2006 Code of Virginia § 15.2-5431.25 - Rates and charges

15.2-5431.25. Rates and charges.

A. The authority may fix and revise rates, fees and other charges (whichshall include, but not be limited to, a penalty not to exceed 10 percent ondelinquent accounts, and interest on the principal), subject to theprovisions of this section, for the use of a project or any portion thereofand for the services furnished or to be furnished by the authority, orfacilities incident thereto, owned, operated or maintained by the authority,or facilities incident thereto, for which the authority has issued revenuebonds as authorized by this chapter. Such rates, fees and charges shall be sofixed and revised as to provide funds, with other funds available for suchpurposes, sufficient at all times (i) to pay the cost of maintaining,repairing and operating the project or systems, or facilities incidentthereto, for which such bonds were issued, including reserves for suchpurposes and for replacement and depreciation and necessary extensions, (ii)to pay the principal of and the interest on the revenue bonds as they becomedue and reserves therefor, and (iii) to provide a margin of safety for makingsuch payments. The authority shall charge and collect the rates, fees andcharges so fixed or revised.

B. No rates, fees or charges shall be fixed under subsection A until after apublic hearing at which all of the users of such facilities; the owners,tenants or occupants of property served or to be served thereby; and allothers interested have had an opportunity to be heard concerning the proposedrates, fees and charges. After the adoption by the authority of a resolutionsetting forth the preliminary schedule or schedules fixing and classifyingsuch rates, fees and charges, notice of a public hearing, setting forth theproposed schedule or schedules of rates, fees and charges, shall be given bytwo publications, at least six days apart, in a newspaper having a generalcirculation in the area to be served by such systems at least 60 days beforethe date fixed in such notice for the hearing. The hearing may be adjournedfrom time to time. A copy of the notice shall be mailed to the governingbodies of all localities in which such systems or any part thereof islocated. After the hearing the preliminary schedule or schedules, either asoriginally adopted or as amended, shall be adopted and put into effect.

C. A copy of the schedule or schedules of the final rates, fees and chargesfixed in accordance with subsection B shall be kept on file in the office ofthe clerk or secretary of the governing body of the locality, and shall beopen to inspection by all interested parties. The rates, fees or charges sofixed for any class of users or property served shall be extended to coverany additional properties thereafter served which fall within the same class,without the necessity of a hearing or notice. Any increase in any rates, feesor charges under this section shall be made in the manner provided insubsection B. Any other change or revision of the rates, fees or charges maybe made in the same manner as the rates, fees or charges were originallyestablished as provided in subsection B.

D. Connection fees established by any authority shall be fair and reasonable.Such fees shall be reviewed by the authority periodically and shall beadjusted, if necessary, to assure that they continue to be fair andreasonable. Nothing herein shall affect existing contracts with bondholderswhich are in conflict with any of the foregoing provisions.

(2003, c. 643.)