HomeMy WebLinkAbout08-11-20 City Commission Packet Materials - A1. Res 5192 Establishing Rates for Stormwater Services for FY21
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Kristin Donald, Finance Director
SUBJECT: Commission Resolution No. 5192 – Establishing rates for Stormwater
service for the City of Bozeman
MEETING DATE: August 11, 2020
AGENDA ITEM: Action
RECOMMENDATION: Approve Resolution No. 5192 – 5% increase in rates effective on
bills due September 15, 2020.
BACKGROUND:
The Approved Budget for Fiscal Year (FY) 2021 included Stormwater Rate increases of 5% in
FY21. With these changes, appropriate users classes will be charged based on their cost of
service and the City will be able to achieve and maintain appropriate revenue levels and reserves.
ALTERNATIVES: As suggested by the Commission
FISCAL EFFECTS: All of the Stormwater services charges would be increased by 5%
effective on the September 15, 2020 bills. The estimated increase in revenue is $99,621. The
average residential customer will see a change $0.31 increase to their monthly bill.
Per ERU Current rate Effective 9/15/2020
All Properties Per ERU $2.79 $2.93
Flat Rate Customers Current rate Effective 9/15/2020
All Properties $3.36 $3.53
41
Attachment: Resolution No. 5192
Report compiled on July 29, 2020
42
COMMISSION RESOLUTION NO. 5192 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ESTABLISHING RATES FOR STORMWATER 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 Stormwater Fund.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana, that the new rates for stormwater services shall be as follows:
Section 1 – Flat Rate Charge All properties located within the city limits with a city water meter installed shall be billed a flat
rate charge per month for each water meter service.
Properties within the city limits that do not have water meters may be assigned the flat rate charge,
if it is determined that their property contains impervious area. Based on a 30-day month, this charge shall become effective beginning with the bills due September 15.
Section 2 – Establishment of the Impervious Area Equivalent Residential Unit (ERU) An Equivalent Residential Unit (ERU) size of 2,700 square feet of impervious area is hereby
adopted.
Flat Rate Customers Current rate Effective 9/15/2020
All Properties $3.36 $3.53
43
A. Regardless of actual size, each single-family residential lot is assigned an ERU = 1.0. B. Each multi family, commercial, business, government or other property will be assigned a
number of ERUs by dividing the amount of impervious area by 2,700 square feet.
C. At no point will any property be assigned an ERU of less than 1.0. The records of impervious area will be made and kept by the City’s Stormwater Department. Section 3 – Variable Rate Charge All properties located within the city limits shall be billed a variable rate charge of $2.93 per month for each Equivalent Residential Unit, as determined under Section 2.
Based on a 30-day month, this charge shall become effective beginning with the bills due in
September 15. Section 4 – Credit for Properties with Existing Stormwater Infrastructure Select properties located within the city limits shall receive a monthly credit (deduction) equal to
$1.32 per ERU if determined to have or directly contribute to stormwater infrastructure meeting current engineering design standards. Based on a 30-day month, this charge shall become effective beginning with the bills due in
September 15.
The records of stormwater infrastructure and determination of any associated credit will be made and kept by the City’s Stormwater Department.
Section 5 - Low Income Charge 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
stormwater flat rate charge listed above. Section 6 – Billing Procedures Explanatory note: Except as noted in Section 5, each customer shall pay a minimum monthly bill
which includes the flat rate charge (Section 1) plus a variable rate charge (Section 3). For properties that have or directly contribute to stormwater infrastructure meeting current engineering design standards, a Credit will be granted. Charges for stormwater services under this schedule shall be made a part of the current monthly
water bill, to be shown by separate items on such bill. Separate payment of either the charge for
Per ERU Current rate Effective 9/15/2020
All Properties Per ERU $2.79 $2.93
44
the water, wastewater, or stormwater service will not be accepted without prior approval of the Finance Director.
Charges for stormwater service 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 fifty dollars ($50.00) shall be
made for any account requiring written shut-off notice. An additional charge of one-hundred
($100.00) shall be made for reinstating a water service which has been discontinued for non-payment of water, wastewater and/or stormwater service charges. Section 7 – 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 8 – 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 AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 11th day of August, 2020; and effective beginning with the bills due September 15, 2020.
__________________________________ CHRIS MEHL Mayor
ATTEST:
_____________________________________ MIKE MASS City Clerk
APPROVED AS TO FORM:
45
___________________________________ GREG SULLIVAN City Attorney
46