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5. Rates Outside City Limits: Rates due and payable by each water user located beyond the territorial boundaries of the City shall be determined by special contract. 6. Unconnected Service Pipe: a. Where a service pipe is connected to the stop box and laid into the building with no intention of connecting to the building piping for use immediately, there shall be the same minimum rates charged as in subsection B 1 of this Section. b. A meter shall be installed on the street valve in the house and a remote register outside regardless of whether inside piping is connected. 7. Discontinued Use: In the event the water customer elects to discontinue the use of the Municipal water, the regular or minimum charge shall continue until such date as the service pipe is excavated and disconnected at the watermain. 8. Utility Rate Discount: The City Council may establish reduced water and sewer rates for owner-occupied homes that meet financially need-based criteria as established by the City Council from time to time. (Ord. 620, 4-27-1970; 1995 Code) (Ord. 1463, 3-10-2014) C. Payment of Charges: Any prepayment or overpayment of charges may be retained by the City and applied on subsequent quarterly statements. D. Penalty For Late Payment:A late payment penalty of ten percent shall be assessed on all accounts with a past due balance. Accumulated interest on unpaid accounts will compound quarterly. E. D. Action to Collect Charges: Any amount in excess of 90 days past due for water charges in excess of 90 days past due shall may be certified to the County Auditor for collection with real estate taxes at an annual interest rate as established the Fee Schedule. In addition, all amounts certified shall include an additional fee to cover the City's costs of certification as established in the Fee Schedule. This certification shall take place regardless of who used the water services, whether it was the owner, tenant or other person. All applications for water service shall contain an explanation in clear language that unpaid water bills and accumulated fees and penalties will be collected in real estate taxes in the following year. The City shall also have the right to bring a civil action or other remedies to collect unpaid charges, fees, and penalties. F. Hearing Required. A hearing must be held prior to the certification of unpaid utility charges to the Count Auditor. Unpaid charges on sewer and water accounts will not be certified to the County Auditor until notice and opportunity for a hearing have been provided to the owner of the premises involved. The notice will DOCSOPEN\RS 160\1\897018.v4-10/18/23