(1) A person desiring to connect property which abuts upon a public sewer of the City with the City sewer system may have the property connected to the public sewer upon application to the City Engineer for a permit and payment to the City of the fees provided for in this section.

(2) Where the sewer connection serving the property has previously been paid for by the owner or developer, a permit must be obtained but no fee shall be charged under subsection (3) of this section.

(3) Except as provided in subsection (2) of this section, a person desiring to connect abutting property to a public sewer shall pay the appropriate connection fee provided in the most recent schedule approved by resolution of the City Council. The fee shall not exceed the average cost of inspecting the connections.

(4) When a sanitary sewer, either trunk or lateral, is constructed by the City on a local assessment basis, and the cost thereof is determined, and it appears to the council that areas not included in the proposed assessment district may at some future date be connected to the sewer, the council, after considering the recommendation of the City Manager, shall determine the amount which should be recovered from the unassessed area by fees in lieu of assessment calculated on the same basis as the assessments on property in the assessment district. The amount to be recovered by fees in lieu of assessment shall be deducted from the total amount to be assessed for the sewer. In order to obtain a permit for a sewer connection in the area designated as "in lieu of assessment," the applicant shall pay a fee equal to the amount that would have been assessed to a parcel of like dimension and nature within the original assessment district plus interest on that amount at the rate of five percent (5%) per annum compounded annually from the date of assessment to the date of permit application. Fees in lieu of assessment recovered under this Subsection (4) shall be applied to the reimbursement of public funds advanced for the cost of the sewer.