The existing water and 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 for water resale rates and water and wastewater System Development Fees (SDFs) were completed by CDM, Inc. Public Works staff concurrently performed cost-of-service rate studies for water retail rates and fees and wastewater rates and fees.  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 volume rate for resale customers (County Water District of Billings Heights).
  2. Increasing the wastewater volume rate and minimum monthly charges for all customer classes.
  3. Increasing the public and private fire protection charges which were last adjusted in 1996.
  4. Adjusting the water and wastewater system development fees (SDFs). The proposed structure for water will have a separate charge for residential versus non-residential accounts. Wastewater SDFs will continue with the current structure of a single charge for both residential and non-residential accounts for each meter size. 
  5. Adjusting miscellaneous water and wastewater fees and charges, most of which were last adjusted in 2008.

The City Council may:

  • Approve the resolution
  • Disapprove the resolution

The proposed rate and fee amendments will generate approximately $871,000 in additional water revenues and $2,047,000 in additional wastewater revenues for FY 2012.

No additional background is available.

• MCA 7-6-1604 requires governmental entities to have an advisory committee to review the calculating, assessing, and spending of system development fees.  The advisory committee must include at least one representative of the development community and one certified public accountant.  The City’s SDF committee is comprised of the Public Works Board and Public Works staff.  The individuals involved in the group are shown on Attachment A.  The committee met twice, once in February 2011 and once in April 2011 to review the proposed changes to the SDFs.  The SDF committee supports the recommendations being made to the Council.

• The Public Works Board also reviewed the overall financial picture of the water and wastewater utilities, which included the user rates.  This board supports all of the water and wastewater rates, fees, and charges being recommended to the Council.