§ 7. Rates, fees, and charges.

If the solid waste disposal and resource recovery system is owned by the city, the solid waste disposal and resource recovery system shall be operated on a self-liquidating basis; provided, however, the city may use, as provided in subsection (3) of section 5, special funds of the city as additional security for the bonds authorized by said subsection under any circumstances, whether the solid waste disposal and resource recovery system is owned by the city or privately owned under a franchise agreement with the city. The legislative body of the city, after a public hearing, shall prescribe a schedule of rates, fees, or other charges for the utilization of the services and facilities of such solid waste disposal and resource recovery system and may whenever necessary, revise such schedule. If the city owns the system, the schedule of rates, fees, or other charges prescribed shall be sufficient to produce revenues that when taken together with other legally available sources will be adequate to pay the cost related to the city's obligation, if any, of the operation, maintenance, repair, and necessary expansion of such solid waste disposal and resource recovery system, including reasonable reserves therefor, and to pay when due all obligations and interest thereon issued for the purposes of acquiring such solid waste disposal and resource recovery system. If the solid waste disposal and resource recovery system is privately owned under a franchise agreement with the city, the legislative body of the city, after a public hearing, shall determine and fix fair, just, and reasonable rates that may be requested, demanded, charged, or collected by the franchisee. Such rates and charges shall be determined and fixed in the following manner:

(1)

The legislative body of the city shall investigate and determine the actual legitimate costs of the property of each franchisee, which property is actually used and useful in the public service, and shall keep a current record of the net investment of each franchisee in such property which value, as determined by the legislative body of the city, shall be used for ratemaking and shall be the money honestly and prudently invested by the franchisee in such property used and useful in serving the public, less accrued depreciation, and shall not include any goodwill or going concern value or franchise value in excess of payment made therefor.

(2)

Whenever, after such public hearing, the legislative body of the city finds that the rates demanded, charged, or collected by any franchisee; that the rules, regulations, and practices of such franchisee affecting such rates are unjust, unreasonable, unjustly discriminatory, or in any way in violation of law; that such rates are insufficient to yield reasonable compensation for the services rendered; or that such service is inadequate or cannot be obtained; the legislative body of the city shall thereafter determine just and reasonable rates to be charged for such services and shall adopt rules affecting equipment, facilities, and services to be installed, furnished, and used. The legislative body of the city may require the franchisee to issue refunds for past overcharges to or overpayment from any person.

(Laws of Fla., Ch. 89-512, § 3)