HomeMy WebLinkAbout09-10-18 City Commission Packet Materials - A3. Res. 4927, Establishing Water Rates for Water Service
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Kristin Donald, Finance Director
SUBJECT: Commission Resolution No. 4927 – Establishing rates for water service for
the City of Bozeman
MEETING DATE: September 10, 2018
AGENDA ITEM: Action
RECOMMENDATION: Approve Resolution No. 4927 – increasing Water meter charges by
3% and consumption charges by 5% effective September 1, 2018.
BACKGROUND:
The City is currently in a rate study process. On August 20, 2018, the Consultant, AE2S,
presented a recommendation for this year and discussion points for the future rate setting. The
recommendation is for an inflationary rate increase with some elements and pricing for capital
needs. We are proposing a 3% increase to monthly meter charges and 5% for flow charges.
Special charges also has an increase of 5% for City park irrigation and per the budget discussion
the reduction of the fire protection charge. Rates can be found in section 1 and 2 of the attached
resolution.
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
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FISCAL EFFECTS: The monthly charges would increase by 3% and usage charges would
increase by 5%, effective on the September 1, 2018 bills. The average customer will see $1.38
increase in their monthly bill, to summarize the rate change effect on Average Residential
Customers see below (Created by AE2S, rate study consultants):
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. 4927
Report compiled on August 26, 2018
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Page 1 of 4
COMMISSION RESOLUTION NO. 4927
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 2018 as follows, to wit:
Section 1 – Metered Water Rates
Service Charge Per Meter Size Current rate Effective 9/1/2018
5/8 $15.70 $16.17
1 $20.80 $21.42
1 1/4 $26.08 $26.86
1 1/2 $32.73 $33.71
2 $47.59 $49.02
3 $82.26 $84.73
4 $131.92 $135.88
6 $245.85 $253.23
8 $388.73 $400.39
Minimum Charge (up to 2.0 HCF)Current rate Effective 9/1/2018
Single family $5.10 $5.36
Multi family $3.92 $4.12
Government $3.56 $3.74
MSU $4.44 $4.66
Commercial $3.44 $3.62
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Resolution 4927, 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 2018 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.
Class & Charge Per HCF Used Current rate Effective 9/1/2018
Single family 0-8 HCF $2.55 $2.68
8-15 HCF $2.75 $2.89
Over 15 HCF $3.24 $3.40
Multi family $1.96 $2.06
Government $1.78 $1.87
MSU $2.22 $2.33
Commercial $1.72 $1.81
Flat Rate Customers Current rate Effective 9/1/2018
Single Family $68.62/month $68.62/month
City Park Irrigation $1921/acre/year $2,017/acre/year
Fire Protection $164,561.70 annually $0 Annually
Bulk, non-potable $3.81/$1,000 gallons $3.81/$1,000 gallons
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Resolution 4927, Establishing Rates for Water Service
Page 3 of 4
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 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.
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Resolution 4927, Establishing Rates for Water Service
Page 4 of 4
PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 10th day of September 2018; and
effective beginning with that billing period which will first appear on the September 2018 water
billing.
___________________________________
CYNTHIA L. ANDRUS
Mayor
ATTEST:
___________________________________
ROBIN CROUGH
City Clerk
APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN
City Attorney
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