HomeMy WebLinkAboutResolution 3214 Intent to increase sewer rates by 3% and surcharge to 50%
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COMMISSION RESOLUTION
NO. 3214
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, ORDERING A PUBLIC HEARING BE HELD ON A PROPOSED THREE
PERCENT (3.0%) INCREASE IN THE WASTEWATER (SEWER) BASE RATE
CHARGED TO CUSTOMERS OF THE MUNICIPAL WASTEWATER (SEWER)
SYSTEM AND A PROPOSED INCREASE FROM THE EXISTING TWENTY -FIVE
PERCENT (25.0%) SURCHARGE
TO A FORTY -FIVE PERCENT (45.0% )
SURCHARGE.
WHEREAS, the City of Bozeman, Montana (City) owns and operates a municipal
wastewater (sewer) utility system; and
WHEREAS, Section 7-13.4304, Montana Code Annotated (M.C.A.) requires the governing
body of a municipality operating a municipal wastewater system to fix and establish rates, rentals
and charges for services, facilities, and benefits directly or indirectly afforded by the system, taking
into account services provided and benefits received;
WHEREAS, Section 7-13-4307, M.C.A., authorizes the City of Bozeman to set rates and
charges for wastewater utility services in an amount sufficient in each year to provide income and
revenue adequate for payment of reasonable expenses of operation and maintenance and for the
payment of funds required to be paid into the sinking fund and for the accumulation of such
reserves and the making of such expenditures for depreciation and replacement of said system as
shall be determined necessary from time to time by the governing body or as shall have been
covenanted in the ordinances and resolutions authorizing any outstanding bonds; and
WHEREAS, Section 7-13-4308, M.C.A., grants local government the right to change and
readjust from time to time the rates and charges fixed and established provided the aggregate of
such rates and charges shall always be sufficient to meet requirements of Section 7-13-4307,
M.C.A.; and
WHEREAS, Section 69-7-101, M.C.A., authorizes local government to establish and
change wastewater rates as it considers proper; and
WHEREAS, a three percent (3.0%) increase in the base rate is necessary to meet the
financial needs of the City's wastewater (sewer) system, including the costs of major maintenance
of older wastewater (sewer) collection lines and capital improvements; and
WHEREAS, the Bozeman City Commission deems it advisable to consider a three percent
(3.0%) wastewater (sewer) rate increase; and
WHEREAS, the Wastewater Fund has incurred extraordinary costs in identifying and
mitigating groundwater contamination at the Bozeman Solvent Site; and
WHEREAS, these costs have diminished the balance in this fund to a negative position;
and
WHEREAS, the existing rates will not cover these costs; and
WHEREAS, the City Commission deems it in the best interests of the City to increase the
existing twenty-five percent (25.0%) surcharge to a forty-five percent (45.0%) surcharge for the
purpose of stopping the decline of the financial health of the Wastewater Fund and bring it back
to an acceptable financial level; and
WHEREAS, the forty-five percent (45.0%) surcharge will permit the City to separately
identify, and subsequently eliminate or phase out, the surcharge once the financial condition of the
Wastewater Fund reaches an acceptable level; and
WHEREAS, the wastewater (sewer) rate increase and surcharge are to be reflected in the
February 1, 1998, billing.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman,
Montana, that a public hearing be held on Monday, the 15th day of December 1997, at the hour
of 7:00 p.m. in the Commission Room located in the basement of City Hall, 411 East Main Street,
Bozeman, Montana, to hear public comment on the proposed three percent (3.0%) increase in the
wastewater (sewer) base rate and proposed increase in the existing twenty-five percent (25.0%)
surcharge to a forty-five percent (45.0%) surcharge to be charged to customers of the Bozeman
municipal wastewater (sewer) system.
BE IT FURTHER RESOLVED that the Clerk of the Commission give notice to the customers
of the Bozeman municipal wastewater system of said hearing pursuant to the notice requirements
set forth in Section 69-7-111, M.C.A., and mail by first class, postage prepaid, a copy of all notices
of hearing to the Montana Consumer Counsel.
PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a
regular session thereof held on the 17th day of November 1997.
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D E. STUECK, Mayor
ATTEST:
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ROBIN L. SULLIVAN
Clerk of the Commission
APPROY1D AS TO FORM:
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PAUL J. uWt
City Att~ey
- 2 -
PUBLISHED NOTICE
NOTICE IS HEREBY GIVEN that the Bozeman City Commission will conduct a public
hearing on Monday, the 15th day of December 1997 at 7:00 p.m. in the Commission Room in the
City Hall, 411 East Main Street, Bozeman, Montana, for the purpose of considering a proposed
wastewater (sewer) base rate increase of three percent (3.0%) plus an increase in the surcharge
from twenty~five percent (25.0%) to forty~five percent (45.0%), to be reflected in the February 1,
1998, billing. The 3.percent base rate increase will generate a $.33 increase in an average $11.00
monthly wastewater (sewer) bill: and the increase in the surcharge to 45~percent will generate an
additional $2.20 increase in an $11.00 monthly residential wastewater (sewer) bill. For additional
information, contact Robin L. Sullivan, Clerk of the Commission, at 411 East Main Street, Bozeman,
Montana, or telephone at (406) 582~2320.
ROBIN L. SULLIVAN
Clerk of the Commission
Display Ad
Publish: Sunday, November 23, 1997
Sunday, November 30, 1997
Sunday, December 7, 1 997
NOTICE TO BE PUBLISHED ON WATER/SEWER BILLS
NOTICE: At 7:00 pm on Mon, 12/15/97, 411 E Main, the City Commission will
hear public comment on proposed rate increases of 3% and 45% surcharge in
sewer, to be reflected on 02/01/98 bill, whereby a monthly wastewater (sewer)
bill of $11.00 would increase by $2.53; and a 3% increase in water, whereby
a monthly water bill of $20.00 would increase by $0.60. For info contact:
Robin Sullivan, 411 E Main, phone 582M2320.