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HomeMy WebLinkAboutResolution 3114 Intent to increase sewer rates 4% and add 42% surcharge ...--.- COMMISSION RESOLUTION NO. 3114 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ORDERING A PUBLIC HEARING BE HELD ON A PROPOSED FOUR PERCENT (4.0%) INCREASE IN THE WASTEWATER (SEWER) BASE RATE CHARGED TO CUSTOMERS OF THE MUNICIPAL WASTEWATER (SEWER) SYSTEM AND A PROPOSED FORTY-TWO PERCENT (42.0%) 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 four percent (4.0%) 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 four percent (4.0%) 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 implement a forty-two percent (42.0%) 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-two percent (42.0%) 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. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that a public hearing be held on Monday, the 20th day of May 1996, 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 four percent (4.0%) increase in the wastewater (sewer) base rate and proposed forty~two percent (42.0%) 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 15th day of April 1996. ( ~P1-1 L ~~.. --f DON E. STUECK, Mayor ATTEST: ~ J .1tJ1~ R IN L. SULLIVAN Clerk of the Commission APPROVED AS TO FORM: /7 / /. Z~// ;I 1_~~1 '"J .i ~'/[_ .. I / { [, /' .'1/ . / ....- PAUL J. t City At~f;'ey - 2 - PUBLISHED NOTICE NOTICE IS HEREBY GIVEN that the Bozeman City Commission will conduct a public hearing on Monday, the 20th day of May 1996 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 four percent (4.0%) plus a surcharge of forty-two percent (42.0%), to become effective on the July 1, 1996, billing. The 4.0 percent base rate increase will generate a $.43 increase in an average $10.75 monthly wastewater (sewer) bill; and the 42.0- percent surcharge will generate an additional $4.52 increase in a $10.75 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, April 28, 1996 Sunday, May 5, 1996 Sunday, May 12, 1996 -------....-.-.-- n___.._., ._ _._.__... -.-.., ,..--.-...-. ~'-~- NOTICE TO BE PUBLISHED ON WATER/SEWER BillS NOTICE: At 7:00 pm on Mon, OS/20/96, 411 E Main, the City Commission will hear public comment on proposed rate increases of 4% and 42% surcharge in sewer, to be effective 07/01/96, whereby a monthly wastewater (sewer) bill of $10.75 would increase by $4.95; and a 4% increase in water, whereby a monthly water bill of $19.00 would increase by $0.76. For info contact: Robin Sullivan, 411 E Main, phone 582-2320.