HomeMy WebLinkAboutA4. Res 4626
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Anna Rosenberry, Administrative Services Director
Chris Kukulski, City Manager
SUBJECT: Resolution No. 4626 – Water Rates
MEETING DATE: August 17, 2015
RECOMMENDATION: Adopt Resolution No. 4626 which includes a 2.5% increase to
Water Rates effective on September 1, 2015 and a 2.5% increase on September 1, 2016.
BACKGROUND: During the budget development process, the Commission considered
increases to water rates. The Approved Budget for Fiscal Year (FY) 2016 included proceeding
with Water Rate increases of 2.5% in FY16 and 2.5% in FY17. These amounts were the result
of an update to our 5-Year Comprehensive Water Rate study and information presented to the
Commission during budget discussions and hearings in June. A copy of the updated rate study
can be found under Water & Wastewater Rate Studies online at
http://www.bozeman.net/Departments-(1)/Finance/Budgets-and-Financials.
The rate increases are needed to support the operating, capital, and debt service budgets for the
Water Fund, as well as provide adequate cash flow and reserves for our water utility. The 5-year
rate model shows these increases to bring in approximately $172,000 in FY16 and $352,000 in
FY17, beyond our current rate levels.
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ALTERNATIVES: As suggested by the Commission.
FISCAL EFFECTS Summary: All of the Metered and Unmetered Water fees would be
increased by 2.5%, effective on the September 1, 2015 bills; and, by an additional 2.5% on the
September 1, 2016 bills. To summarize their effect on Average Residential Customers:
It is important to note that Water Service charges are highly dependent on monthly consumption
of water. In high-water-use months, monthly increases are likely to be higher than the average
stated above. Low-water-use months will see less of an increase.
Report compiled on Aug 110, 2015
Attachments: Resolution No. 4626
Water Rates FY16 FY17
Average Residential Customer –
Consumption of 10 HCF/month
Monthly
Increase
Annual
Increase
Monthly
Increase
Annual
Increase
Water Services $1.00 $12.00 $1.03 $12.36
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Page 1 of 4
COMMISSION RESOLUTION NO. 4626
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; and
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 2015 and September 2016 as
follows, to wit: Section 1 – Metered Water Rates
City of Bozeman Current Effective Effective
Water Rates Water Rates Sept. 1 2015 Sept. 1 2016
A. Meter Charge
5/8" $ 14.65 $
15.02
$
15.39
1" $ 19.41 $
19.90
$
20.39
1 1/4" $ 24.33 $
24.94
$
25.56
1 1/2" $ 30.53 $
31.29
$
32.08
2" $ 44.40 $
45.51
$
46.65
3" $ 76.75 $
78.67
$
80.64
4" $ 123.10 $
126.18
$
129.33
6" $ 229.42 $
235.16
$
241.03
8" $ 362.74 $
371.81
$
381.10
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Resolution 4626, Establishing Rates for Water Service
Page 2 of 4
B. Minimum Charges - up to 200
Cubic Feet
Residential & Low Income* $ 4.77 $
4.89
$
5.01
Multi-Family $ 3.65 $
3.74
$
3.83
Commercial & Com Spec $ 3.21 $
3.29
$
3.37
Government & Govt Spec $ 3.33 $
3.41
$
3.50
Montana State University $ 4.14 $
4.24
$
4.35
C. Consumption Charge = $/HCF
Residential & Low Income*:
First 0-7 HCF $ 2.38 $
2.44
$
2.50
8-15 HCF $ 2.56 $
2.62
$
2.69
Over 15 HCF $ 3.02 $
3.10
$
3.17
Multi-Family $ 1.83 $
1.88
$
1.92
Commercial & Com Spec $ 1.60 $
1.64
$
1.68
Government & Govt Spec $ 1.66 $
1.70
$
1.74
Montana State University $ 2.07 $
2.12
$
2.17
*Metered, Single Family Only
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 Current Effective Effective
Unmetered Water Rates Water Rates Sept. 1 2015 Sept. 1 2016
Single Family, Unmetered $64.03/month $65.63/month $67.27/month
City Park Irrigation $1,792/acre/year $1,837/acre/year $1,883/acre/year
Fire Protection $153,561 Annually $157,400 Annually $161,335 Annually
Bulk, non-potable for construction
use
$3.55/1,000 gallons $3.64/1,000 gallons $3.73/$1,000 gallons
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Resolution 4626, Establishing Rates for Water Service
Page 3 of 4
Section 3 – Low Income Rate Assistance
Effective on the September 2015 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 ($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 – 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 6 – 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 17th day of August, 2015; and effective beginning with that billing period which will first appear on the September 2015 water billing.
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Resolution 4626, Establishing Rates for Water Service
Page 4 of 4
__________________________________
JEFFREY K. KRAUSS Mayor
ATTEST:
______________________________
STACY ULMEN, CMC
City Clerk
APPROVED AS TO FORM:
____________________________________ GREG SULLIVAN City Attorney
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