(a) Using sewer rates.

1. (1) Before enactment, the applicant shall submit a proposed user charge ordinance and rate structure documentation establishing the rates that will be charged for each class of sewer customers.
2. (2) Upon approval of the ordinance, the applicant shall enact the ordinance according to state law.
3. (3) User charge ordinances must meet the following minimum requirements:

(i) Each user within a class must pay its proportionate share of operation, maintenance, and replacement costs;

1. (ii) Each user within a class must pay its proportionate contribution to wastewater loading;

   1. (iii) An adequate system must be in place to charge above-average-strength waste dischargers;
   2. (iv) The ordinance must:

(b) (b) Specify the penalty for nonpayment; and

1. (c) (c) Describe the procedures for appealing a bill;

   1. (v)

(b) (b) If the annual review shows that the rate structure has to be modified, the borrower will submit a copy of the proposed rate structure for the commission staff's approval before enactment of the ordinance; and

1. (vi) All these requirements must be met until the loan is completely repaid.

(b) Using ad valorem tax. If the applicant is proposing to levy ad valorem taxes to pay debt service, the following information must be furnished:

1. (1) The estimated or actual assessed valuation of taxable property and the ratio of assessed valuation to actual market value in the specified year;
2. (2) The proposed and maximum tax rate permitted by law per one hundred sixty dollars ($160) of assessed valuation;
3. (3) The estimated dollar amount of taxes to be collected for CWRLF debt service; and

4. (4)

   1. (A) If the applicant has bonds outstanding that are payable wholly or in part from ad valorem taxes, a copy of each bond issue with amortization schedule shall be furnished.

      1. (B) The current rate of ad valorem taxes levied for all purposes must be provided and the actual amount of dollars collected.