06. Resolution 4267 - Proposed Water Hook-Up FeesRESOLUTION NO. 4267
A RESOLUTION TO ADOPT THE FEES, SCHEDULES, RATES, CHARGES AND
CLASSIFICATION IMPOSED ON THE CUSTOMERS OF THE CITY OF KALISPELL
WATER UTILITY.
WHEREAS, the City of Kalispell has a need to replace and improve
infrastructure of the City's water utility, and
WHEREAS, the City's water connection fee of $112 to $896 ($140-
$1120 outside the City) has not kept pace with either the
costs of inflation or the City's infrastructure
replacement needs, and
WHEREAS, in order to replace and improve the water system it is
necessary to build a capital cash account to be used to
replace all or a portion of the water utility system, and
WHEREAS, in order to provide for the replacement of the
infrastructure of the water utility based upon
inflationary factors, it is appropriate that the City
index the connection fees, and
WHEREAS, said proposed adjustments of the water connection fees
are reasonable and just, and
WHEREAS, the City Council did, on April 15, 1996 set a public
hearing to be held on June 3, 1996 on said proposed
adjustments of water connection fees of the Water Utility
Service of the City of Kalispell and gave the necessary
Notice thereof as required by Section 69-7-111, MCA, and
WHEREAS, due and proper Notice of said public hearing has been
given by the Clerk of Council by publication and mailing
as required by law, and
WHEREAS, said public hearing was duly held by the City Council at
a public meeting thereof in Kalispell City Hall beginning
at 7:00 P.M. on June 3, 1996, and all persons appearing
at said hearing and expressing a desire to be heard were
heard, and all written comments thereon furnished to the
Clerk of Council at said meeting or prior thereto were
given consideration by the Council.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL;
SECTION I. That the fees, schedules, rates, charges and
classifications applicable to the use of the
City of Kalispell Water System and other
services performed by said utility as set
forth on Exhibit "A" attached hereto and by
this reference made a part hereof, are found
to be just and are hereby established and
SECTION II.
adopted to be imposed for water utility
services to the inhabitants of the City of
Kalispell and those other persons served by
its water utility service.
This decision is final ten (10) days after
filing of this Resolution with the City
Finance Director. The Finance Director shall
file a copy hereof with the Public Service
Commission of Montana at that time.
PASSED AND APPROVED BY THE CITY COUNCIL AND THE MAYOR OF THE CITY
OF KALISPELL THIS DAY OF JUNE, 1996.
Douglas D. Rauthe - Mayor
ATTEST:
Debbie Gifford, CMC
Clerk of Council
SCHEDULE G
EXHIBIT ' A 1
(Proposed Fees)
Indexed Water Connection Fee Schedule (no inflation, 5 percent interest)
This reprised connection fee schedule is calculated in accordance with the accepted practices published by the American
Planning Association. A 3% indexed adjustment is applied to the unamorifted, infrsstnucD= inveMnent to place the
canying cost of excess capacity on the late coming aistomers. These t&Wax are derived hom fonwass kientkal 10 those
which have been used in the past for sewer cowwllon mace.
r
1996
$642
$963
1997
$674
$1,011
1998
$708
$1,062
1999
$743
$1,115
2000
$780
$1,171
2001
$819
51,229
2002
$860
$1,291
2003
$903
$1,355
2004
$949
$1,423
2005
$996
$1,494
2006
$1,046
$1,569
2007
$1,098
$1,647
2008
$1,153
$1,729
2009
$1,211
$1,816
2010
$1,271
$1,907
2011
$1,335
$2,002
2012
$1,401
$2,102
2013
$1,471
$2,207
Out of City Fee = City Fee X 1.5
Indexed Connection Fee Schedule for 1996
Meter
Size
In City
Fee
Out of City
Fee
5i8"
$642
$963
314"
$924
$1,387
1"
$1,644
$2,465
11/2"
$3,698
$5,547
2"
$6,574
$9,861
3"
$14,792
$22,188
4" and larger
$26,296
$39,444
City of Kalispell Water Connection Fees
Water Connection Fees for
Water Connection Fees for
Water Connection Fees for
1996
1997
1998
Meter
in City
Out of City
Meter
In City
Out of City
Meter
In Citv
Out of Citv
Size
Fee
Fee
Size
Fee
Fee
Size
Fee
Fee
5/8"
$642
$963
5/8"
$674
$1,011
5/8"
$708
$1,062
3/4"
$924
$1,387
3/4"
$971
$1,456
3/4"
$1,019
$1,529
1"
$1,644
$2,465
1"
$1,726
$2,589
1"
$1,812
$2,718
11/2"
$3,698
$5,547
11/2"
$3,883
$5,824
11/2"
$4,077
$6,115
2"
$6,574
$9,861
2"
$6,903
$10,354
2"
$7,248
$10,872
3"
$14,792
$22,188
31'
$15,531
$23,297
Y
$16,308
$24,462
4"
$26,296
$39,444
4"
$27,611
$41,417
4"
$28,992
$43,488
Water Connection Fees for
Water Connection Fees for
Water Connection Fees for
1999
2000
2001
Meter
In City
Out of City
Meter
In City
Out of City
Meter
In City
Out of City
Size
Fee
Fee
Size
Fee
Fee
Size
Fee
Fee
5/8"
$743
$1,115
5/8"
$780
$1,171
518"
$819
$1,229
3/4"
$1,070
$1,605
3/4"
$1,124
$1,686
3/4"
$1,180
$1,770
1"
$1,903
$2,854
1"
$1,998
$2,997
1"
$2,098
$3,146
11/2"
$4,281
$6,421
11/2"
$4,495
$6,742
11/2"
$4,720
$7,079
2"
$7,610
$11,415
2"
$7,991
$11,986
2"
$8,390
$12,586
3"
$17,123
$25,685
3"
$17,979
$26,969
3"
$18,878
$28,318
4"
$30,441
$45,662
4"
$31,963
$47,945
4"
$33,562
$50,342
Water Connection Fees for
Water Connection Fees for
Water Connection Fees for
2002
2003
2004
Meter
In City
Out of City
Meter
In City
Out of City
Meter
In City
Out of City
Size
Fee
Fee
Size
Fee
Fee
Size
Fee
Fee
5/8"
$860
$1,291
5/8"
$903
$1,355
5/8"
$949
$1,423
3/4"
$1,239
$1,858
3/4"
$1,301
$1,951
3/4"
$1,366
$2,049
1"
$2,202
$3,304
1"
$2,313
$3,469
1"
$2,428
$3,642
11/2"
$4,956
$7,433
11/2"
$5,203
$7,805
11/2"
$5,464
$8,195
2"
$8,810
$13,215
2"
$9,250
$13,876
2"
$9,713
$14,569
3"
$19,822
$29,733
3"
$20,813
$31,220
3"
$21,854
$32,781
4"
$35,240
$52,859
4"
$37,002
$55,502
4"
$38,852
$58,277
City of Kalispell Water Connection Fees
Water Connection Fees for
Water Connection Fees for
Water Connection Fees for
2005
2006
2007
Meter
In City
Out of City
Meter
In City
Out of City
Meter
In City
Out of City
Size
Fee
Fee
Size
Fee
Fee
Size
Fee
Fee
5/8"
$996
$1,494
5/8"
$1,046
$1,569
5/8"
$1,098
$1,647
3/4"
$1,434
$2,151
3/4"
$1,506
$2,259
3/4"
$1,581
$2,372
1"
$2,550
$3,824
1"
$2,677
$4,016
1"
$2,811
$4,216
11/2"
$5,737
$8,605
11/2"
$6,024
$9,035
11/2"
$6,325
$9,487
2"
$10,199
$15,298
2"
$10,708
$16,063
2"
$11,244
$16,866
3"
$22,947
$34,420
3"
$24,094
$36,141
3"
$25,299
$37,948
4"
$40,794
$61,191
4"
$42,834
$64,251
4"
$44,976
$67,463
Water Connection Fees for
Water Connection Fees for
Water Connection Fees for
2008
2009
2010
Meter
In City
Out of City
Meter
In City
Out of City
Meter
In City
Out of City
Size
Fee
Fee
Size
Fee
Fee
Size
Fee
Fee
5/8"
$1,153
$1,729
5/8"
$1,211
$1,816
519"
$1,271
$1,907
3/4"
$1,660
$2,490
3/4"
$1,743
$2,615
3/4"
$1,830
$2.746
1"
$2,952
$4,427
1"
$3,099
$4,649
1"
$3,254
$4,881
11/2"
$6,641
$9,961
11/2"
$6,973
$10,459
11/2"
$7,322
$10,982
2"
$11,806
$17,709
2"
$12,396
$18,595
2"
$13,016
$19,524
3"
$26,564
$39,846
3"
$27,892
$41,838
3"
$29,287
$43,930
4"
$47,224
$70,837
4"
$49,586
$74,379
4"
$52,065
$78,097
Water Connection Fees for
Water Connection Fees for
Water Connection Fees for
2011
2012
2013
Meter
In City
Out of City
Meter
In City
Out of City
Meter
In City
Out of City
Size
Fee
Fee
Size
Fee
Fee
Size
Fee
Fee
5/8"
$1,335
$2,002
5/8"
$1,401
$2,102
5/8"
$1,471
$2,207
3/4"
$1,922
$2,883
3/4"
$2,018
$3,027
3/4"
$2,119
$3,178
1"
$3,417
$5,125
1"
$3,588
$5,381
1"
$3,767
$5,650
11/2"
$7,688
$11,532
11/2"
$8,072
$12,108
11/2"
$8,476
$12,714
2"
$13,667
$20,501
2"
$14,350
$21,526
2"
$15,068
$22,602
3"
$30,751
$46,126
3"
$32,288
$48,433
3"
$33,903
$50,854
4"
$54,668
$82,002
4"
$57,402
$86,102
4"
$60,272
$90.407
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I e (iIy 0iKallspell
Incorporated 1892
Telephone (406) 758-7700
FAX (406) 758-7758
Post Office Box 1997
Kalispell, Montana
Zip 59903-1997
Date: June 3, 1996
To: Al Thelen, Interim City Manager
From: John Wilson, Assistant City Engineer VcCG
Re: Indexed Water Connection Fees
This memorandum is written with respect to the proposed 5% annual adjustment to
water connection fees. I believe we all understand the intent of indexing fees is to
place the carrying cost of excess capacity on the late coming customers. However,
there has been some discussion as to the appropriateness of the 5% figure.
This method and this value were first suggested to us in the American Planning
Association's manual on Development of Impact Fees. In preparing our connection
fee formula, we used, their indexing value of 5% as a starting point for discussion.
Considering the 18 year term of our fee schedule and the history of inflation rates
over a similar period of time, we settled on 5% as a reasonable number.
We have spoken with the cities of Billings and Bozeman, as well as the Public Service
Commission (PSC). Representatives from both cities have said their fees are
reviewed and increased on a regular basis, rather than following an indexed multi -year
schedule. Their practice is to use the Consumer Price Index (CPI) for adjustments
because the value can be more easily justified in the event of a dispute. The
representative of the Public Service Commission did not take exception to our use of
a multi -year indexed fee schedule, but he did recommend some correlation to the CPI.
A review of the CPI for all urban consumers, considering all commodities and
services, shows an average annual price increase of 3.5% over the last 10 years and
2.8% over the last 5 years. If the Council should prefer to index fees with respect to
the CPI, staff recommends that fees be adjusted annually at the set rate of 3%. The
advantage would be that a definite long term schedule could be published. This
would give some predictability to connection for the coming years and we would
avoid the adminis`rative chore of annual adjustments. In the event of a dispute, the
3% rate could be shown to bn representative of the CPI at the time when the fee
schedule was established.
Douglas Rauthe
Mayor
Al Thelen
Interim City Manager
City Council
Members:
Gary W. Nystul
Ward I
Cliff Collins
Ward I
Norbert F. Donahue
Ward II
Dale Haarr
Ward II
Jim Atkinson
Ward III
Lauren Granmo
Ward III
Pamela B. Kennedy
Ward IV
M. Duane Larson
Ward IV