HomeMy WebLinkAbout08-21-17 City Commission Packet Materials - A1. Resolution 4819, Water Rates
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Kristin Donald, Finance Director
SUBJECT: Commission Resolution No. 4819 – Establishing rates for water service for
the City of Bozeman
MEETING DATE: August 21, 2017
AGENDA ITEM: Action
RECOMMENDATION: Approve Resolution No. 4819 – increasing Water rates by 2%
effective September 1, 2017.
BACKGROUND: During the budget development process, the Commission considered
increases to water rates. The Approved Budget for Fiscal Year (FY) 2018 included proceeding
with Water Rate increases of 2% in FY18. This increase is for only one year due to a rate survey
to be conducted the second quarter of FY18.
The rate increases are needed to support the operating, capital, and debt service budgets for the
Water Fund, as well as provide adequate cash flow and reserves for our water utility.
ALTERNATIVES: As suggested by the Commission
FISCAL EFFECTS: All of the Metered and Unmetered Water fees would be increased by 2%,
effective on the September 1, 2017 bills. To summarize their effect on Average Residential
Customers:
142
It is important to note that Water Service charges are highly dependent on monthly consumption
of water. In high-water-use months, monthly increases are likely to be higher than the average
stated above. Low-water-use months will see less of an increase.
Attachment: Resolution No. 4819 Report compiled on July 31, 2017
Water Rates FY18
Average Residential Customer – Consumption of 10 HCF/month Monthly Increase Annual Increase
Water Services $0.66 $7.92
143
Page 1 of 4
COMMISSION RESOLUTION NO. 4819
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, ESTABLISHING RATES FOR WATER SERVICE FOR THE CITY OF
BOZEMAN.
WHEREAS, the City Commission of the City of Bozeman, following notice and public
hearing established a new Rate Schedule for the City of Bozeman’s Water Fund.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana, that the new rates for water services, based on a 30-day month, shall become
effective beginning with the bills due in September 2017 as follows, to wit:
Section 1 – Metered Water Rates
Service Charge Per Meter Size Current rate Effective 9/1/2017
5/8 $15.39 $15.70
1 $20.39 $20.80
1 1/4 $25.56 $26.08
1 1/2 $32.08 $32.73
2 $46.65 $47.59
3 $80.64 $82.26
4 $129.33 $131.92
6 $241.03 $245.85
8 $381.10 $388.73
Minimum Charge (up to 2.0 HCF)Current rate Effective 9/1/2017
Single family $5.01 $5.10
Multi family $3.83 $3.92
Government $3.50 $3.56
MSU $4.35 $4.44
Commercial $3.37 $3.44
144
Resolution 4819, Establishing Rates for Water Service
Page 2 of 4
Explanatory note: Each customer shall pay a minimum monthly bill, which includes applicable
amount according to meter size (A) plus the minimum water charge (B). For water consumed in
excess of 200 cubic feet, a customer shall pay the additional commodity charge (C).
Section 2 – Flat Rate Customers
Section 3 – Low Income Rate Assistance Effective on the September 2017 billing
Customers who apply for and qualify under the State’s Low Income Property Tax Assistance
Program, as set forth in Section 15-6-134 MCA, will receive a credit equal to their monthly
water service charge listed above.
Section 4 – Billing Procedures
Charges for water services under this schedule shall be made a part of the current monthly water
bill, to be shown by separate item on such bill. Separate payment of either the charge for the water
or the charge for the wastewater will not be accepted with prior approval of the Director of Finance.
Both charges must be paid at the same time; partial payments will be applied to the wastewater
charge first, with any remainder being applied to the water charge.
Charges for water used and wastewater service charges become due and payable upon receipt of
the bill. If any bill is not paid on or before the fifteenth day of that month, it will then become
Class & Charge Per HCF Used Current rate Effective 9/1/2017
Single family 0-8 HCF $2.50 $2.55
8-15 HCF $2.69 $2.75
Over 15 HCF $3.17 $3.24
Multi family $1.92 $1.96
Government $1.74 $1.78
MSU $2.17 $2.22
Commercial $1.68 $1.72
Flat Rate Customers Current rate Effective 9/1/2017
Single Family $67.27/month $68.62/month
City Park Irrigation $1,883/acre/year $1921/acre/year
Fire Protection $161,335 Annually $164,561.70 annually
Bulk, non-potable $3.73/$1,000 gallons $3.81/$1,000 gallons
145
Resolution 4819, Establishing Rates for Water Service
Page 3 of 4
delinquent; and if not paid in full by the fifteenth day of the following month, water service to the
premises involved may be discontinued (shut-off), after a ten-day written notice. A charge of
twenty-five dollars ($25.00) shall be made for any account requiring written shut-off notice. An
additional charge of twenty-five dollars ($25.00) during regular business hours or seventy-five
dollars ($75.00) during non-business hours shall be made for reinstating a water service, which
has been discontinued for non-payment of water and/or wastewater service charges.
Section 5 – Late Fee
For those accounts that become delinquent, a 1.5 percent (1.5%) late fee will be assessed on the
next bill. The minimum late fee shall be $1.00.
Section 6 – Protests
In cases where water service charges under this schedule are claimed to be unfair, unreasonable,
or not in proportion to charges made to other water customers, the person or persons against whom
such charges are made may apply to the City Manager for an adjustment, stating the circumstances.
The City Manager, or his designated representative, may make such adjustment of the water
charges as is deemed necessary, fair and equitable.
PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 21st day of August 2017; and effective
beginning with that billing period which will first appear on the September 2017 water billing.
___________________________________
CARSON TAYLOR Mayor ATTEST:
_____________________________________ ROBIN CROUGH City Clerk
146
Resolution 4819, Establishing Rates for Water Service
Page 4 of 4
APPROVED AS TO FORM:
___________________________________ GREG SULLIVAN City Attorney
147