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HomeMy WebLinkAboutResolution 3045 Intent to increase sewer rate by 12% ___ _ __..n __ COMMISSION RESOLUTION NO. 3045 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ORDERING A PUBLIC HEARING BE HELD ON A PROPOSED TWELVE PERCENT (12.0%) INCREASE IN THE WASTE WATER (SEWER) RATE CHARGED TO CUSTOMERS OF THE MUNICIPAL WASTE WATER (SEWER) SYSTEM. WHEREAS, the City of Bozeman, Montana (City) owns and operates a municipal waste water (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 waste water 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 waste water 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 rightto 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, major maintenance on older waste water (sewer) collection lines is necessary, and the costs to perform this major maintenance will exceed the City's present ability to pay; and WHEREAS, capital improvements to the City's waste water system are needed which are beyond the City's present financial capability; and WHEREAS, the existing rates will not cover the costs associated with the needed capital improvements and major maintenance; and WHEREAS, Section 69-7-101, M.C.A., authorizes local government to increase waste water rates so as not to yield more than twelve percent (12.0%) increase in total ---.-".--- -...--.--.. annual revenues without the need of petitioning the Public Service Commission for a rate increase; and WHEREAS, a twelve percent (12.0%) increase is necessary to meet the financial needs of the City's waste water (sewer) system; and WHEREAS, the Bozeman City Commission deems it advisable to consider a twelve percent (12.0%) waste water (sewer) rate increase. 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 March 1995, 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 twelve percent (12.0%) increase in the waste water (sewer) rate charged to customers of the Bozeman municipal waste water (sewer) system. BE IT FURTHER RESOLVED that the Clerk of the Commission give notice to the customers of the Bozeman municipal waste water 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 21 st day of February 1995. ATTEST: ~J~ R BIN L. SULLIVAN Clerk of the Commission APPROVED AS TO FORM: ~ City Attorney - 2 - PUBLISHED NOTICE NOTICE IS HEREBY GIVEN that the Bozeman City Commission will conduct a public hearing on Monday, the 20th day of March 1995 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 waste water (sewer) rate increase of twelve percent (12.0%), to become effective on the May 1, 1995, billing. This 12.0 percent increase will generate a $1.08 increase in an $9 monthly waste water (sewer) bill. No increase is proposed to the City's water rates. 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, February 26, 1995 Sunday, March 5, 1995 Sunday, March 12, 1995 ---- -----.- NOTICE TO BE PUBLISHED ON WATER/SEWER BILLS NOTICE: At 7:00 pm on Mon, 03/20/95,411 E Main, the City Commission will hear public comment on proposed rate increase of 12% sewer, to be effective 05/01/95, whereby a monthly waste water (sewer) bill of $9 would increase by $1.08. No increase is proposed to the water rates. For info contact: Robin Sullivan, 411 E Main, phone 582-2320. ------ u___....________ ..--.------ 69-7-112 PUBLIC UTILITIES AND CARRIERS (2) Notice of the hearing shall be published in a newspaper as p in 7.1-4127. (3) (a) The notice shall be published three times with at least 6" separating each publication. The first publication may be no more thaD." days prior to the hearing, and the last publication may be no less than 3 prior to the hearing. (b) !he notice mu~t also be mailed at least 7 da~s. and not more thatlii. days prIOr to the hearmg to persons served by the utlhty. The notice mustbi: mailed within the prescribed time period. This notice must contain an ~: timate of the amount the customer's average bill will increase. .c;'~ (4) The published notice must contain: . (a) the date, time, and place of the hearing; _ (b) a brief statement of the proposed action; and (c) the ~ddress ~nd teleph~ne number ~f a person who may be conta~::;"; 9--7.2 for further ~nformahon r~gardmg the hea:mg. . ...._ ~;: "'. . ~ sb (5) Nohce of all hearmgs shall be mmled flrst class, postage prepaid to"f utihtYf the Montana consumer counsel. "~.~ rules or History: En. Sec. 2, Ch. 607, L. 1981; amd. Sees. 4,10, Ch. 588, L. 1983; amd. Sec.l~~;~R' those ~eq Ch. 645, L. 1991; amd. Sec. 3, Ch. 507, L. 1993.~Jt>: operatlOfc Compiler's Comments Cross.References """i~' user char 1993. A~cn~mcnt: 9hapter ~07 in (1), Montana Consumer Counsel, Art. XIiV~"; the servi". near begmnmg, mserted 75.5-516. SeC. 2, Mont. Const.; Title 5, ch. 15, part 2; Title:~ of servic~ 69, ch. 1, ~art 2":r; users WL InvestIgatory powers of Consumer Coun- .;..;1<- Th 1 seJ, 69.2-203. '. ".0 e ru f; 69--7-112. Conduct of municipal rate hearing. (1) At the hearing, all :~~~c~~', persons, associations, corporations or companies affected or interested, in. Histo' , cluding the Mont~na consumer co,:nsel, may b~ prese~t and represented. by Cro8S-& ,:::':~;' counsel. The hearmg may be contmued from hme to tlme by the governmg . Monti ~:;'I body of the municipality. At the conclusion of the hearing, all interested inapplid. ,',; parties shall be allowed to make such arguments as they may consider proper. ~. _ (2) Within 30 days after the hearing, the governing body of the municipality shall issue its decision. The decision is final 10 days after being filed with the municipal clerk. A copy of each revised rate schedule shall be filed with the public service commission upon final decision. ". History: En. Sec. 3, Ch. 607, L. 1981; Ilmd. Sec. 4, Ch. 588, L. 1983. .~~." Cross-References Office of municipal clerk, Title 7, ch. 4, part 45. 69--7-113. Appeals. (1) A party to a municipal rate hearing may appeal the decision of the municipality to the district court in whose jurisdiction the municipality lies. (2) A person may appeal the adoption or application of municipal utility .. rules. to the district court in whose jurisdiction the municipality lies. ~~:g:i: History: En. Sec. 7, Ch. 607, L. 1981; amd. Sec. 4, Ch. 588, L.1983. 69.11-1' Cross-References 69.11-1i Venue, Title 25, ch. 2. 69,11-1 69-7-114 through 69-7-120 reserved. ~~:ii:ii 69.11.~ MUNICIPAL UTILITIES 69-7-111 ',~~m"nt of public utilities, 15-8-406, Telephone company license tax, Title 15, ~101. ch.53. "\r;c~',u.essment of railroads and other Unclaimed property - deposits and ~jses, 15-8-407. refunds held by utilities, 70.9-203. '\"" .~, Jk'p<>rt of property by utilities to Depart- Permissible easements for utilities, '-;~ofRevenue, 15-23-30l. 76.6-203. ., Energy conservation materials in dwell- . .,_Ioans, 15-32-107. Part 1 Regulation of Rates by Municipality 69-7-101. Municipal utilities - regulation by municipality - s. " 6mitation. A municipality has the power and authority to regulate, estab- i: lish, and change, as it considers proper, rates, charges, and classifications .ns, 45-8-213;~ .~~posed for utility services to its inhabitants and other persons served by ,/'1" ' municipal utility systems. Rates, charges, and classifications shall be j~ rnsonable and just and, except as provided in 69-7-102, they may not be '~ J1Iised to yield more than a 12% increa~e in. total annual reven~es or, in the J:.. ease of mandated federal and state capital improvements, the mcrease may , ~: not exceed amounts nece~sary to .meet the requirements of bO,nd indentures ,Ii.' or loan agreements required to fmance the local government s share of the ~i mandated improvements. Annual revenues must be computed on any con- .'r;' secutive 12-month period for purposes of this chapter. i' History: En. Sec. 1, Ch. 607, L. 1981; Ilmd. Secs. 4, 8, Ch. 588, L. 1983. .(~: Cross-References . ~,,:.t Public bond issues, Title 17, ch. 5. 69-7-102_ Rate increases over maximum. (1) If a municipal utility requires rate increases that yield an increase in total revenues in excess of l2"k in anyone year or rate increases for mandated federal and state capital improvements for which the increase exceeds amounts necessary to meet the .,/,,: requirements of bond indentures or loan agreements required to finance the - , local government's share of the mandated improvements, it must make application for such increases to the public service commission. (2) If the public service commission issues a rate order approving such an 'strict ratemak. increase, the municipality may not increase any rates and charges under this 'ted to county chapter within 12 months of the commission's order unless an increase is part 2l. necessary to meet the requirements of bond indentures or loan agreements . istricts, Title i, required to finance the local government's share for mandated federal and :es - general state capital improvements. : 4l. HiRtory: En. Sec. 5, Ch. 607, 1.. 1981; amd. Secs. 4, 9, Ch. 588, L. 1983. ,e 7, ch. 13, part Cross-References Public bond issues. Title 17, ch. 5. water systemS, 69-7-103 through 69-7-110 reserved. gewer system, 69-7-111. Municipal rate hearing required - notice_ (1) Except as 'r supply and provided in 75-5-516 and 75-6-108, if the governing body of a municipality 44. considers it advisable to regulate, establish, or change rates, charges, or to candidates, classifications imposed on its customers, it shall order a hearing to be held before it at a time and place specified. _n__