HomeMy WebLinkAboutResolution 2662 Intent to increase water rates by 12%: 7-13-87 REPLACED BY 2665
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RESOLUTION NO. 2662
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 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, the City has been unable to refinance existing
bonded indebtedness to take advantage of lower interest rates due
to the poor financial condition of the water fund: and
WHEREAS, the City is in breach of existing water bond
covenants which require the City to produce net water fund income
equal to one hundred twenty-five percent (125%) of the debt
service payments: and
WHEREAS, additional 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 lines
and the costs incurred therein will exceed the City's present
ability to pay: and
WHEREAS, 69-7-101 Montana Code Annotated (MCA) authorizes
local government to increase water 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 commission for
a rate increase: and
WHEREAS, a twelve percent (12%) rate increase is necessary
to meet the immediate 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 twelve percent (12%) water rate increase: and
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF BOZEMAN, MONTANA, that a public hearing be held on the
10th day of Auqust , 1987, at the hour of 7:00 o'clock
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P.M. in the City 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%) increase in the
water rate charged to the customers of the Bozeman Municipal
Water System.
IT IS FURTHER ORDERED 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 at
g69-7-111 MCA and to 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 held thereof on the 13th
day of July , 1987.
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May r
ATTEST:
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Clerk of the City Commission
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APPROVED AS TO FORM: \
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City Attorney
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Cltv Attorney
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