21. Water Rate Adjustments and Sewer Rate Increase Notices1h� 0i kJy elm
Incorporated 1892
Telephone (406) 758-7700
FAX (406) 758-7758
Post Office Box 1997
Kalispell, Montana
Zip 59903-1997
Date: July 11, 1996
To: Al Thelen, Interim City Manager
From: John Wilson, Assistant City Engineer
Re: Water Rate Adjustments
Attached you will find a copy of the public notice for the proposed water rate
adjustments. The current rates have been in effect since 1993, when a 12% increase was
made to rates established in 1984.
The rate structure has been changed so that the number of dwelling units or offices
within a business will not enter into the billing formula. This will simplify the rates and
reduce water bills for many commercial customers with more than one office in a
building. Typical bills for nine levels of residential and commercial use are shown on the
attached notice. The bills for most professional offices will be similar to the examples for
residential accounts.
-- You will see some changes from the rates which we last discussed with the City Council.
it The service charge has been recalculated to include billing costs only and to divide those
costs equally between the water and sewer utilities. The rate per thousand gallons has
been adjusted to pick up the revenue which would otherwise have been paid out of the
General Fund for hydrant rental fees. This rate has also been increased to meet revenue
requirements for the F.Y. 97 budget, recovering expenses for operations and
maintenance, billing functions and debt service. These expenses include approximately
$16,000 in wages and benefits for the surveyor's aide which were reallocated to this
budget from the General Fund.
Our revenue projections are based on a typical annual metered water use of 736,639,000
gallons. We estimate the new water rates will recover $856,500, while the current water
rates would recover approximately $769,000 for the same volume of water used. Of this
$87,500 difference, $63,300 would have been billed to the General Fund under our old
hydrant rental program.
As we raise the sprinkling rate from $0.62 to $0.75 per thousand gallons, approximately
$22,000 will be redistributed from domestic to sprinkling revenue. Even so, we will
provide sprinkling water for approximately $100,000 less than the annual cost of service.
As in the past, this amount will be recovered through the rate charged for domestic
water use.
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 11
Jim Atkinson
Ward III
Lauren Granmo
Ward III
Pamela B. Kennedy
Ward IV
M. Duane Larson
Ward IV
CITY OF KALISPELL
NOTICE OF PROPOSED CHANGE N WATER RATES
A proposal to change the rate structure and charges imposed by the water utility of the City of
Kalispell will be presented in a Public Hearing, Monday, August 19th, 1996, in the Council Chambers of City
Hall at 7:00 P.M. The rates and charges, if adopted, would be effective after ten (10) days of being filed with
the Clerk of Council.
The present basic rate schedule for water use is $ 1.29 per thousand (1,000) gallons used with a
minimum of $7.74 for six thousand (6,000) gallons bi-monthly. The proposed change to the rates and
charges will result in a $2.65 charge for administrative cost per meter and a rate of $1.26 per thousand
gallons with no minimum. A rate of $0.98 per thousand gallons will apply to water usage over 30,000 gallons
per billing period and sprinkling usage will be billed at the rate of $0.75 per thousand gallons. The number
of dwelling units will no longer be a factor in the rate formula.
The change in the rate structure will result in customers being charged appropriately for water use
and expenses incurred. The charges are intended to recover the costs incurred by the Water Department for
operations and maintenance, billing functions and debt service.
Any person concerned with these proposals may appear at this hearing and make oral statements or
present the same in writing. Also written continents may be submitted for Council consideration by delivering
them to the Clerk of Council prior to the hearing.
Detailed schedules for services are on file in the office of the Finance Director and are available for
examination by anyone interested. If there are questions that might be answered by telephone you may call
(406) 758-7701.
The following are examples of bi-monthly charges covering water:
NOW
PROPOSED
Typical Residential Account 5/8"Meter)
0 Gallons
$ 7.74
$2.65
3,000 Gallons
$ 7.74
$6.43
6,000 Gallons
$ 7.74
$10.21
10,000 Gallons
$12.90
$15.25
20,000 Gallons
$25.80
$27.85
Typical Commercial Account (1" Meter)
35,000 Gallons
$41.96
$45.36
50,000 Gallons
$58.46
$60.11
75,000 Gallons
$84.96
$84.68
100,000 Gallons
$111.46
$109.25
Out of city charges will be applied as in the past at 1.25%.
PUBLISH: August 1, 1996
August 8, 1996
August 15,1996
t
i II O J 1�1
Incorporated 1892
Telephone (406) 758-7700
Douglas Rauthe
FAX (406) 758-7758
Mayor
Post Office Box 1997
Kalispell, Montana
Al Thelen
Zip 59903-1997
Interim City Manager
City Council
TO: Mayor Rauthe and City Council Members
DATE: JULY 10, 1996 Members:
FROM: Amy Robertson
Gary W. Nystul
Ward 1
1997 BUDGET
PROPOSED
per thousand
FY97
M & O-WWTP LESS 20%
$ 663,214.00
$ 1.21
REPLACEMENT-Kal only
$ 244,993.00
$ 0.45
COLLECTION
$ 281,263.00
$ 0.51
DEBT -CITY ONLY
$ 444,222.00
$0.81
(billable 548,243,000)
$ 1,633,692.00
S2.98
BILLING
$ 79,773.00
S2 45
ACTUAL
FY96
$ 622,798.01
$ 244,993.00
S 249,003.00
$ 418 328.00
S 1,535,122.01
$ 70,093.00
perthousand I CURRENT Cliff Collins
RATE Ward 1
$ 1.15
Norbert F. Donahue
$ 0.45
Ward II
$ 0.46
$ 0 77
Dale Haarr
$ 2.83
S 2.54 Ward II
Jim Atkinson
Ward III
$ 2.35
$ 0.00
Lauren Granmo
Ward III
The proposed rate for the Sewer users is based on the budgets of the Sewer and WWTP for FY97.
'have provided you with actual numbers for FY96 and will explain the differences. The WWTP
numbers are adjusted for the Evergreen district to reflect only the amounts we need to recover from City rate payers.
WWTP- M & O costs have increased primarily in the area of electrical and contract services for Glacier Gold.
Additionally, the equipment maintenance costs are increased as the plant is now showing wear and tear and
expected maintenance will become more intensive. Cleaning of the digester is expected to cost $50,000.
WWTP REPLACEMENT- is our share of the replacement funds per the agreement with Evergreen Sewer.
SEWER COLLECTION- includes increased maintenance funds for manhole rehab, electricity, telephone and alarms.
BILLING- costs are proposed to be recovered as a flat fee and include a portion of administration, data processing,
meter reading, postage and bad debt expense. Bulk mailing is going up .02 per bill.
DEBT SERVICE- schedules for debt service are increased this year.
The user rate does not provide funds for the replacement of the collection system. Hookup fees are allocated for
replacement of the Collection System and the WWTP based on the recent schedule adopted by City Council.
Pamela B. Kennedy
Ward IV
M. Duane Larson
Ward IV
OPERATING
CASH
FY96
S 333,845.91
FY95
$ 264,812.81
FY94
S 268,971.99
FY93
S 587,550.19
FY92
S 794,011.23
FY91
S 545,184.77
FY96 cash has rebounded due to Evergreen's
payment and the reduction of the WWTP
replacement account -those funds returned to
operating cash.
I would recommend having operating cash
available to fund 3 to 4 months of operations.
SERVICE BILLED
_ FY96
$ 1,840,878.00
FY95
$ 1,732,036.00
FY94
$ 1,437,339.00
FY93
$ 1,437,243.00
FY92
$ 1,455,691.00
FY91
$ 1,057,129.00
SEWER OPERATING CASH
1000 ---- ----
800
600
400
200
0
FY96 FY95 FY94 FY93 FY92 FY91
7/ 10/96
1� A�Cash
CITY OF KALISPELL
NOTICE OF PROPOSED CHANGE IN SEWER RATES
A proposal to change the rates and charges imposed by the sewer utility of the City of
Kalispell will be presented in a Public Hearing, Monday, August 19th, 1996, in the Council Chambers
of City Hall at 7:00 P.M. The rates and charges, if adopted, would be effective after ten (10) days of
being filed with the City Clerk.
The present basic rate schedule for sewer use is $2.54_ per thousand (1,000) gallons used with
a minimum of S 15.23 for six thousand (6,000) gallons bi-monthly. The proposed change to the rates
and charges will result in a $2.65 charge for customer service cost per meter and a rate of $2.9$_ per
thousand gallons with no minimum. The number of dwelling units will cease to be a factor in the rate
formula.
The change in rates and charges is intended to cover additional operational expenses
anticipated to be incurred by the sewer utility over the next two years.
Any person concerned with these proposals may appear at this hearing and make oral
statements or present the same in writing. Also written comments may be submitted for Council
consideration by delivering them to the Clerk of Council prior to the hearing.
Detailed schedules for services are on file in the office of the Finance Director and are
available for examination by anyone interested. If there are questions that might be answered by
telephone you may call (406) 758-7701.
The following are examples of bi-monthly charges covering sewer:
NOW
PROPOSED
0 Gallons
$15.23
$ 2.65
3,000 Gallons
$15.23
$11.59
6,000 Gallons
$15.23
$20.53
10,000 Gallons
$25.40
$32.45
20,000 Gallons
$50.80
$62.25
Out of city chages will be applied as in the past at 1.25%.
A requirement of EPA Grants is that users of the utility services be advised annually of the disposition
of Sewer Funds. For Fiscal 1997 the City of Kalipsell will spend its Sewer Revenues as follows:
MAINTENANCE AND OPERATION OF THE WASTE WATER PLANT 40.60%
MAINTENANCE AND OPERATION OF LINES AND LIFT STATIONS 17.22%
DEBT SERVICE - BONDS, INTEREST AND RESERVES 27.19%
REPLACEMENT RESERVES 15.E
100%
PUBLISH: August 1, 1996
August 8, 1996
August 15,1996