08. Resolution 5466 - Calling for a Public Hearing - Sewer Rate IncreaseCity of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997
Telephone (406) 758-7701 Fax - (406) 758-7758
MEMORANDUM
TO: Mayor Tammi Fisher
and Kalispell City Council
FROM: Jane Howington, City Manager
SUBJECT: Resolution No. 5466 — Call for Public Hearing on Proposal to
Adopt Sewer Rate Increase
MEETING DATE: November 1, 2010 — Regular Council Meeting
BACKGROUND: The recently completed utility rate study conducted for the City of
Kalispell concluded that current sewer rates should be adjusted in order to adequately fund the
necessary operations of the sewer facility as well as the financial obligations incurred in the last
replacement and capacity increases to the system. The City Council previously determined that
the implementation of the five-year Capital Improvement Program that included the last
replacement and capacity increases to the system was essential to maintain adequate sewer
services. The rate study recommends a five percent (5%) rate increase to move the City of
Kalispell closer to cost -based rates which will collect sufficient revenue to cover the planned
operating and capital needs of the City's Wastewater/Sewer System. Prior to initiating any
increase in the fees, schedules, rates, charges, and classifications, the City is required, pursuant to
Section 69-7-I11, Montana Code Annotated, to hold a public hearing on the matter after giving
due and proper notice of said hearing.
RECOMMENDATION: That City Council give consideration and pass Resolution No.
5466 calling for a public hearing on the proposal of the sewer rate study that sewer rates be
increased.
FISCAL IMPACTS: None at this time.
Respectfully submitted,
Jane Howington, City Mana r
A RESOLUTION SETTING A DATE FOR PUBLIC HEARING ON A PROPOSAL TO
ADOPT INCREASES RATES, CHARGESD
CLASSIFICATIONSIMPOSED ON i RS OF THE CITY OF '
SEWER UTILITY.
WHEREAS, the recently completed utility rate study conducted for the City of Kalispell concluded
that current sewer rates should be adjusted in order to adequately fund the necessary
operations of the sewer facility as well as the financial obligations incurred in the last
replacement and capacity increases to the system, and
WHEREAS, the City Council previously determined that the implementation of the five-year
Capital Improvement Program that included the last replacement and capacity
increases to the system was essential to maintain adequate sewer services, and
WHEREAS, the City is proposing a five percent (5%) rate increase to move the City of Kalispell
closer to cost -based rates which will collect sufficient revenue to cover the planned
operating and capital needs of the City's Wastewater/Sewer System, and
WHEREAS, prior to initiating any increase in the fees, schedules, rates, charges, and
classifications, the City is required, pursuant to Section 69-7-111, Montana Code
Annotated, to 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 I. That there is hereby set a Public Hearing on the 6th day of December,
2010, at 7:00 o'clock p.m. in the Council Chambers, City Hall,
Kalispell, Montana, to discuss a proposal to increase sewer rates by
five percent (5%).
SECTION II. 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 1ST DAY OF NOVEMBER, 2010.
Tammi Fisher
Mayor
ATTEST:
Theresa White
City Clerk
i
A Proposal to increase rates of the sewer utility of the City of Kalispell will be presented at a
Public Hearing, Monday, December 6, 2010, in the Council Chambers of City Hall, 201 1st Avenue
East, Kalispell, Montana, at 7:00 P.M. The increase in sewer rates will be effective with the January
1, 2011 billing.
The present rate schedule for sewer use is $4.19 per thousand (1,000) gallons used, with a
$1.88 monthly administrative fee. The proposed rate increase of $.21 per thousand gallons will result
in a rate of $4.40 per thousand gallons with a $.09 increase in the monthly administrative charge to
result in a $1.97 monthly administrative fee.
Following are examples of monthly usage charges covering sewer.
NOW
1-1-11
3,000 Gallons
$14.45
$15.17
Average Res. Usage 4,500 Gallons
$20.73
$21.77
6,000 Gallons
$27.02
$28.37
7,500 Gallons
$33.30
$34.97
The City is proposing a five percent (5%) rate increase to move the City of Kalispell closer to
cost -based rates which will collect sufficient revenue to cover the planned operating and capital
needs of the City's Wastewater/Sewer System.
Any person concerned with the proposed sewer rate increase may appear at this hearing and
make oral statements or present same in writing. Written comments may also be submitted for
Council consideration by delivering the same to the City Clerk prior to hearing.
If there are questions that might be answered by telephone you may call (406) 758-7720.
The charges will be billed bi-monthly.
Out of City rate 1.25 times the in -City rate.
Theresa White
City Clerk
Publish: November 14, 2010
November 21, 2010
November 28, 2010