§ 50.03. DEFERRED PAYMENT PLAN.

(A)

It is the intent of this Section to establish a deferred payment plan whereby certain residents residing on existing residentially developed property within the corporate limits of the City, which have existing wells and/or septic tanks, who are either required to connect to the combined public utility or elect to have water and/or sewer service provided by the combined public utility (herein such residents are referred to as the developed unserved residential customers), who exist now or will exist in the future while this plan is in effect, are, subject to the provisions of this Section, offered the option to pay the required water and/or sewer connection charges imposed pursuant to Section 52.31 or Section 53.130(B) of this Code, and meter installation charges imposed pursuant to Section 52.32 of this Code.

(B)

This deferred payment plan shall not constitute an indebtedness of the City within the meaning of any constitutional, statutory, or other provision or limitation. No moneys from any of the City's general fund shall be encumbered, appropriated, or used in any fashion to subsidize or make up for any deficiency under this deferred payment plan.

(C)

At the time a developed unserved residential customer is required to pay the appropriate water and/or sewer connection charges, and meter installation charges, such customer will have the option of electing to pay all or any part of such connection charges and meter installation charges over a sixty-month period with sixty (60) equal payments, the first installment beginning in the calendar month the first deferred installment payment appears on the customer's utility bill. Such deferred installment payment will be due and payable at the same time other amounts appearing on the customer's utility bill are due and payable. Interest shall be charged on the amount deferred payable with each monthly installment payment at a rate which initially shall be the lesser of the legal rate permitted by law or eighteen (18) percent per annum simple interest.

(D)

The City reserves the right to increase or decrease the interest rate under this deferred payment plan, depending on certain factors including, but not limited to, the number of participants in the plan, the rate of prepayment, and delinquencies. Any increase would be applicable only to new customers participating in the plan.

(E)

Each developed unserved residential customer shall have the option to prepay the remaining principal balance of the deferred charges and fees in full at any time. Partial payments shall not be permitted.

(F)

If all or any part of the residential dwelling unit of the developed unserved residential customer or an interest therein is sold or transferred, excluding the creation of a first or second mortgage lien; a transfer by devise, descent, or by operation of law upon the death of a joint tenant; or the grant of any leasehold interest of three (3) years or less not containing an option to purchase, the City may, at the City's option, declare the full principal balance, plus accrued interest due and owing under this deferred payment plan, to be immediately due and payable.

(G)

A developed unserved residential customer may elect to participate in this deferred payment plan by executing a utility billing paying agreement in a form approved by the City Commission. Upon executing such agreement and paying the required deposit for water and/or sewer service, the developed unserved residential customer will be connected to the combined public utility. Until all deferred water and/or sewer connection charges and meter installation charges are paid in full, together with accrued interest to date of payment, the City shall record and maintain with the Clerk of the County Circuit Court a lien against the residential dwelling unit. The utility billing paying agreement shall clearly state, among other particulars, the terms of such deferred payment, including the actual rate of interest, that a lien will be recorded against the residential dwelling unit, and that, in the event of a default under the agreement, the City will enforce such lien in the manner permitted by law. The water and/or sewer connection charges and meter installation charges in effect at the time a developed unserved residential customer elects to participate in this deferred payment plan shall be the applicable charges and fees payable under the plan.

(H)

In the event that any developed unserved residential customer shall fail to make payment under the deferred payment plan when such payment is due, the City, upon eighteen (18) days' prior written notice, shall have the right to terminate water service in accordance with Section 52.51.

(Ord. No. 152-88, passed 11/22/88)