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CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, the undersigned, being the duly qualified and acting recording officer of City of Belgrade, Montana ( the" City"), hereby certify the attached is a true copy of a Resolution entitled: " RESOLUTION OF THE CITY OF BELGRADE, MONTANA APPROVING THE MODIFICATION OF RATES AND CHARGES FOR USERS OF THE MUNICIPAL WATER AND SEWER SYSTEMS" ( the" Resolution"), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Council of the City at a regular meeting on June 17, 2024, and that the meeting was duly held by the City Council and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and the Resolution has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following Council Members voted in favor thereof: ( oceeNt ; 5 Si mn" , NiLh; Wc. Q, i t NyUL laothnw2 voted against the same: kj abstained from voting thereon: No„ c or were absent: IJo,^,e_ WITNESS my hand officially this rt day of June, 2024. Camille Gregory, Citle JRCe ---PAGE BREAK--- RESOLUTION NO. 2024- 10 RESOLUTION OF THE CITY OF BELGRADE, MONTANA APPROVING THE MODIFICATION OF RATES AND CHARGES FOR USERS OF THE MUNICIPAL WATER AND SEWER SYSTEMS RECITALS WHEREAS, the City of Belgrade, Montana( the" City") operates a municipal water system ( the" Water System") and a municipal sewer system ( the" Sewer System"); and WHEREAS, with respect to the Water System, it is necessary for the City to collect sufficient revenues to repay indebtedness of the Water System, to pay the costs associated with the operation and maintenance of the Water System, and to establish appropriate reserves; and WHEREAS, with respect to the Sewer System, it is necessary for the City to collect sufficient revenues to repay indebtedness of the Sewer System, to pay the costs associated with the operation and maintenance of the Sewer System, and to establish appropriate reserves; and WHEREAS, under Section 69- 7- 101, Montana Code Annotated, the City has the power and authority to regulate, establish, and change, as it considers proper, rates, charges, and classifications imposed for utility services to its inhabitants and other persons served by the municipal systems. Rates, charges, and classifications must be reasonable and just; and WHEREAS, the City Council ( the" Council") has determined it is in the best interests of the City to modify the rates and charges for the Water System and the Sewer System; and WHEREAS, pursuant to Section 69- 7- 111, Montana Code Annotated, the Council shall order a public hearing prior to the passage or enactment of an ordinance or resolution imposing, establishing, changing or increasing rates, fees, or charges for services or facilities; and WHEREAS, a notice of public hearing was mailed to all users of the Water System and the Sewer System notifying them that it was the intention of the City to modify the rates and charges for users of the water and sewer systems and notice of public hearing was published and mailed as required by Section 69- 7- 111, MCA; and WHEREAS, a public hearing was held on June 17, 2024 commencing at 7: 00 p.m. in the City Council Chambers located at 91 East Central Avenue in the City, for the purpose of hearing comments from the public on the rate modifications; and WHEREAS, all persons appearing were given an opportunity to speak at the public hearing. NOW, THEREFORE, BE IT RESOLVED by the Council as follows: ---PAGE BREAK--- Section 1. Current Water Rates. 1. 01 Single Family Residential Water Base Rate and Usage Rate. The City currently charges a Single Family Residential Water Base Rate of$ 21. 90 to residential users of the Water System, which includes the use of 2, 000 gallons of water each month. The City also charges a Single Family Residential Water Usage Rate of$ 1. 65 per 1, 000 gallons of water or portion thereof used per month over 2, 000 gallons. The single family residential charge for the use and availability of the Water System is the sum of the Single Family Residential Water Base Rate plus the Single Family Residential Water Usage Rate. 1. 02 Non-Residential Water Base Rate and Usage Rate. In addition, the City currently charges a Non- Residential Water Base Rate of$29. 38 to non- residential users of the Water System, which includes the use of 2, 000 gallons of water each month. The City also charges a Non-Residential Water Usage Rate of$ 2.21 per 1, 000 gallons of water or portion thereof used per month over 2, 000 gallons. The non-residential charge for the use and availability ofthe Water System is the sum of the Non-Residential Water Base Rate plus the Non- Residential Water Usage Rate Section 2. Water Rate Modification. 2. 01 New Single Family Residential Water Rates. Effective as of the July 2024 billing, the Single Family Residential Water Rates will be as shown in the table below. Each fiscal year rate increase is effective as of July 1 of that fiscal year. Single Family Residential Water Rates FY25 FY26 FY27 FY28 FY29 Base Rate $ 21. 90 $ 22. 78 23. 69 24. 63 25. 62 Volumetric Tier 1 ( 0- 10k) $ 2.42 2. 52 2. 62 2. 72 2.83 Volumetric Tier 2 ( 10- 25k) $ 3. 38 3. 52 3. 66 3. 80 3.95 Volumetric Tier 3 ( 25k+) $ 4.84 5.03 5. 23 5. 44 5.66 Rate of Base Rate Increase 0% 4% 4% 4% 4% Rate of Volumetric Increase 100% 4% 4% 4% 4% 2. 02 New Non-Residential and Multi-Family Water Rates. Effective as of the July 2024 billing, the Non-Residential and Multi-Family Water Rates will be as shown in the table below. Each fiscal year rate increase is effective as of July 1 of that fiscal year. 2 ---PAGE BREAK--- Non- Residential and Multi- Family Water Rates Base Rate Line Size FY25 FY26 FY27 FY28 FY29 5/ 8" & 3/ 4" 38. 33 39. 86 41. 45 43. 11 44. 83 1" 48. 78 50. 73 52. 76 54. 87 57.06 1. 25" 62. 71 65. 22 67. 83 70. 54 73. 37 1. 5" 62. 71 65. 22 67. 83 70. 54 73.37 2" 101. 04 105. 08 109. 28 $ 113. 65 118.20 3" 383. 25 398. 58 414. 52 $ 431. 10 448.35 4" 487. 77 507. 28 527. 57 $ 548. 68 570. 63 Rate of Base Rate Increase 30% 4% 4% 4% 4% Rate Per 1, 000 Gallons Used Per Month ( Volumetric Rate) FY25 FY26 FY27 FY28 FY29 Volumetric Rate( per kgal) 4.42 4. 60 4.78 4. 97 5. 17 Rate of Volumetric Increase 100% 4% 4% 4% 4% 2. 03 New Construction and Irrigation Water Rates. Effective as of the July 2024 billing, Irrigation Water Rates and construction water rates will be as shown in the table below. Each fiscal year rate increase is effective as of July 1 of that fiscal year. Construction and Irrigation Water Rates Base Rate Line Size FY25 FY26 FY27 FY28 FY29 5/ 8" & 3/ 4" 38. 33 39. 86 41. 45 43. 11 44.83 1" 48. 78 50. 73 52. 76 54. 87 57. 06 1. 25" 62. 71 65. 22 67. 83 70. 54 73. 37 1. 5" 62. 71 65. 22 67.83 70. 54 73. 37 2" 101. 04 105. 08 109.28 $ 113. 65 118. 20 3" 383. 25 398. 58 414. 52 $ 431. 10 448. 35 4" 487. 77 507. 28 527. 57 $ 548. 68 570. 63 Rate of Base Rate Increase 30% 4% 4% 4% 4% Rate Per 1, 000 Gallons Used Per Month (Volumetric Rate) FY25 FY26 FY27 FY28 FY29 Volumetric Rate( per kgal) 3. 38 3. 52 3. 66 3. 80 3. 95 Rate of Volumetric Increase 100% 4% 4% 4% 4% 3 ---PAGE BREAK--- Section 3. Current Sewer Rates. 3. 01 Single Family Residential Sewer Base Rate and Usage Rate. The City currently charges a Single Family Residential Sewer Base Rate of$ 36. 60 to single family residential users of the Sewer System, which includes the use of 2, 000 gallons of water each month. The City also charges a Single Family Residential Sewer Usage Rate of$3. 62 per 1, 000 gallons of water or portion thereof used per month over 2, 000 gallons. The single family residential charge for the use and availability of the Sewer System is the sum of the Single Family Residential Sewer Base Rate plus the Single Family Residential Sewer Usage Rate. 3. 02 Non- Residential Sewer Base Rate and Usage Rate. The City currently charges a Non- Residential Sewer Base Rate of$ 51. 23 to non- residential users of the Sewer System, which includes the use of 2, 000 gallons of water each month. The City also charges a Non- Residential Sewer Usage Rate of$ 6. 08 per 1, 000 gallons of water or portion thereof used per month over 2, 000 gallons. The non- residential charge for the use and availability of the Sewer System is the sum of the Non- Residential Sewer Base Rate plus the Non- Residential Sewer Usage Rate. 3. 03 Multi- Family Sewer Base Rate Usage Rate. The City currently charges a Multi-Family Sewer Base Rate and a Multi-Family Sewer Usage Rate. The Multi-Family Sewer Base Rate is $ 36. 60 per month, which includes the use of 2, 000 gallons of water each month. The Multi-Family Sewer Usage Rate is $ 3. 62 per 1, 000 gallons of water or portion thereof used per month over 2, 000 gallons. The multi-family charge for the use and availability of the Sewer System is the sum of the Multi-Family Sewer Base Rate plus the Multi-Family Sewer Usage Rate. Section 4. Sewer Rate Modification. 4. 01 New Residential Sewer Rates. Effective as of the July 2024 billing, the Residential Sewer Rates will be as shown in the table below. Each fiscal year rate increase is effective as of July 1 of that fiscal year: Residential Sewer Rates FY25 FY26 FY27 FY28 FY29 Base Rate $ 36. 60 42. 09 46. 30 50. 93 52. 46 Rate of Base Rate Increase 0% 15% 10% 10% 3% Rate Per 1, 000 Gallons Used Per Month ( Volumetric Rate) FY25 FY26 FY27 FY28 FY29 Volumetric Rate( per kgal) $ 4. 53 5. 20 5. 72 6. 30 6.49 Rate of Volumetric Increase 25% 15% 10% 10% 3% 4 ---PAGE BREAK--- 4. 02 New Non-Residential Sewer Rates. Effective as of the July 2024 billing, the Non- Residential Sewer Rates will be as shown in the table below. Each fiscal year rate increase is effective as of July 1 of that fiscal year. Non- Residential Sewer Rates FY25 FY26 FY27 FY28 FY29 Base Rate $ 64. 04 73. 64 81. 01 89. 11 91. 78 Rate of Base Rate Increase 25% 15% 10% 10% 3% Rate Per 1, 000 Gallons Used Per Month ( Volumetric Rate) FY25 FY26 FY27 FY28 FY29 Volumetric Rate( per kgal) $ 7. 60 8. 74 9. 61 10. 58 10. 89 Rate of Volumetric Increase 25% 15% 10% 10% 3% 4. 03 New Multi-Family Sewer Rates. Effective as of the July 2024 billing, the Multi- Family Sewer Rates will be as shown in the table below. Each fiscal year rate increase is effective as of July 1 of that fiscal year. Multi- Family Sewer Rates FY25 FY26 FY27 FY28 FY29 Base Rate $ 57. 93 66. 61 73. 28 80. 60 83. 02 Rate of Base Rate Increase 58% 15% 10% 10% 3% Rate Per 1, 000 Gallons Used Per Month ( Volumetric Rate) FY25 FY26 FY27 FY28 FY29 Volumetric Rate( per kgal) $ 4. 53 5. 20 5. 72 6. 30 6. 49 Rate of Volumetric Increase 25% 15% 10% 10% 3% Section 5. Public School Districts. A public school district is a particular classification of user. As part of implementing the above rate and charge adjustments, Belgrade Elementary School District and Belgrade High School District ( together, the" Districts") will transition from residential water and sewer rates and charges to non- residential water and sewer rates and charges, with the effect of abrupt and significant rate increases. Accordingly, so that the Districts do not exceed their budget authority, the City Manager is hereby authorized for a period ending June 30, 2027, to phase- in or otherwise adjust the non-residential water and sewer rates and charges imposed on the Districts such that the Districts may operate within their budget authority. No such phase- in or adjustment shall adversely affect any other customers, and all other customers shall be bound by the rate schedules above. Section 6. Determination of Annual Budget for the Water System and the Sewer System. At least once each year the Council of the City shall determine the amount of money needed to pay the costs of the Water System and the Sewer System including but not limited to: 5 ---PAGE BREAK--- a) the payment of the reasonable expense of operation and maintenance of the Water System and the Sewer System; ( b) administration of the Water System and the Sewer System; ( c) the payment of principal and interest on any bonded or other indebtedness of the Water System and the Sewer System; and ( d) the establishment or maintenance of any required reserves, including reserves needed for expenditures for depreciation and replacement of facilities, as may be determined necessary from time to time by the Council or as covenanted in the ordinance or resolution authorizing any outstanding bonds ofthe Water System and the Sewer System. Based on the annual needs of the Water System and the Sewer System, the Council will establish charges for the use and availability of the Water System and the Sewer System. Section 7. Further Rate Increases. Subsequent adjustment to the rates and charges for the use of the Water System and the Sewer System will be made by resolutions of the Council duly adopted after a public hearing with notice thereof given as provided by law. Passed and approved this 17th day of June, 2024.1' ussell C. Nelson, Mayor Attest: a 1. E `rnitte• Gregory, Ci Cl k a p 6