HomeMy WebLinkAboutResolution 2787 Intent to raise water rates 6.5% effective 7-01-90
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COMMISSION RESOLUTION NO. 2787
A RESOLUTION OF THE CITY
COMMISSION OF THE CITY OF
BOZEMAN, MONTANA, ORDERING A PUBLIC HEARING BE HELD
ON A PROPOSED SIX AND ONE-HALF PERCENT (6.5%) INCREASE
IN THE WATER RATE CHARGED TO CUSTOMERS OF THE MUNI-
CIPAL 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 capability; and
WHEREAS, major maintenance is necessary on older water lines 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 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 six and one-half percent (6.5%) 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
six and one-half percent (6.5%) 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 18th day of June
1990, 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 six and one-half percent (6.5%) 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 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 14th day of May 1990. .
ATTEST:
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R IN L. SULLIVAN
Clerk of the Commission
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City
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PUBLISHED NOTICE
NOTICE IS HEREBY GIVEN that the Bozeman City Commission will con-
duct a pu blic hea ring on the 18th day of June 1990 at 7: 00 o'clock p. m. in the
Commission Room in the City Half located
at 411 East Main Street, Bozeman,
Montana, for the purpose of considering a proposed water rate increase of six
and one-half percent (6.5%), to become effective July 1, 1990.
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 23, 1990
Friday, June 1, 1990
Sunday, June 10, 1990
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NOTICE TO BE PUBLISHED ON WATER BILLS
NOTICE: At 7:00 pm on 06/18/90, 411 E Main,
the City Commission will hear public comment on a
proposed annua I rate increase of 6.5% water and
10.5% sewer to be effective 07/01/89, whereby a
monthly bill of $15 water and $6 sewer would in-
crease by $.98 and $.63 respectively. For info
contact: Robin Sull ivan, 411 E Main, phone
586-3321.
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