HomeMy WebLinkAboutResolution 2830 Intent to increase water rates by 4.5%
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. COMMISSION RESOLUTION NO. 2830
-- A RESOLUTION OF THE CITY COMMISSION
OF THE CITY OF
BOZEMAN, MONTANA, ORDERING A PUBLIC HEARING BE HELD
ON A PROPOSED FOUR AND ONE-HALF PERCENT
(4.5%)
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, the City has refinanced the water system revenue bonds to
take advantage of lower interest rates and increase the amount of cash available
for completion of needed capital improvement items, including expansion 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 capabi lity; and
WHEREAS, major maintenance is necessary on older water lines and costs
incurred therein wi" exceed the City's present abi lity to pay; and
WHEREAS, the existing rates will not cover the increased costs associ-
dt,d Nith new water projects and major maintenance; and
'\!HEf~EI\~;, Section 7-13-4304, Montana Code Annotated (M.C.A.) requires
the governing body of a municipal ity 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
in total annual revenues without the need of petitioning the Public Service Com-
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mission for a rate increase; and
WHEREAS, a four and one-half percent (4.5%) 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
four and one-half percent (4.5%) 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 the 20th day of May
1991, 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 four and one-half percent (4.5%) 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 hea ring 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 29th day of Apri I 1991. ..
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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 20th day of May 1991 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 four
and one-half percent (4.5%), to become effective July 1, 1991 . This 4. 5-per-
cent increase will generate an 81-cent increase in an $18
month Iy water bi II .
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, May 1, 1991
Wednesday, May 8, 1991
Wednesday, May 15, 1991
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NOTICE TO BE PUBLISHED ON WATER BILLS
NOTICE: At 7: 00 pm on OS/20/91, 411 E Ma in,
the City Commission will hear public comment on a
proposed annual rate increase of 4.5% water and
9.0% sewer to be effective 07/01/91, whereby a
monthly bill of $18 water and $8 sewer would in-
crease by $.81 and $.72 respectively. For info
contact: Robin Sullivan, 411 E Main, phone
586-3321.
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