Sewer User Rate Increase by xiuliliaofz

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									Sewer User Rate Increase
 October 6, 2008: City council set a public hearing to
 consider adopting a resolution amending the sewer
 user rates.

 October 17, 2008: notice announcing the rate
 increase and date of the public hearing was mailed to
 all sewer users.

 November 3, 2008: public hearing was held.
Sewer User Rate Increase
            The increase will be the first in 8 years:
                                              Effective    Effective    Effective    Effective
            Customer Class                   01/01/2009   01/01/2010   01/01/2011   01/01/2012
            Single Family Residential:
              Semi-Annual Billing Increase     $3.44        $3.64        $3.77        $4.03
                       Percentage Increase      5%           5%           5%           5%
            Multiple Family Residential         5%           5%           5%           5%
            Commercial                          5%           5%           5%           5%
            Restaurants                         5%           5%           5%           5%
            Hospitals                           5%           5%           5%           5%
            Schools                             5%           5%           5%           5%
            Industrial                          5%           5%           5%           5%




                   At the end of 4-years, the total residential
                         rate increase will equal $14.88

                      Current rate = $68.99 every 6-months
                       Future rate = $83.87 every 6-months
Sewer User Rate Increase
                                                                                MONTANA
Montana                                    Kalispell                                                                             $31.70
Monthly Rate                               Bozeman                                                                        $28.92
Comparison
                                         Llivingston                                                           $24.15

                                             Helena                                                        $23.54

                                           Belgrade                                                    $21.73

                                         Great Falls                                                                                        With Increase
                                                                                                      $21.30
                                                                                                                                            Current Charge
                                              Havre                                                   $21.07

                                            Billings                                           $18.85

                                    Butte-Silver Bow                              $13.50

                                           Missoula                                 $13.99
                                                                              $11.50

Source: 2007 AE2S
                                             Sidney                 $6.58
North Central Utility Rate Survey
                                                       $-   $5.00    $10.00     $15.00       $20.00     $25.00          $30.00     $35.00
Sewer User Rate Increase - 2008
                 Basis of Increase




                                     Headworks $6.7M

    Collection
     System
      $4.4 M                         Collection System
                  Headworks
                                     Completion (Voluntary
                    $6.7M            Nutrient Reduction
                                     Program Commitment)
                                     $4.4M
Sewer Finances ~ FY 00 - 09
  7,000,000
7,000,000
            Rate Increases
7,000,000
  6,000,000
6,000,000
                                                                                                        Revenues
6,000,000

  5,000,000                                                                                             O&M and Debt
5,000,000
5,000,000

  4,000,000
4,000,000
4,000,000


  3,000,000
3,000,000


2,000,000
  2,000,000
2,000,000


1,000,000
  1,000,000
1,000,000

        -                                                                                               Replacement and
        --    FY 00    FY 01     FY 02   FY 03    FY 04   FY 05    FY 06    FY 07    FY 08    FY 09       Depreciation (R&D)
               FY 00
              FY 00    FY 0101
                         FY        FY 02 FYFY 03 FYFY 04 FY FY 05 FY FY 06 FY FY 07 FY 08 08 FY 09 09
                                 FY 02      03      04      05       06       07       FY       FY
Sewer R&D Expenditures
  2,500,000




  2,000,000
                                                                                  $1.55 M

  1,500,000




  1,000,000




   500,000




          -
              FY 03   FY 04   FY 05   FY 06   FY 07   FY 08   FY 09   7 yr Ave.
Depreciation ~ FY 00 - 09
                                        Depreciation
 2,500,000




 2,000,000




 1,500,000




 1,000,000




  500,000




         -
             FY 00   FY 01   FY 02   FY 03   FY 04   FY 05   FY 06   FY 07   FY 08   FY 09
Funding of Depreciation ~ FY 10 - 13
3,000,000




2,500,000




2,000,000




1,500,000                                                                                             Depreciation Expense
                                                                                                      R & D Funding


1,000,000




 500,000




        -
            FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10   FY 11   FY 12 FY 13
Sewer Finances ~ FY 10 - 13
                                                                        FY 09
 9,000,000
9,000,000

 8,000,000
8,000,000                                                                                                   Revenues

 7,000,000
7,000,000                                                                                                   O&M and Debt
                                                                                                                Headworks
 6,000,000
6,000,000
                                                                                                            Rattlesnake Sewer
  5,000,000
5,000,000

 4,000,000
4,000,000

  3,000,000
3,000,000

 2,000,000
2,000,000

  1,000,000
1,000,000                                                                                                   Replacement and
                                                                                                              Depreciation (R&D)
            -
        -
                       FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY         11     12 FY 13
                 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 10FYFY 11FYFY 12 FY 13
                FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13
Infrastructure Improvements
           Basis of Increase

    2008                          2009

                               Collection
                                System
                                  $1 M




                                  Headworks
                                     $9M
Proposed Sewer Rate Increase
                                              Effective 1/1/10

               Customer Class                    FY 10           FY 11   FY 12   FY 13
   Class 101-Single Family Residential            5%             5%      5%      5%
   Class 102-Multiple Family Residential          5%             5%      5%      5%
   Class 200-Commercial                           5%             5%      5%      5%
   Class 300-Restaurants                          5%             5%      5%      5%
   Class 400-Hospitals                            5%             5%      5%      5%
   Class 500-Schools                              5%             5%      5%      5%
   Class 600-Industrial                           5%             5%      5%      5%


                                           Model Rate Increases*

               Customer Class                    FY 10           FY 11   FY 12   FY 13
   Class 101-Single Family Residential
   Class 102-Multiple Family Residential
   Class 200-Commercial                                          + 8%    + 8%    + 8%
   Class 300-Restaurants                                                 + 3%
   Class 400-Hospitals                                           + 8%    + 8%    + 8%
   Class 500-Schools                                             + 8%    + 8%    + 8%
   Class 600-Industrial                                          + 8%    + 8%    + 8%


   *Consider in six months
Sewer Rate Increase by Class
                                                                    First Year

                                                          Average           Average

                                                             Bill                Bill

                                                          Monthly            Annual

                                           Proposed       Effect of         Effect of

                                             Rate          a Rate            a Rate

                          Customer Class   Increase       Increase          Increase

   Class 101-Single Family Residential       5%       $     0.57        $        6.90

   Class 102-Multiple Family Residential     5%       $     0.48        $        5.78

   Class 200-Commercial                      5%       $     2.05        $        24.58

   Class 300-Restaurants                     5%       $ 12.70           $   152.38

   Class 400-Hospitals                       5%       $ 26.39           $   304.66

   Class 500-Schools                         5%       $     7.04        $        84.44

   Class 600-Industrial                      5%       $ 335.08          $ 4,021.00

								
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