HomeMy WebLinkAboutResolution 2739 Intent to increase sewer rates by 12%: 2-27-89
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COMMISSION RESOLUTION NO. 2739
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
BOZEMAN, MONTANA, ORDERING A PUBLIC HEARING BE HELD
ON A PROPOSED TWELVE PERCENT (12%) INCREASE IN THE
SEWER RATE CHARGED TO CUSTOMERS OF THE MUNICIPAL
SEWER SYSTEM.
WHEREAS, the City of Bozeman, Montana (City) owns and operates a
municipal sewer utility system; and
WHEREAS, financial reports for Fiscal Year 1987-88, as completed by the
independent auditors, reflect a $626,000 operating deficit in the Sewer Fund;
and
WHEREAS, capital improvements to the City's sewer system are needed
which are beyond the City's present financial capability; and
WHEREAS, major maintenance is necessary on older sewer collection lines
and costs incurred therein will exceed the City's present ability to pay; and
WHEREAS, Section 7-13-4304, Montana Code Annotated (M.C.A.) requires
the governing body of a municipality operating a municipal sewer system to fix
and establish rates, rentals and charges for such services taking into account
services provided and benefits received; and
WHEREAS, Section 7-13-4307, M.C.A., authorizes the City of Bozeman to
set rates and charges for sewer utility services in an amount sufficient in each
year to provide income and revenue adequate for payment of reasonable expen-
ses 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 government the right
to change and readjust from time to time the rates and charges fixed and estab-
lished provided the aggregate of such rates and charges shall always be suffi-
cient to meet requirements of Section 7-13-4307, M.C.A.; and
WHEREAS, Section 69-7-101, M.C.A., authorizes local government to in-
crease sewer rates so as not to yield more than a twelve percent (12%) increase
in total annual revenues without the need of petitioning the public service com-
mission for a rate increase; and
WHEREAS, a twelve percent (12%) increase is necessary to meet the im-
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mediate financial needs, but not the long term financial needs of the City's sew-
er system; and
WHEREAS, the Bozeman City Commission deems it advisable to consider a
twelve percent (12%) 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 the 3rd day of April
1989, at the hour of 7:00 o'clock p.m. in the Commission Room located in the
basement of City Hall, 411 East Main Street, Bozeman, Montana, to hear publ ic
comment on the proposed twelve percent (12%) increase in the sewer rate
charged to the customers of the Bozeman municipal sewer system.
BE IT FURTHER RESOLVED that the Clerk of the Commission give notice
to the customers of the Bozeman municipal sewer system of said hearing pursu-
ant to the notice requirements set forth at 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 27th day of February 1989.
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ATTEST:
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Clerk of the Commission
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PUBLISHED NOTICE
NOTICE IS HEREBY GIVEN that the Bozeman City Commission will con-
duct a public hearing on the 3rd day of April 1989 at 7:00 o'clock p.m. in the
Commission Room in the City Hall located at 411 East Main Street, Bozeman,
Montana, for the purpose of considering a proposed sewer rate increase of
twelve percent (12%), to become effective May 1, 1989. For additional in-
formation, contact Robin L. Sullivan, Clerk of the Commission, located at 411
East Main Street, Bozeman, Montana, or by telephoning (406) 586-3321.
ROBIN L. SULLIVAN
Clerk of the Commission
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Publish: Wednesday, March 8, 1989
Friday, March 17, 1989
Sunday, March 26, 1989
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