1. (a) A district coming under this chapter shall furnish reasonably adequate services and facilities. The charge made by the district for a service provided or to be provided, either directly or indirectly, must be nondiscriminatory, reasonable, and just. Every discriminatory, unjust, or unreasonable charge for service is unlawful. A reasonable and just charge for services is a charge that produces sufficient revenue to pay all the legal and other necessary expenses incident to the operation of the water facilities:

   1. (1) including maintenance costs, operating charges, upkeep, repairs, and interest charges on bonds, notes, or other evidences of indebtedness;
   2. (2) providing a sinking fund for the liquidation of bonds, notes, or other evidence of indebtedness;
   3. (3) providing adequate money to be used as working capital, as well as money for making extensions and replacements; and
   4. (4) paying taxes, if any, that are assessed against the water facilities.
2. (b) The rates may include a reasonable profit on the investment, so that the charges produce an income sufficient to maintain the water facilities in a sound physical and financial condition to provide adequate and efficient service. A rate too low to meet these requirements is unlawful.

3. (c) A district and the district's board, officers, and employees:

   1. (1) shall enforce the collection of the rates and charges; and
   2. (2) if necessary, may discontinue water service to a water user for the nonpayment of rates and charges.

4. (d) A district shall make a charge against the property in the district for fire protection furnished by the water facilities, separate from rates and charges for water supplied to users. The receipts from fire protection charges are considered revenues of the water facilities.

   [Pre-1995 Recodification Citation: 13-3-4-5.]

As added by P.L.1-1995, SEC.26.