Notice of Water Rate Increase & Public Hearing | October 4, 2018
NOTICE IS HEREBY GIVEN that on September 6, 2018, the Town Council (the “Council”) of the Town of Big Sandy, Montana (the “Town”), adopted a Resolution of Intention of the Town of Big Sandy, Montana to Increase Water Rates for the Users of the System.
The Town anticipates issuing $574,000 of water system revenue bonds (the “Bonds”) for the purpose of paying a portion of the costs of making improvements (the “Improvements”) to the Town’s municipal water system (the “System”). The Town has worked with Bear Paw Development Corporation of Northern Montana, of Havre, Montana and has determined that it is necessary for the Town to increase its water rates in order to pay the principal of and interest on the Bonds and its other water revenue bonds, to provide for adequate operation and maintenance on the System, and to maintain or build necessary reserves.
The Town currently charges users of the System a monthly base rate of $28.60 per user (the “Base Rate”). In addition to the Base Rate, the Town currently charges users of the System a monthly water usage charge of $2.25 per 1,000 gallons consumed per connection or proportionate charge for gallons of water consumed in excess of 4,000 gallons per month (the “Usage Charge”). The monthly charge for the use and availability of the System is the sum of the Base Rate and the Usage Charge (such sum, the “Monthly Charge”)
As of the November 2018 billing, the Council proposes to increase the Base Rate by $17.40, for a total proposed monthly base rate charge of $46 per user (the “Proposed Base Rate”). In addition, the Town proposes to increase the monthly Usage Charge by $0.75 to $3.00 per 1,000 gallons consumed per connection in excess of 4,000 gallons per month (the “Proposed Usage Charge”). The Monthly Charge is proposed to be the sum of the Proposed Base Rate and the Proposed Usage Charge (such sum, the “Proposed Monthly Charge”).
The Proposed Monthly Charge for a typical user of the System using 6,000 gallons of water a month represents an increase of $18.90 per month over the current Monthly Charge (or approximately 57% percent over the current Monthly Charge).
On October 4, 2018, commencing at 7:00 p.m. at the Big Sandy Town Hall, 115 Johannes Avenue, in Big Sandy, Montana, the Council will conduct a public hearing and pass upon all protests against the proposed water rate increase. Further information about the proposed rate increase may be obtained by contacting Wendy Kleinsasser, Town Clerk-Treasurer, Town of Big Sandy at (406) 378-2350 or Shaud Schwarzbach, Mayor, at (406) 390-3152.
Done by Order of the Council of the Town of Big Sandy, Montana, this 6th day of September, 2018.