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Home My WebLink AboutResolution No. R25-42 RESOLUTION NO. R25-42 A RESOLUTION APPROVING AN INCREASE TO THE CITY OF LAUREL'S WATER AND WASTEWATER RATES AND CHARGES TO BECOME EFFECTIVE ON JULY 10, 2025. WHEREAS, the current water and wastewater rates and charges in effect at the present time are not adequate to provide revenues with which to defray the increased costs of operation, maintenance, and capital of the City's water and wastewater distribution facilities and systems; WHEREAS, the provision of the water and wastewater systems and facilities is essential to the preservation of the public's health and welfare; WHEREAS, the new rates, must before taking effect, be approved by the City Council after advertising and conducting a public rate hearing pursuant to the City's Charter at Article I, Section 1.03(2) and MCA Section 69-7-111; WHEREAS, current budgetary requirements with respect to the operation of said facilities in addition to on-going and future projects require the proposed rates to become effective on or about July 10, 2025, to enable the City to proceed as expeditiously as possible to accomplish the objectives herein above recited; WHEREAS,pursuant to its Charter and Montana law,the City Council has determined that a public rate hearing must be advertised and held to gather documents,testimony,and other evidence regarding the proposed increases in water and wastewater rates and charges; WHEREAS, a notice of public hearing was mailed to all users of the City's water and wastewater system notifying them that, pursuant to Resolution No. R25-30, adopted on May 13,2025, it was the intent of the City to increase the rates and charges for water and wastewater services and Notice of the Public Hearing was published as required by Mont. Code Ann. § 69- 7-111; WHEREAS, a public hearing was held on the 241h day of June,2025, at 6:30 p.m. in the City Council Chambers, at City Hall, Laurel, Montana, for the purpose of gathering public comments and evidence regarding the proposed rate and charge increase; WHEREAS, every individual who attended the public hearing was given the opportunity to speak, present argument and/or to submit written comment into the hearing record; and WHEREAS, based upon the record created, the City Council is prepared to issue its decision pursuant to Mont. Code Ann. § 69-7-112. R25-42 Approve Water and Wastewater Rate Changes NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LAUREL, MONTANA: 1. That the City Council considers it both advisable and necessary to increase the municipal water and wastewater services rates and charges for all users in accordance with the rates and charges as specifically contained on the rate and charge schedule marked"Exhibit A"that is attached hereto and hereby incorporated into this Resolution by reference. 2. That the proposed increase in the rates and charges for the users of the municipal water and wastewater system is hereby approved and attached hereto and fully incorporated herein as "Exhibit A," and 3. That this Resolution shall be immediately filed with the City Clerk/Treasurer and shall become final and effective not less than ten (10) days after such filing. Introduced at a regular meeting of the City Council on the 24th day of June 2025 by Council Member Mackay. PASSED and APPROVED by the City Council of the City of Laurel on the 24th day of June 2025. APPROVED by the Mayor on the 24th day of June 2025. CITY OF LAUREL a �a C�I Dave Waggoner, M or ATTEST: `` %1Wtn/Av/z A i�►,n,,,��. _ r s �a= = ; SEAL =Q Str lerk- reasurer ''' •► f�O C011N .��. APPROVED AS TO FORM: �4111illik" % Aa 4 L L Michele L. Braukmann, Civil City Attorney R25-42 Approve Water and Wastewater Rate Changes City of Laurel's Proposed Water and Wastewater Utility Service Rates and Charges and Notice of Public Rate Hearing OFFICIAL NOTICE IS HEREBY GIVEN that the Laurel City Council will hold a public hearing on June 24,2025,at 6:30 p.m. in the Council Chambers at City Hall regarding proposed municipal water and wastewater rate increases.The Clerk/Treasurer will receive protests or objections,if any,in writing before the Council meeting up to and including the City Council meeting of June 24,2025. The City of Laurel is proposing an increase in water and wastewater rates to ensure the long-term reliability, safety, and sustainability of its utility services.Priorto last year's increase in the consumption of water and sewer volumetric usage rates, the city had not had rate increases since 2015.The cost of maintaining and operatingthe city's water and wastewater systems has significantly increased.Rising energy prices,labor costs,and the need for upgraded equipment have strained the current revenue levels. Additionally,much of Laurel's water infrastructure is aging and in need of critical repairs and replacements.This includes water lines,sewer mains,and the city's only water reservoir which was installed in 1968.To continue delivering potable water to our citizens,a new water reservoir is urgently needed.It is essential for the City of Laurelto deliver clean water and manage wastewater effectively.Without increased funding,the city is restricted to taking care of infrastructure needs or plan for future growth. The City is proposing to modify the existing water rates as follows: Based upon the average monthly usage by user from 2022 to 2024,the rate structure is estimated to increase the monthly water charge by the following amounts,based upon water meter size. Water Rate Structure FY 26-27 FY 27-28 FY 28-29 FY 29-30 Water Existing FY26-27 Proposed FY27-28 Proposed FY28-29 ProposedkFY29-30 Proposed Meter Existing Capital Proposed Capital Proposed Capital Proposed Capital posedCapital Size Rate Surchar a Base Rate Surchar a Base Rate Surchar a Base Rate Surchar ae Rate Surchar e 16% 16% 16% 16% 4% 4% 4% 4% 3/4" $24.61 $8.00 $28.55 $9.28 $33.12 $10,76 $34.44 $11.19 35.82 $11.64 1' $41.79 $14.32 $48.48 $16.61 $56.24 $19.27 $58.49 $20.04 $60.83 $20.84 1.25" $63.33 $22.24 $73.46 $25.80 $85.21 $29.93 $88.62 $31.13 $92.16 $32.38 1.5" $89.86 $32.00 $104.24 $37.12 $120.92 $43.06 $125.76 $44.78 $130.79 $46.57 2" $158.16 $57.12 $1B3.47 $66.26 $212.83 $76.86 $221.34 $79.93 $230.19 $83.13 3' $350.86 $128.00 $407.00 $14B.48 $472.12 $172.24 $491.00 $179.13 $510.64 $186.30 4' $624.26 $228.56 $724.14 $265.13 $840.00 $307.55 $873.60 $319.85 $908.54 $332.64 6' $1.401.17 $514.32 $1.625.36 $596.61 $1.885.42 $692.07 $.1960.84 $719.75 $2,039.27 $748.54 10" $3,869.58 $1.422.24 $4,488.71 $1.649.80 $5,206.90 $1.913.77 $5,415.18 $1.190.32 $5,631.79 $2.069.93 Volume Rate,$per 1,000 gallons Existing Threshold Rate FY 26-27 FY 27-28 FY 28-29 FY 29-30 Rosldenual 16% 16% 4% 4% 0-1,000 gat $2.17 $2.52 $2.92 $3.04 $3.16 1.001-5,000 gat $2.17 $2.52 $2.92 $3.04 $3.16 5.001-10.000 gat $2.71 $3.14 $3.64 $3.79 $3.94 10.001-20.000 gal $3.26 $3.78 $4.38 $4.56 $4.74 Over 20,000 gat $4.34 $5.03 $5.83 $6.06 $6.30 Commercial First 1,000 gat $3.27 1 $3.79 $4.40 $4-56 $4.76 Over1,000 gal $3.27 $3.79 $4.40 $4.58 $4.76 Industrial First 1,000 gat $4.02 $4.66 $5.41 $5.63 $5.86 Over 1,000 gal $4.02 1 $4.66 $5.41 $5.63 1 $5.86 The City is proposing to modify the existing wastewater rates as follows: Based upon the average monthly usage by user from 2022 to 2024,the rate structure is estimated to increase the monthly water charge by the following amounts,based upon water meter size. Wastewater Rate Structure FY 26-27 FY 27-28 FY 28-29 FY 29-30 Water Existing FY 26-27 Proposed FY 27-28 Proposed FY 28-29 Proposed FY 29-30 Proposed Meter Existing Capital Proposed Capital Proposed Capital Proposed Capital Proposed Capital Size Rate Surcharge Base Rate Surcharge Base Rate Surcharge Base Rate Surcharge Base Rate Surcharge 9% 9% 9% 9% 9% 9% 5% 5% 3/4" $19.24 $10.00 $20.97 1 $10.90 $22.86 $11.88 $24.92 $12.95 $26.17 $13.60 1' $34.44 $17-90 $37.54 $19.51 $40.92 $21.27 $44.60 $23.18 $46.13 $24.34 1.25" $53.49 $27.80 $58.30 $30.30 $63.55 $33.03 $69.27 $36.00 1 $72.73 1 $37.80 $76.96 $40.00 $83.89 $43.60 $91.44 $47.52 $99.67 $51.80 $104.fi5 $54-39 2- $137.37 $71.40 1149.79 $77.83 $16321 $64.83 $177.90 $12.46 $186.80 $97.08 3' $307.84 $160.00 $335.55 $174.40 $365.75 $190.10 $398.67 $207.21 $418.60 $217.57 4' $549.69 $285.70 $599.16 $311.41 $653.08 $339.44 $711.86 $369.99 $747.45 $38B.49 6' $1236.94 $642.90 $1348.26 $700.76 $1469.60 $763.83 $1601.86 $832,0 $1681.95 $B74.20 Volume Rate,$per 1,000 gallons Billable Water Existing Volume Rate FY 26-27 FY 27-28 FY 28-29 FY 29-30 9% 9% 9% 5% (1) $8.45 1 $9.21 $10.04 $10.94 $11.49 (1)Based on water use average from Octoberthrough April. The increase forthe water and wastewater base rates,volume rates,and the capital improvement surcharge will be raised annually on July 1011 of each year through FY 2029-2030.