A. A customer using this section shall execute an agreement in a form acceptable to the city attorney, secured by a Promissory Note and Deed of Trust providing for payment of the GFC in annual installments (“GFC Agreement”). The amount set forth in the GFC Agreement shall be included annually in the last monthly utility bill in the calendar year to the customer. Failure to pay the utility bill, including the GFC installment, shall be subject to all remedies available to City including, but not limited to termination of water service and foreclosure of utility liens.

B. The GFC Agreement shall be a form prepared and revised from time-to-time by the city attorney.

C. The term of the GFC Agreement shall be not longer than four years. The GFC Agreement shall not be assigned or transferred, and upon sale or transfer of the property subject to the GFC Agreement, the unpaid balance of the GFC shall be paid in full as a condition of continued utility service and transfer of the utility account to a new customer. Provided, a new customer may apply under this section for a GFC Agreement.

D. Each annual GFC rate under this section shall be calculated as follows:

When,

A: any GFC amount paid at time of application, or by subsequent annual payment(s) of GFC installment;

R: remaining years for payment of GFC, not to exceed four years; and

P: a rate premium of 1.05:

For example, if the GFC is $60,000, the annual payments shall be calculated as follows:

YEAR 1: 60,000 - 0 ÷ 4 × 1.05 = 15,750

YEAR 2: 60,000 - 15,000 ÷ 3 × 1.05 = 15,750

YEAR 3: 60,000 - 30,000 ÷ 2 × 1.05 = 15,750

YEAR 4: 60,000 - 45,000 ÷ 1 × 1.05 = 15,750

E. If a customer has paid prior installments under subsection 3-D, above, the unpaid balance of GFC may be paid by customer prior to the commencement of a calendar year without premium.

F. An applicant for GFC Agreement shall pay, at time of application, a one time processing fee of Two Hundred (200) Dollars.