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HomeMy WebLinkAboutResolution 3710 Intent to increase water rates 5% COMMISSION RESOLUTION NO. 3710 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ORDERING A PUBLIC HEARING BE HELD ON A PROPOSED FIVE PERCENT (5.0%) INCREASE IN THE WATER RATE CHARGED TO CUSTOMERS OF THE MUNICIPAL WATER SYSTEM, REVISING THE WATER CONSUMPTION INCLUDED IN THE BASE RATE, IMPLEMENTING AN INCENTIVE FOR USE OF THE ACH PAYMENT OPTION, AND IMPLEMENTING A LATE FEE CHARGE. WHEREAS, the City of Bozeman, Montana (City) owns and operates a municipal water utility system; 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 services, facilities, and benefits directly or indirectly afforded by the system, taking into account services provided and benefits received; 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 expenses 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 established provided the aggregate of such rates and charges shall always be sufficient to meet requirements of Section 7-13-4307, M.C.A.; and WHEREAS, Section 69-7-101, M.C.A., authorizes local government to establish and change water rates as it considers proper; and WHEREAS, a five percent (5.0%) increase is necessary to meet the financial needs of the City's water system, including inflationary costs, the costs of major maintenance of older water distribution lines and capital improvements; and WHEREAS, the Bozeman City Commission deems it advisable to consider a five percent (5.0%) water rate increase, to be reflected in the November 1,2004, billing. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, that a public hearing be held on Monday, the 20th day of September 2004, at the hour of 7:00 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 five percent (5.0%) increase in the water rate charged to customers of the Bozeman municipal water system, along with revising the water consumption included in the base rate, implementing an incentive for use of the automatic clearing house (ACH) payment option, and implementing a late fee charge. BE IT FURTHER RESOLVED 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 in 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 16th day of August 2004. AN ATTEST: ~s!uP~ Clerk of the Commission APPROVED AS TO FORM: ~~ {, t.A.. TIMOTHY A. C &fER Acting City Attorney - 2 - ------------ .__. .......__._n_._ PUBLISHED NOTICE NOTICE IS HEREBY GIVEN that the Bozeman City Commission will conduct a public hearing on Monday, the 20th day of September 2004 at 7:00 p.m. in the Commission Room in the City Hall, 411 East Main Street, Bozeman, Montana, for the purpose of considering a proposed water rate increase of five percent (5.0%), to be reflected in the November 1,2004, billing. This five percent (5.0%) increase will generate a $1.60 increase in an average $32 monthly water bill. The resolution also changes the water consumption included in the base rate, implements an incentive for use of the ACH payment option, and implements a late fee charge. For additional information, contact Robin L. Sullivan, Clerk of the Commission, at 411 East Main Street, Bozeman, Montana, or telephone at (406) 582-2320. ROBIN L. SULLIVAN Clerk of the Commission Display Ad Publish: Sunday, August 29, 2004 Sunday, September 5, 2004 Sunday, September 12, 2004