Regular 2.
Regular City Council Meeting
- Meeting Date:
- 05/14/2012
- TITLE
- Public Hearing & Resolution Adopting Wastewater Rates and Fees
- PRESENTED BY:
- David Mumford
- Department:
- Public Works
Presentation:
Information
PROBLEM/ISSUE STATEMENT
The existing wastewater rates and fees are no longer adequate to provide for the operation and maintenance and capital investment necessary to continue providing quality service and infrastructure to the City's customers. Cost-of-service rate studies were completed for both water and wastewater in FY 2011 by Public Works staff for fiscal years 2012 and 2013 and an interim update was performed in FY 2012. During this interim update, it was determined that water rates require no adjustment for FY 2013, but wastewater rates need to be increased for electricity and chemical price increases, as well as to fund the construction of wastewater treatment plant improvements required to meet new Federal regulations for nitrogen and phosphorus removal. The preliminary design for these improvements is programmed in the Capital Improvement Plan in FY 2013 and for construction in FY 2015. A public hearing is required per MCA 69-7-111. The attached resolution specifies the proposed rates and fees. The proposed rate and fee adjustments include:
1. Increasing the wastewater volume rate and minimum monthly charges for all customer classes.
2. Adjusting the formula for wastewater System Development Fees (SDFs) for connections to the wastewater system with meters larger than four inches to correct the previous formula which had an error in it. There is no change in SDFs for any other meter connection sizes.
1. Increasing the wastewater volume rate and minimum monthly charges for all customer classes.
2. Adjusting the formula for wastewater System Development Fees (SDFs) for connections to the wastewater system with meters larger than four inches to correct the previous formula which had an error in it. There is no change in SDFs for any other meter connection sizes.
ALTERNATIVES ANALYZED
The City Council may:
• Approve the resolution
• Disapprove the resolution and continue to charge the current rates in FY 2013. If rates are not increased in FY 2013, it will require a significantly larger increase in FY 2014 in order to have sufficient money available to begin the Federally required improvements to the wastewater treatment plant and to have adequate rates in place to sell bonds. Failure to meet the Federal regulations would result in the City being non-compliant with the State and Federal Clean Water Acts and could result in fines, as well as the inability to service additional hookups.
• Approve the resolution
• Disapprove the resolution and continue to charge the current rates in FY 2013. If rates are not increased in FY 2013, it will require a significantly larger increase in FY 2014 in order to have sufficient money available to begin the Federally required improvements to the wastewater treatment plant and to have adequate rates in place to sell bonds. Failure to meet the Federal regulations would result in the City being non-compliant with the State and Federal Clean Water Acts and could result in fines, as well as the inability to service additional hookups.
FINANCIAL IMPACT
The proposed rate and fee amendments will generate approximately $1.3 million in additional wastewater revenues for FY 2013.
BACKGROUND
No additional background is available.