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Resolution 6137 - Public Hearing - Water Rate IncreaseRESOLUTION 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 I 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. LJ� L Mark Johnson Mayor ATTEST: Aim-e Brunckhorst, CMC City Clerk 44. ;Qp Q't EXHIBIT A 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.