The city council, by resolution, may from time to time establish a policy applicable to the service of water to users located outside the limits of the city. Any land outside the corporate limits receiving water service from the city on the effective date of this chapter may continue to be served, subject to all of the provisions of this chapter and all other rules of the city, at one hundred fifty percent of the rates, charges and penalties established by action of the city council. (Prior code § 23-7)