved revenue generation system is a grant application prerequisite. With a step 2+3 grant, approval must be obtained prior to initiating construction procurement and prior to any grant payment. The revenue generation system may be updated as necessary to reflect changing conditions, but it shall remain in effect in conformance with this section.

(b)

For federal grants, the revenue generation system shall consist of the user charge system required under F.A.C. 17-50.015(2)(i).

(c)

For state grants, including state awards for project segments, the revenue generation system shall be implemented by ordinance or other binding enactment before the initiation of operation of the complete grant funded treatment works or payment of more than 80 percent of grant funds is requested by the grantee, whichever occurs first. The revenue generation system shall include the user charge system required under F.A.C. 17-50.015(2)(i) or (j) and other charges imposed by the county which include development impact fees, connection fees and bulk sewage treatment agreements. The revenue generation system shall be designed to produce adequate revenue for the following:

(1)

Operation and maintenance, including replacement of equipment, accessories or appurtenances, during the design life of all treatment facilities necessary to maintain design capacity and performance of the sewer system; and

(2)

A sewer system capital improvement account to accumulate the equivalent future value of the grant amount as adjusted for inflationary cost increases. For the purpose of this subsection, accumulation of the equivalent future value of the grant amount shall mean total revenue collections and appreciation of such amount. Sewer system shall mean county sanitary sewer facilities; capital improvement shall not include the replacement or repair of equipment, accessories or appurtenances necessary to maintain design capacity and performance during the design life of all treatment facilities. However, capital improvement may include such repair and replacement if they are part of a treatment plant or pumping station capacity expansion or upgrade necessary to meet more stringent effluent limitations required by a regulatory agency or are necessitated as the result of manmade or natural disasters. Deposits and withdrawals from the account shall be governed by the following:

a.

Revenue shall be deposited annually or, at the county's election, on a more frequent basis into the sewer system capital improvement account not later than the end of each one-year period beginning with the date of initiation of operation of the complete grant funded treatment facilities. The annual deposits plus investment income are intended to accumulate the equivalent future value, based on the projected annual inflation rate of 7.8 percent, of the grant amount during the design life of the grant funded project. The amount of the required yearly deposit shall be determined according to the following formula:

D = G ×

i(1 + i) DL _____     (1 + i)DL-1

 

Where:

D	=	The amount of the total yearly deposit
G	=	The grant amount
DL	=	The design life, in years, of the grant funded project and
i	=	The projected annual inflation rate, which is set at 7.8 percent.

 

b.

Revenue may also be deposited on other than an annual basis provided the total amount deposited is equal to or greater than the sum of the deposits required at that time. Prepayments to the account are allowable.

c.

The county may terminate deposits to the account when the sum of all deposits exceeds or is equal to the amount determined by multiplying "DL" by "D," where "DL" and "D" are as described in subsection (c)(2)a of this section.

d.

The accrued funds shall be used only for sanitary sewer system capital improvements and may be withdrawn and used any time for this purpose. Since such withdrawn funds represent previously collected revenues and income earned thereon, the amount of withdrawn funds need not be replaced or returned to the capital improvement account.

e.

Any part of the sewer system capital improvement account may be included within a pooled cash system for investment purposes or within a capital improvement account under a bond program, provided it is pledged solely to sewer system capital improvements and its identity is maintained through separate accounting. The sewer system capital improvement account shall not be pledged or used for any other purposes. This subsection shall not authorize any deviation from the requirement of this section of bond covenants.

f.

The grant recipient shall submit to the bureau, for each fiscal year, certification by a certified public accountant that the sewer system capital improvement account is maintained in accordance with this section.

(d)

Revenue required under subsection (c)(1) of this section shall be generated via a user charge system established pursuant to F.A.C. 17-50.015(2)(i) or (j). Revenue required under subsection (c)(1) of this section may be generated from any source.

(Code 1970, § 26-95.7; Ord. No. 88-07, § 1, 3-15-88)