9. Resolution 4579 - Notice of Public Hearing - Sewer Ratesr City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903-1997 -Telephone (406)758-7700 Fax(406)758-7758
TO: Mayor and City Council
FROM: Glen Neier, City Attorne 4k
SUBJECT: Sewer - Resolution Calling for Public Hearing.
MEETING DATE: August 21, 2000
BACKGROUND:
The City has not raised Sewer rates since 1991. An analysis
of the financial condition of the Sewer Utility indicates that the
City is not properly providing coverage in accordance with the 1991
Bond Resolution. Further, maintenance and operation expense of
sewer collection are exceeding revenue generated through the tariff
schedule.
In order to raise sufficient funds for bond coverage and to
sustain maintenance and operation, the City needs to raise sewer
rates by 10 % . It is anticipated that a 10% increase in revenues
will bring in about $220,000 per year.
Resolution No. 4579 sets a public hearing on the proposed
increase in rates for October 16, 2000. We have included a copy of
the Notice which will be published and mailed for your information.
At the meeting of October 16, 2000 or soon thereafter, the Council
will consider a Resolution increasing the fees, schedules, charges,
rates and classifications of the Sewer Utility. If passed, the new
rates will take effect with the January, 2001 billing cycle.
A motion and vote adopting Resolution No. 4579 is in order.
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RESOLUTION NO. 4579
A RESOLUTION SETTING A DATE FOR 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
SEWER UTILITY.
WHEREAS, the City of Kalispell's Sewer Utility is not currently in
compliance with certain revenue bond covenants requiring
the City have sufficient revenue to secure debt
retirement at the required rate of 125%, and
WHEREAS, increases in the cost of maintenance and operation of the
Sewer Utility are currently exceeding revenue provided by
the rate structure, and
WHEREAS, the City, in order to fund revenue bond coverage and
provide for maintenance and operation of the City Sewer
Utility, must raise additional revenues of ten percent
(10%) through an increase in fees and rates charged to
customers of the City sewer utility, and
WHEREAS, an increase of ten percent (10%) in the sewer rate will
generate approximately $220,000 per year, 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 16th day of October, 2000, at 7:00 o'clock
P.M. M.S.T. in the Council Chambers, City
Hall, Kalispell, Montana, to discuss a
proposal to yield a 10% increase in the total
revenues to finance the revenue bond coverage
and increases in the cost of maintenance and
operation of the City sewer utility.
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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 DAY OF , 2000.
Wm. E. Boharski
Mayor
Attest:
Theresa White
City Clerk
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CITY OF KALISPELL
NOTICE OF PROPOSED RATE INCREASE
A Proposal to increase rates of the sewer utility of the City of
Kalispell will be presented at a Public Hearing, Monday, October 16,
2000, in the Council Chambers of City Hall, 312 1st Avenue East,
Kalispell, Montana, at 7:00 P.M. The increase in sewer rates will be
10% of the total revenue and would be effective with the January, 2001
billing.
The present rate schedule for sewer use is $2.98 per thousand
(1000) gallons used, with a $2.56 billing fee per billing cycle. The
proposed rate increase of 10% will result in a rate of $3.28 per
thousand (1000) gallons. The billing fee will not change.
The City will utilize the rate increase to fund revenue bond
coverage and provide for maintenance and operation of the City Sewer
Utility. It is anticipated that a 10% increase in sewer rates will
generate approximately $220,000 per year.
Any person concerned with the proposed sewer rate increase may
appear at this hearing and make oral statements or present same in
writing. Also written comments may be submitted for Council
consideration by delivering the same to the City Clerk prior to
hearing.
Detailed schedules for services are on file in the office of the
City Clerk and are available for examination by anyone interested.
If there are questions that might be answered by telephone you may
call (406) 758-7720.
RATES IN EFFECT
Sewer per M
NOW 1-1-01
$2.98 $3.28
Following are examples of bi-monthly charges covering sewer.
Now 1-1-01
6,000 Gallons $17.88 $19.68
10,00 Gallons $29.80 $32.80
12,000 Gallons $35.76 $39.36
Multiple user and out of city charges will be applied as in the
past.
Publish: September 23, 2000
September 30, 2000
October 7, 2000
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