HomeMy WebLinkAboutResolution 2952 Intent to increase water rates by 5%
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COMMISSION RESOLUTION NO. 2952
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONT ANA, ORDERING A PUBLIC HEARING BE HELD ON A PROPOSED
FIVE PERCENT (5%) INCREASE IN THE WATER RATE CHARGED TO
CUSTOMERS OF THE MUNICIPAL WATER SYSTEM.
WHEREAS, the City of Bozeman, Montana (City) owns and operates a municipal
water utility system; and
WHEREAS, Section 7-13-4304, Montana Code Annotated (M.C.A.) requires the
governing body of a municipality operating a municipal 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 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 the outstanding bonds; and
WHEREAS, Section 7-13-4308, M.C.A., grants local governmentthe 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 water distribution 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 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
water rates so as not to yield more than twelve percent (12%) increase in total annual
revenues without the need of petitioning the Public Service Commission for a rate increase;
and
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WHEREAS, a five percent (5%) increase is necessary to meet the financial needs of
the City's water system; and
WHEREAS, the Bozeman City Commission deems it advisable to consider a five
percent (5%) water rate increase.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana, that a public hearing be held on Tuesday, the 22nd day of February
1994, 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 five
percent (5%) increase in the water rate charged to customers of the Bozeman municipal
water system.
BE IT FURTHER RESOLVED that the Clerk of the Commission give notice to the
customers of the Bozeman municipal 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 31 st day of January 1994.
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ATTEST:
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ROBIN L. SULLIVAN
Clerk of the Commission
APPROVED AS TO FORM:
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PUBLISHED NOTICE
NOTICE IS HEREBY GIVEN that the Bozeman City Commission will conduct a public
hearing on Tuesday, the 22nd day of February 1994 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 water rate increase of five percent (5%), to become effective on the April 1,
1994, billing. This 5 percent increase will generate a 90-cent increase in an $18 monthly
water bill. For additional information, contact Robin L. Sullivan, Clerk of the Commission,
at 411 East Main Street, Bozeman, Montana, or telephone at (406) 586-3321.
ROBIN L. SULLIVAN
Clerk of the Commission
Display Ad
Publish: Wednesday, February 2, 1994
Wednesday, February 9, 1994
Wednesday, February 16, 1994
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NOTICE TO BE PUBLISHED ON WATER/SEWER BILLS
NOTICE: At 7:00 pm on Tues, 02/22/94, 411 E Main, the City
Commission will hear public comment on proposed rate increase of 5 %
water and 9.5% sewer, to be effective 04/01/94, whereby a monthly bill
of $18 water and $8 sewer would increase by $0.90 and $0.76
respectively. For info contact: Robin Sullivan, 411 E Main, phone
586-3321 .
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MUNICIPAL UTILITIES 69.7.111
Telephone company license tax, Title 15,
ch.53.
Unclaimed property - deposits and
refunds held by utilities, 70.9.203.
Permissible easements for utilities,
76.6.203.
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Part 1 ..,~
Regulation of Rates by Municipality
~7.10I. Municipal utilities - regulation by municipality -
s. '. limitation. A municipality has the power and authority to regulate, estab.
lish. and change, as it considers proper. rates, charges, and classifications
co_imposed for utility services to its inhabitants and other persons served by
- municipal utility systems. Rates, charges, and classifications shall be
reasonable and just and, except as provided in 69.7-102, they may not be
raised to yield more than a 12% increase in total annual revenues or, in the
case of mandated federal and state capital improvements, the increase may
not exceed amounts necessary to meet the requirements of bond indentures
or loan agreements required to finance the local government's share of the
mandated improvements. Annual revenues must be computed on any con-
leCutive 12-month period for purposes of this chapter.
History: En. Sec. 1, Ch. 607, L. 1981; amd. Secs. 4, 8, Ch. 588, L. 1983.
Croes-References
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
120/0 in anyone year or rate increases for mandated federal and stafe 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
"trict 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 21. necessary to meet the requirement.s of bond indentures or loan agreements
istricts. Title 7, required t.o finance the local government's share for mandated federal and
ces - general state capital improvements.
:41. History: En. Sec. 5, Ch. 607, L. 1981; arnd. Secs. 4, 9, Ch. 588, L. 1983.
_e 7, ch. 13, part Cross-&ferences
Public bond issuf's, Title 17, ch. 5.
water systems, 69~7.103 through 69-7.110 reserved.
Sf'Wer 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 cust.omers, it shall order a hearing to be held
before it at a time and place specified.
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69-7-112 PUBLIC UTILITIES AND CARRIERS
(2) Notice of the hearing shall be published in a newspaper as p
in 7-1.4127. Ii}
(3) (a) The notice shall be published three times with at least 6" .
separating each publication. The first publication may be no more t '"
days prior to the hearing, and the last publication may be no less than 3
prior to the hearing.
(b) The notice must also be mailed at least 7 days and not more t~
days prior to the hearing to persons served by the utility. The notice must
mailed within the prescribed time period. This notice must contain an
timate of the amount the customer's average bill will increase.
(4) The published notice must contain:
(a) the date, time, and place of the hearing;
(b) a brief statement of the proposed action; and ;F
(c) the address and telephone number of a person who may be conta 69-7-20
for further information regarding the hearing.
(5) Notice of all hearings shall be mailed first class, postage prepaid-:- t! 1)tility sha
the Montana consumer counsel.:'fi Nles for tl-
History: En. Sec. 2, Ch. 607, L. 1981; amd. Secs. 4,10, Ch. 588, L.1983; amd. Sec.1O,{ those reqU
Ch.~,~. 1991; amd. Sec. 3, Ch. 507, L. 1993. \,..l operation'
Compiler s Comments Cross-References . .':' user char!'
1993 Amendment: Chapter 507 in (1), Montana Consumer Counsel, Art. xut..
the servic,
near beginning, inserted "75.5.516". sec. 2, Mont. Const.; Title 5, ch, 15, part 2; Titllf.
of service '
69, ch, I, part 2. ')I~ users witb
Investigatory powers of Consumer CoUJti,' The
rule s
sel, 69-2-203.) t':.'
f,,,.':" tones out,
69-7~112. Conduct of municipal rate hearing. (1) At the hearing, aU;'h?!~ municipal
persons, associations, corporations or companies affected or interested, in'):Y"' History
cluding the Montana consumer counsel, may be present and represented by!~" Cross-Refe
'" counsel. The hearing may be continued from time to time by the governing, .'. Montan
~ . body of the municipality. At the conclusion of the hearing, all interested "~ inapplicable
" . ',:-. parties shall be allowed to make such arguments as they may consider proper.
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.. (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; amd. 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 69.11-10l.
rules to the district court in whose jurisdiction the municipality lies. 69-11.102
History: En. Sec. 7, Ch. 607, L. 1981; amd. Sec. 4, Ch. 588. L.I983. 69-11-103
Cross-References
69-11-104
Venue, Title 25. ch. 2. 69-11-
105
69-7.114 through 69-7-120 reserved. 69-11-106
69-11-107
69-11-10e