(1) Councilmanic Examination: At least once in every four years Council shall make or cause to be made an independent examination of the current operations and Capital Programming and Budgeting of the Water Department, and in connection therewith employ qualified consultants to advise the Council directly with respect to:

(a) The formulated policy as prescribed by the Water Department for its capital program and capital budget and sinking fund requirements.

(b) The economic soundness of operational methods, universal meter operations, bill collecting and accounts receivable procedures, inventory control and similar factors.

(c) The reserves necessary to stabilize rates for 3, 4 and 5 year periods.

(2) Standards for Rates and Charges:[2] Pursuant to Section 5-801 of the Charter, the Water Department shall fix and regulate rates and charges for supplying water, without further authorization of Council, in accordance with the following standards:

(a) The rates and charges shall be such as shall yield to the City at least an amount equal to operating expenses, including interest and sinking fund charges on all obligations of the City in respect of the water system and, in respect of water and sewer revenue obligations of the City, such additional amounts as, together with additional amounts charged in respect of the City's sewer system, shall be required to comply with any rate covenant and sinking fund reserve requirements approved by ordinance of Council in connection with the authorization or issuance of water and sewer revenue bonds, and proportionate charges for all services performed for the Water Department by all officers, departments, boards or commissions of the City.

(b) The rates and charges shall yield not more than the total appropriation from the Water Fund to the Water Department and to all other departments, boards or commissions, plus a reasonable sum to cover unforeseeable or unusual expenses, reasonably anticipated cost increases or diminutions in expected revenue, less the cost of supplying water to City facilities and fire systems and, in addition, such amounts as, together with additional amounts charged in respect of the City's sewer system, shall be required to comply with any rate covenant and sinking fund reserve requirements approved by ordinance of Council in connection with the authorization or issuance of water and sewer revenue bonds. Such rates and charges may provide for sufficient revenue to stabilize them over a reasonable number of years.

(c) The rates and charges shall be equitably apportioned among the various classes of consumers.

(d) The rates and charges shall be just, reasonable and nondiscriminatory as to the same class of consumers.

(e) Special rates and charges, to be designated as "charity water rates and charges," shall be established for public and private schools, institutions of purely public charity, and places used for actual religious worship.

(f) Special rates and charges, to be designated as "public housing water rates and charges" shall be established for property of the Philadelphia Housing Authority and shall be set so that the Philadelphia Housing Authority receives a five percent (5%) reduction off of the Water Department's service and quantity charges.[3]

(3) Notice of Proposed Changes: The Water Department shall give written notice to Council at least 30 days in advance of the filing of notice of any proposed change in rates or charges or of any proposed revision in service rates, and shall submit therewith financial, engineering and other data upon which the proposed water rates and charges are based. Proposed revisions of rates to be made within 90 days prior to the enactment of the next annual operating budget shall be submitted to Council forthwith.[4]

(4) Annual Report: Water rates and charges shall be reviewed by the Water Department at least once a year, and a report thereof shall be submitted to Council.