I3. ROI 6137, Water Rates and Regulation Public HearingCiTy OF Vo
KALISPELL
MEMORANDUM
To: Doug Russell, City Manager
Cc: Johnna Preble, City Attorney
From: Susie Turner, Public Works Director
Subject: Resolution No. 6137 - Resolution of Intent and Call for Public Hearing on
Amendments to the Water Rate Schedules
Meeting Date: June 19, 2023
The Resolution of Intent to adjust the Water Rate Schedules and Regulations has been placed on
the City Council Agenda for the June 19, 2023 regular meeting. This matter came before the
City Council at the June 12, 2023 Work Session after an internal review of the Water Fund's
budget indicated insufficient revenue to support inflationary costs for routine maintenance and
operational services, planned capital improvement projects, and debt service coverage. The
proposed rate schedule incorporates revenue requirements to generate adequate funds through
fiscal year 2027 in order to:
• Maintain the same quality of service
• Fund limited capital projects
• Fund an equipment replacement plan
• Maintain financial policy targets, i.e. reserve and operating balances, debt service
coverage
Pursuant to the statutory requirements, the Council must make all evidence to be relied upon in
its determination available to the public and set the matter for a public hearing. The hearing,
pursuant to MCA 69-7-111 must be set no earlier than 28 days after the first publication.
Therefore, the date of the hearing set by this resolution of intent is July 17, 2023.
This resolution is limited to advising Council's intent to act upon the proposed water schedules
and regulation amendments, making the material available to the public, and seeking public
comment at the hearing. Action by the Council shall take place thereafter at a subsequent
council meeting.
Rate schedule amendment material and communication will be made available to the public
through the following avenues:
• Legal Notice in the Newspaper
• Mailed Notices to all water customers
• July 61h Open House at City Hall
• City Website (www.kalisl2ell.com)
• Contacting Public Works at 406-758-7720
201 1' Avenue E IPhone (406)758-7720
PO Box 1997 Public Works Department Fax (406)758-7831
Kalispell, MT 59903 1 www.kalispell.com
RECOMMENDATION: It is recommended that Council approve Resolution 6137, a resolution
of intent setting a date for a public hearing on a proposal to adopt increases in the fees,
schedules, rates, charges, and classifications imposed on the customers of the City of Kalispell
water utility and to adopt amendments to the regulations of the city water utility.
ALTERNATIVES: Council can elect to amend or reject the resolution.
ATTACHMENTS: Resolution No. 6137 - Resolution of Intent
Water Rate Adjustment Legal Notice
Water Regulation Amendments
RESOLUTION NO. 6137
A RESOLUTION SETTING A DATE FOR PUBLIC HEARING ON A PROPOSAL TO
ADOPT INCREASES IN THE FEES, SCHEDULES, RATES, AND CHARGES
IMPOSED ON THE CUSTOMERS OF THE CITY OF KALISPELL WATER UTILITY
AND TO ADOPT CERTAIN AMENDMENTS TO THE REGULATIONS OF THE CITY
WATER UTILITY.
WHEREAS, a City of Kalispell Water Utility budget review has determined the current
structure of water utility rates is not adequate to fund necessary water enterprise
operations as well as the financial obligations incurred for replacements and
capacity increases to the system; and
WHEREAS, the City Council has determined that amending the terms of the current Water
Utility Rate Plan and amending the existing water regulations to reflect the
changes in the fees, schedules, rates, and charges is necessary to collect
sufficient revenue to cover the planned operating needs of the City's Water
System, and to maintain the same quality of service, fund rehabilitation,
replacement, and new growth projects, maintain target reserve balances of the
City's Water System, and meet required debt coverage; and
WHEREAS, the City Council, in order to adequately fund the City's water utility enterprise
operations, is evaluating the present and proposed new rates, as shown on the
attached Exhibit "A"; and
WHEREAS, prior to initiating any increase in the fees, schedules, rates, charges, and
classifications, and prior to any changes in water regulations, the City shall, as
required pursuant to Section 69-7-111, Montana Code Annotated, hold a public
hearing on the matter after giving due and proper notice of said hearing.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL, AS FOLLOWS:
SECTION 1. The City Council of the City of Kalispell shall hold a public hearing on the
proposed water utility increases and the proposed changes to the water
regulations, on the 17th day of July, 2023, at 7:00 p.m., in the Council
Chambers, 201 First Avenue East, Kalispell, Montana.
SECTION 2. The City Clerk and City Attorney are hereby authorized and directed to
make, publish, and distribute notices of said Public Hearing in conformity
with Section 69-7-111, MCA.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF
THE CITY OF KALISPELL, ON THE 19TH DAY OF JUNE, 2023.
Mark Johnson
Mayor
ATTEST:
Aimee Brunckhorst, CMC
City Clerk
EXHIBIT A
Present and Proposed Monthlv Water Rates
Proposed
FY 2024
FY 2025
FY 2026
FY 2027
15.0%
15.0%
10.0%
3.0%
Current
(Effective
Rates
Proposed Rate Adjustment
(July 1, 2023)
Sept 1, 2023)
Residential & Commercial
Fixed Charge (per account)
$10.99
$12.64
$14.54
$15.99
$16.47
Meter Size (Rate/Cycle)
3/4"
$1.45
$1.67
$1.92
$2.11
$2.17
1"
2.23
2.56
2.94
3.23
3.33
11/2"
4.07
4.68
5.38
5.92
6.10
2"
5.88
6.76
7.77
8.55
8.81
3"
13.58
15.62
17.96
19.76
20.35
4"
18.78
21.60
24.84
27.32
28.14
6"
29.86
34.34
39.49
43.44
44.74
Hosting Fee (per metering system)
0.89
0.89
0.89
0.89
0.89
Consumption Charge ($/1,000 Gal.)
$3.27
$3.76
$4.32
$4.75
$4.89
Sprinkling
Consumption Charge ($/1,000 Gal.)
$3.27
$3.76
$4.32
$4.75
$4.89
Private Fire Protection
Monthly Service Connection
2"
$32.71
$37.62
$43.26
$47.59
$49.02
3"
38.59
$44.38
$51.04
$56.14
$57.82
4"
42.87
$49.30
$56.70
$62.37
$64.24
6"
52.89
$60.82
$69.94
$76.93
$79.24
8"
67.27
$77.36
$88.96
$97.86
$100.80
10"
92.79
$106.71
$122.72
$134.99
$139.04
Water Sold from Hydrants
Consumption Charge ($/1,000 Gal.)
$6.06
$6.97
$8.02
$8.82
$9.08
Present and Proposed Monthly Water Rate Bill Comparisons
Proposed
Current
FY 2024
FY 2025
FY 2026
FY 2027
(7-1-23)
(Effective 9-1-23)
Residential & Commercial
0 gals
$12.44
$14.31
$16.46
$18.10
$18.64
2,000 gals
18.98
21.83
25.10
27.60
28.42
4,000 gals
25.52
29.35
33.74
37.10
38.20
6,000 gals
32.06
36.87
42.38
46.60
47.98
10,000 gals
45.14
51.91
59.66
65.60
67.54
Irrigation
0 gals
$12.44
$14.31
$16.46
$18.10
$18.64
2,000 gals
18.98
21.83
25.10
27.60
28.42
4,000 gals
25.52
29.35
33.74
37.10
38.20
6,000 gals
32.06
36.87
42.38
46.60
47.98
10,000 gals
45.14
51.91
59.66
65.60
67.54
* Per Metering Sytem Charge; Meter Hosting fee would be added after installation of a cellular meter.
*Out of City rate 1.25 times the in -City rate.
CITY OF KALISPELL
NOTICE OF PROPOSED WATER RATE INCREASE
A proposal to increase rates of the water utility and amend the water regulations to reflect the
changes has been presented to Kalispell City Council. It is the intent of the City Council to consider
the adjustment of the water utility rates to support inflationary costs for routine maintenance and
operational services, planned capital improvement projects, and debt service coverage.
A Public Hearing on the proposed rate increase and regulation amendments will be held
Monday, July 17, 2023 in the Council Chambers of City Hall, 201 1st Avenue East, Kalispell,
Montana, at 7:00 P.M. The increase in water rates and the amended water regulations will be
effective August 17, 2023 (applied to the September 2023 billing cycle).
Any person wishing to address the proposed water rate increase may appear at this hearing
and make oral statements or present same in writing. The proposed documents can be viewed on the
City's website at www.kalispell.com/679/Council-Public-Hearings or in the office of the City Clerk
at 201 First Avenue East, Kalispell.
Written comments may also be submitted for council consideration by delivering the same to
the City Clerk at 201 First Avenue East, Kalispell, MT 59901, or by email to
publi ccomment2kali spell. com prior to the hearing.
The City will also be hosting an Open House to answer any questions on the proposed rate
increases on Thursday, July 6, 2023 from 4:30 p.m. — 6:30 p.m. in the Council Chambers at City
Hall, or you may call (406) 758-7720.
Dated this 19th day of June, 2023.
Aimee Brunckhorst, CMC
City Clerk
Publish: June 25, 2023
July 2, 2023
July 9, 2023
The following table provides the proposed increase to the water rates, and example bill
comparisons.
Present and Proposed Monthly Water Rates
Proposed
FY 2024
FY 2025
FY 2026
FY 2027
15.0%
15.0%
10.0%
3.0%
Current
Rates
(Effective
Proposed Rate Adjustment
(July 1, 2023)
Sept 1, 2023)
Residential & Commercial
Fixed Charge (per account)
$10.99
$12.64
$14.54
$15.99
$16.47
Meter Size (Rate/Cycle)
3/4"
$1.45
$1.67
$1.92
$2.11
$2.17
1"
2.23
2.56
2.94
3.23
3.33
11/2"
4.07
4.68
5.38
5.92
6.10
2"
5.88
6.76
7.77
8.55
8.81
3"
13.58
15.62
17.96
19.76
20.35
4"
18.78
21.60
24.84
27.32
28.14
6"
29.86
34.34
39.49
43.44
44.74
Hosting Fee (per metering system)
0.89
0.89
0.89
0.89
0.89
Consumption Charge ($/1,000 Gal.)
$3.27
$3.76
$4.32
$4.75
$4.89
Sprinkling
Consumption Charge ($/1,000 Gal.)
$3.27
$3.76
$4.32
$4.75
$4.89
Private Fire Protection
Monthly Service Connection
2"
$32.71
$37.62
$43.26
$47.59
$49.02
3"
38.59
$44.38
$51.04
$56.14
$57.82
4"
42.87
$49.30
$56.70
$62.37
$64.24
6"
52.89
$60.82
$69.94
$76.93
$79.24
8"
67.27
$77.36
$88.96
$97.86
$100.80
10"
92.79
$106.71
$122.72
$134.99
$139.04
Water Sold from Hydrants
Consumption Charge ($/1,000 Gal.)
$6.06
$6.97
$8.02
$8.82
$9.08
Present and Proposed Monthly Water Rate Bill Comparisons
Proposed
Current FY 2024 FY 2025 FY 2026 FY 2027
(7-1-23) (Effective 9-1-23)
Residential & Commercial
0 gals
$12.44
$14.31
$16.46
$18.10
$18.64
2,000 gals
18.98
21.83
25.10
27.60
28.42
4,000 gals
25.52
29.35
33.74
37.10
38.20
6,000 gals
32.06
36.87
42.38
46.60
47.98
10,000 gals
45.14
51.91
59.66
65.60
67.54
Irrigation
0 gals
$12.44
$14.31
$16.46
$18.10
$18.64
2,000 gals
18.98
21.83
25.10
27.60
28.42
4,000 gals
25.52
29.35
33.74
37.10
38.20
6,000 gals
32.06
36.87
42.38
46.60
47.98
10,000 gals
45.14
51.91
59.66
65.60
67.54
* Per Metering Sytem Charge; Meter Hosting fee would be added after installation of a cellular meter.
*Out of City rate 1.25 times the in -City rate.