HomeMy WebLinkAbout08-21-17 City Commission Packet Materials - A2. Resolution 4820, Wastewater Rates
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Kristin Donald, Finance Director
SUBJECT: Commission Resolution No. 4820 – Establishing rates for wastewater
service for the City of Bozeman
MEETING DATE: August 21, 2017
AGENDA ITEM: Action
RECOMMENDATION: Approve Resolution No. 4820 – increasing Wastewater 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 Wastewater 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
Wastewater Fund, as well as provide adequate cash flow and reserves for our wastewater utility.
ALTERNATIVES: As suggested by the Commission
FISCAL EFFECTS: All of the Metered and Unmetered Wastewater fees would be increased
by 2%, effective on the September 1, 2017 bills. To summarize their effect on Average
Residential Customers:
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Attachment: Resolution No. 4820 Report compiled on July 31, 2017
Wastewater Rates FY18
Average Residential Customer – Consumption of 10 HCF/month Monthly Increase Annual Increase
Wastewater Services $0.81 $9.72
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COMMISSION RESOLUTION NO. 4820
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, ESTABLISHING RATES FOR WASTEWATER 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 Wastewater 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 Customers
Service Charge Current Rate Effective 9/1/17
Residential $18.63 $19.01
Multi-Family $19.10 $19.49
Commercial $19.10 $19.49
Government $19.10 $19.49
MSU $19.10 $19.49
Industrial $49.82 $50.82
Volume Charge
Residential $3.08 $3.15
Low-Income $3.08 $3.15
Multi-Family $3.16 $3.23
Commercial $3.16 $3.23
Government $3.16 $3.23
MSU $3.16 $3.23
Industrial $7.59 $7.75
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Resolution 4820, Establishing Rates for Wastewater Service
Page 2 of 5
* For service dates of May through November, based on average of December through April
metered usage.
Explanatory note: Each customer shall pay a minimum monthly bill, which includes the monthly
charge (A) plus an additional charge (B). For extra strength waste, a customer shall additionally
pay the extra strength charges (C).
Section 2 – Unmetered Customers
Effective on the September 2017 billing
Section 3 – Special Charges
In certain cases, subdivisions and/or annexations have been approved on the condition that the
associated properties fund the operation of specific capital within the wastewater system, usually
lift stations. These charges are made on an annual cost-recovery basis, and are charged in
addition to all other account charges.
Extra Strength Waste Current Rate Effective 9/1/17
Pounds of BOD up to 830 lbs per day.$0.30 $0.31
Pounds of BOD in excess of 830 lbs per day.$0.43 $0.44
Peak BOD Demand Charge for Pounds of BOD in excess $0.38 $0.39
of 830 lbs per day, highest monthly peak day.
Pounds of SS in excess of 350 mg/l per day.$0.30 $0.30
Pounds of Phosphorus in excess of 5.0 mg/l per day.$4.95 $5.05
Pounds of Nitrogen in excess of 20 mg/l per day.$0.45 $0.46
Unmetered Customers Current Rate Effective 9/1/17
All unmetered customers $39.16 $39.94
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Resolution 4820, Establishing Rates for Wastewater Service
Page 3 of 5
Section 4 – Low Income Rate Assistance
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
wastewater service charge listed above.
Lift Stations Current Rate Effective 9/1/17
Users of the Baxter Meadows Lift Station
5/8"$3.65 $3.73
1"$5.47 $5.58
1.5"$18.23 $18.60
2"$29.17 $29.76
3"$58.34 $59.51
Users of the Laurel Glen Lift Station
5/8"$0.87 $0.89
1"$1.30 $1.33
1.5"$4.33 $4.42
2"$6.93 $7.07
3"$13.86 $14.14
Users of Cattail Creek Lift Station
5/8"$1.08 $1.11
1"$1.63 $1.67
1.5"$5.42 $5.53
2"$8.67 $8.85
3"$17.33 $17.68
Lift Stations Current Rate Effective 9/1/17
Users of Loyal Gardens Lift Station
5/8"$1.54 $1.57
1"$2.32 $2.37
1.5"$7.72 $7.88
2"$12.36 $12.61
3"$24.71 $25.21
Users of Norton Ranch Lift Station
5/8"$1.02 $1.04
1"$1.53 $1.56
1.5"$5.10 $5.21
2"$8.16 $8.33
3"$16.33 $16.66
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Resolution 4820, Establishing Rates for Wastewater Service
Page 4 of 5
Section 5 – Billing Procedures
Charges for wastewater 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
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 6 – 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 7 – Protests
In cases where wastewater service charges under this schedule are claimed to be unfair,
unreasonable, or not in proportion to charges made to other wastewater 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 wastewater charges as is deemed necessary, fair and equitable.
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Resolution 4820, Establishing Rates for Wastewater Service
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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
APPROVED AS TO FORM: ___________________________________
GREG SULLIVAN City Attorney
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