The Midway City Sanitary District ("District") is obligated by State law to prevent Sanitary Sewer Overflows ("SSOs"), which may in some cases result in sewage reaching the storm water system and ultimately the Pacific Ocean. Sewer laterals are privately owned and maintained to the point of connection with District sewer mains. Poorly maintained sewer laterals can cause SSOs, as well as backups in residential toilets, which can cause damage to property. The District is concerned about the inflow and infiltration into the public sewer system from privately owned and maintained sewer laterals. The District's Board of Directors ("Board") finds that in furtherance of the District's mission, it is in the best interest of its sewer system ratepayers to participate in the needed upgrades of deficient sewer laterals, to provide an incentive to residential homeowners to remedy such deficiencies and to establish a program for financial assistance to replace sewer laterals ("Program").

The Program shall operate to the extent that the Board allocates monies for the Program annually within the budget. Once allocated monies have been exhausted, the Program is finished for that budget year.