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10. Public Hearings - Sewer and Water - Rules Making Authority for BothCITY OF KALISPELL NOTICE OF PROPOSED RULE ADOPTION FOR KALISPELL SEWER UTILITY Notice is hereby given that the City Council of the City of Kalispell shall consider a proposed addition to the Rules and Regulations of the Kalispell Sewer Department at a Public Hearing, Monday, August 19, 1996, in the Council Chambers of City Hall at 7:00 P.M. The addition to the Rules would take effect after September 1, 1996. If adopted, Rule V of the Sewer Department Regulations shall be amended by adding the following: (5) Annexation Required for Initiation or Continuation of Sewer Service Any customer now receiving, or hereafter initiating, sewer service supplied by the Kalispell Sewer Department, shall be deemed to have consented to, and waived the right to protest, annexation to the City of Kalispell, as a condition of continuing or initiating said sewer service. Any person concerned with the proposed rule 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. Publish: August 1, 1996 August 8, 1996 August 15, 1996 CITY OF KALISPELL NOTICE OF PROPOSED RULE ADOPTION FOR KALISPELL WATER UTILITY Notice is hereby given that the City Council of the City of Kalispell shall consider a proposed addition to the Rules and Regulations of the Kalispell Water Department at a Public Hearing, Monday, August 19, 1996, in the Council Chambers of City Hall at 7:00 P.M. The addition to the Rules would take effect after September 1, 1996. If adopted, Rule V of the Water Department Regulations shall be amended by adding the following: (10) Annexation Required for Initiation or Continuation of Water Service Any customer now receiving, or hereafter initiating, water service supplied by the Kalispell Water Department, shall be deemed to have consented to, and waived the right to protest, annexation to the City of Kalispell, as a condition of continuing or initiating said water service. Any person concerned with the proposed rule 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. Publish: August 1, 1996 August 8, 1996 August 15, 1996 C-135-96 � 7P��I;V0'hdl�uf� • incorporated 1892 Telephone (406) 758-7 700 I-AX (406) 758-7 758 Post Office Box 1997 Kalispell, Montana Zip i9903-1997 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. 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 Nlavor AI Thelen Interim Citv !Manager Citv Council .'Members: Cary W. Nvstul `:bard I Cliff Collins Ward I Norbert F. Donahue `.yard 11 Dale Haarr `.yard 11 Jim Atkinson Ward III Lauren Granmo 'A'ard III Pamela B. Kennedy Ward IV ,l. Duane Larson Ward IV