HomeMy WebLinkAbout08-13-07_Resolution No_ 4042, Water Rates_10
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Anna Rosenberry, Finance Director
Chris Kukulski, City Manager
SUBJECT: Resolution No. 4042 – Water Rates
MEETING DATE: August 13, 2007
BACKGROUND: Attached is Resolution 4042 that adopts water rates for the next two years.
These rates are based on the City’s recently adopted Comprehensive Water Rate study. A copy
of the rate study can be found online at http://www.bozeman.net/finance/budget.aspx .
For residential customers, water conservation block rates are implemented, which increase based
on the amount of water used. Customers with low-to-average consumption will see a decrease in
their water bill (approx 4-5%). Customers with large water consumption will see increases in
their monthly water bills.
For commercial & other customers, rate increases will range from 3.5% to 7.4%, dependant on
meter size.
The resolution also establishes a $5.00 minimum for bulk potable water purchased from the City
Shops Complex.
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RECOMMENDATION: Adopt Resolution No. 4042 which includes water rates effective on
September 1, 2007 and September 1, 20008.
FISCAL EFFECTS: This resolution does not provide additional dollars to the water fund;
it adjusts water rates to more accurately reflect the cost of service and to encourage water
conservation by residential customers.
ALTERNATIVES: As suggested by the City Commission.
Respectfully submitted,
Anna Rosenberry, Finance Director
Chris A. Kukulski, City Manager
Report compiled on August 6, 2006
Attachments: none
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COMMISSION RESOLUTION NO. 4042
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
BOZEMAN, MONTANA, ESTABLISHING RATES FOR WATER
SERVICE FOR THE CITY OF BOZEMAN.
WHEREAS, the City Commission of the City of Bozeman, following notice and public
hearing established a new Rate Schedule for the City of Bozeman’s Water Fund.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana, that the new rates for water services, based on a 30-day month, shall
become effective beginning with the bills due in September 2007 and September 2008 as
follows, to wit:
Section 1 – Metered Water Rates
City of Bozeman
Water Rates Effective Effective
Sept. 1 Sept. 1
2007 2008
A. Meter Charge
5/8" $ 12.60 $ 12.60
1" $ 16.57 $ 16.69
1 1/4" $ 20.73 $ 20.92
1 1/2" $ 25.80 $ 26.25
2" $ 37.35 $ 38.18
3" $ 64.28 $ 65.99
4" $ 102.86 $ 105.84
6" $ 190.90 $ 197.26
8" $ 301.60 $ 311.89
Residential & Low Income* $ 4.10 $ 4.10
Multi-Family $ 3.14 $ 3.14
Commercial & Com Spec $ 2.76 $ 2.76
Government & Govt Spec $ 2.86 $ 2.86
Montana State University $ 3.56 $ 3.56
C. Consumption Charge - $/HCF
Residential & Low Income*
First 0 - 7 HCF $ 2.05 $ 2.05
8 - 15 HCF $ 2.20 $ 2.20
Over 15 HCF $ 2.60 $ 2.60
Multi-Family $ 1.57 $ 1.57
Commercial & Com Spec $ 1.38 $ 1.38
Government & Govt Spec $ 1.43 $ 1.43
Montana State University $ 1.78 $ 1.78
* Metered, Single Family Only
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Explanatory note: Each customer shall pay a minimum monthly bill which includes
applicable amount according to meter size (A) plus the minimum water charge (B). For
water consumed in excess of 200 cubic feet, a customer shall pay the additional
commodity charge (C).
Section 2 – Flat Rate Customers
City of Bozeman
Unmetered Water Rates Effective Effective
Sept. 1 Sept. 1
2007 2008
Single Family, Unmetered $55.05/month $55.05/month
City Park Irrigation $1,541/acre/year $1,541/acre/year
Fire Protection $132,035 Annually
$132,035
Annually
Bulk, non-potable for construction use $3.05/1,000 gallons
$3.05/1,000
gallons
Bulk, non-potable water is only available at the City Shops complex and is
subject
to a $5.00 minimum purchase.
Section 3 – Low Income Rate Assistance
Effective on the September 2007 billing
Customers who apply for and qualify under the State’s Low Income Property Tax
Assistance Program, as set forth in Section 15-6-134 MCA, will receive a credit equal to
their monthly water service charge listed above.
Section 4 – Billing Procedures
Charges for water services under this schedule shall be made a part of the current
monthly water bill, to be shown by separate item on such bill. Separate payment of either
the charge for the water or the charge for the wastewater will not be accepted with prior
approval of the Director of Finance. Both charges must be paid at the same time; partial
payments will be applied to the wastewater charge first, with any remainder being applied
to the water charge.
Charges for water used and wastewater service charges become due and payable upon
receipt of the bill. If any bill is not paid on or before the fifteenth day of that month, it
will then become delinquent; and if not paid in full by the fifteenth day of the following
month, water service to the premises involved may be discontinued (shut-off), after a ten-
day written notice. A charge of twenty five dollars ($25.00) shall be made for any
account requiring written shut-off notice. An additional charge of twenty-five dollars
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($25.00) during regular business hours or seventy-five dollars ($75.00) during non-
business hours shall be made for reinstating a water service which has been discontinued
for non-payment of water and/or wastewater service charges.
Section 5 – ACH Incentive
For those customers who choose the automatic clearing house (ACH) payment option, a
one dollar ($1.00) discount will be taken from the total utility bill (total of water, sewer,
garbage). Bills will be mailed by the first working day of the month; with the automatic
payment being deducted on the 15th of the following month.
Section 6 – Late Fee
For those accounts that become delinquent, a 1.5 percent (1.5%) late fee will be assessed
on the next bill. The minimum late fee shall be $1.00.
Section 7 – Protests
In cases where water service charges under this schedule are claimed to be unfair,
unreasonable, or not in proportion to charges made to other water customers, the person
or persons against whom such charges are made may apply to the City Manager for an
adjustment, stating the circumstances. The City Manager, or his designated
representative, may make such adjustment of the water charges as is deemed necessary,
fair and equitable.
PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana,
at a regular session thereof held on the 13th day of August 2007, and effective beginning
with that billing period which will first appear on the September 2007 water billing.
__________________________________
JEFFREY K. KRAUSS
Mayor
ATTEST:
__________________________________
CYNTHIA JORDAN DELANEY
Acting City Clerk
APPROVED AS TO FORM:
__________________________________
PAUL J. LUWE
City Attorney
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