HomeMy WebLinkAboutResolution 2738 Intent to increase water rates by 7%: 2-27-89
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COMMISSION RESOLUTION NO. 2738
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
BOZEMAN, MONT ANA, ORDERING A PUBLIC HEARING BE HELD
ON A PROPOSED SEVEN PERCENT (7%) INCREASE IN THE WA-
TER RATE CHARGED TO CUSTOMERS OF THE MUNICIPAL WA-
TER SYSTEM.
WHEREAS, the City of Bozeman, Montana (City) owns and operates a
municipal water utility system; and
WHEREAS, the City is in the process of refinancing existing bonded in-
debtedness to take advantage of lower interest rates and increase the amount of
cash available for completion of needed capital improvement items, including ex-
pansion of the water treatment plant and replacement of lines and valves; and
WHEREAS, additional capital improvements to the City.s water system are
needed which are beyond the City's present financial capability; and
WHEREAS, major maintenance is necessary on older water I ines and costs
incurred therein will exceed the City's present ability to pay; and
WHEREAS, the existing rates will not cover the increased costs associ-
ated with new water projects and major maintenance; 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 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 water 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 water rates so as not to yield more than a twelve percent (12%) increase
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in total annual revenues without the need of petitioning the publ ic service com-
mission for a rate increase; and
WHEREAS, a seven percent (7%) increase is necessary to meet the imme-
diate financial needs, but not the long term financial needs of the City's water
system; and
WHEREAS, the Bozeman City Commission deems it advisable to consider a
seven percent (7%) 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 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 public
comment on the proposed seven percent (7%) increase in the water rate charged
to the 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 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. L
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ATTEST:
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. SU
Clerk of the Commission
City Attorney
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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 water rate increase of sev-
en percent (7%), to become effective May 1,1989. For additional information,
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
Display Ad
Publish: Wednesday, March 8, 1989
Friday, March 17, 1989
Sunday, March 26, 1989
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NOTICE TO BE PUBLISHED ON WATER BILLS
NOTICE: At 7:00 pm on 04/03/89, 411 E Main,
the City Commission will hear public comment on a
proposed annual rate increase of 7% water and 12%
sewer to be effective 05/01/89, whereby a monthly
bill of $15 water and $6 sewer would increase by
$1.05 and $.72 respectively. For info contact:
Robin Sullivan, 411 E Main, phone 586-3321.
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