Ordinance No. 1090

WHEREAS, the Town of Speedway, Indiana (the "Town"), has heretofore constructed and has in operation sewage works pursuant to IC 36-9-23 et seq. (the "Act") for the purpose of collecting and disposing in a sanitary manner the sewage of the residents and non resident users of the sewage works of the Town; and

WHEREAS, the Town Council of the Town (the "Council") has previously by ordinance established the existing schedule of user rates and charges for sewer service, including those rates and charges for excess strength surcharge rates for biochemical oxygen demand ("BOD"), total oil and grease ("TOG") and suspended solids ("SS"); and

WHEREAS, the Town has employed Crowe Chizek and Company LLP (the "Financial Advisor") to prepare a rate report reviewing the sufficiency of such existing rates and charges; and

WHEREAS, the Financial Advisor has prepared and submitted a rate report dated July 23, 2007, entitled the "Preliminary Surcharge Rate Report" (the "Rate Report") which concluded that the excess strength surcharge rates for BOD, TOG and SS should be $0.25 per pound, rather than the current rate of $0.47 per pound; and

WHEREAS, the Financial Advisor further concluded that the excess strength surcharge rates for BOD, TOG and SS of $0.25 per pound is sufficient to pay (i) all the legal and other necessary expenses incident to the operation of the utility, including maintenance costs, operating charges, upkeep, repairs, depreciation, and (ii) increases in such costs, interest charges on bonds or other obligations of the Town; and

WHEREAS, the Council may change or adjust its existing schedule of fees by ordinance after providing notice and conducting a public hearing pursuant to Ind. Code § 36 9 23 26; and

WHEREAS, the Council desires to adopt by ordinance a just and equitable schedule of fees for sewer services rendered by the Town's sewage works pursuant to Ind. Code § 36 9 23 25; and

WHEREAS, Ind. Code § 36 9 23 25 authorizes the Council to exercise reasonable discretion in adopting different schedules of fees, or making classifications in schedules of fees, based upon variations in the costs, including capital expenditures, of furnishing services to various classes of users or to various locations, or the number of users in various locations; and

WHEREAS, the Council has reviewed and studied the Rate Report prepared by the Financial Advisor and desires to reduce the excess strength surcharge rate for BOD, TOG and SS; and

WHEREAS, the Clerk Treasurer of the Town has given notice of the public hearing on proposed rates as provided for in Ind. Code § 36 9 23 26; and

WHEREAS, the public hearing was held on August 13, 2007, at which time testimony from interested persons was heard as provided for in Ind. Code § 36 9 23 26.

NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF SPEEDWAY, INDIANA:

Section 1. The Council hereby finds and determines that, based upon the Rate Report, the existing excess strength surcharge rate for BOD, TOG and SS shall be reduced from $0.47 per pound to $0.25 per pound, which is sufficient to pay (i) all the legal and other necessary expenses incident to the operation of the utility, including maintenance costs, operating charges, upkeep, repairs, depreciation, and (ii) increases in such costs, interest charges on bonds or other obligations of the Town.

Section 2. The Council finds and determines that the proposed rates and charges as set forth in the Rate Report prepared by the Financial Advisor are just and equitable and therefore should be adopted.

Section 3. Section 13.04.040 of the Speedway Municipal Code is hereby amended as follows:

"13.04.040 Water usage schedule. The water usage schedule for excess strength surcharge shall be determined as follows:

Excess Strength Surcharge
(Rate per Pound) Rates

BOD $0.25
Total Oil and Grease $0.25
Suspended Solids $0.25
Unmetered Users $13.79

Two or More Businesses or Dwellings on a Single Meter

Additional Charge for Each Unit Served through a Single Water Meter: $2.84