(a) A waterworks lease may provide that as a part of the lease rental for the waterworks facilities the lessee agrees to:

1. (1) pay all property taxes and assessments levied against or on account of the leased facilities;
2. (2) maintain insurance on the leased facilities for the benefit of the lessor; and
3. (3) assume all responsibilities for the operation, maintenance, repair, alterations, and additions of the leased facilities.

(c) The lessee may establish, fix, bill, and collect rates and charges with respect to the property and users in the area served by the leased facilities that are sufficient:

1. (1) to pay the costs of operation, maintenance, repair, alterations, depreciation, and additions of the leased facilities; and

2. (2) to pay the lease rental as it becomes due.

   Rates and charges too low to meet these requirements are unlawful. These rates and charges are subject to approval in accordance with IC 8-1.5-3-8 .

   As added by Acts 1982, P.L.74, SEC.1.