PUBLIC HEARINGS


NOTICE OF TOWN OF MANHATTAN’S PROPOSED
WASTEWATER RATE INCREASE AND PUBLIC HEARING

NOTICE IS HEREBY GIVEN that on April 29, 2019, the Town Council (the “Council”) of the Town of Manhattan, Montana (the “Town”), adopted its Resolution No. 19-005 of its Intention to Increase Rates and Charges for the Users of the Wastewater System.

The Town currently owns and operates a municipal wastewater system (the “System” and imposes a monthly rate charge on all connections to the System (the “Monthly Rate Charge”). The costs of the System covered by the Monthly Rate Charge are the amount necessary to pay the costs of operating and maintaining the System, to pay the principal of and interest on any outstanding or authorized debt of the System and to establish and maintain any reserves and other debt service requirements.

The current Monthly Rate Charge for the System is as follows:
Size EDU Multiplier Base Amount/EDU Base Rate per Meter Size

Up to ¾ inch 1.00 $63.38 $63.38
1 inch 1.79 $63.38 $113.46
1 ½ inch 4.00 $63.38 $253.53
2 inch 7.14 $63.38 $452.55
3 inch 16.00 $63.38 $1,014.12
4 inch 28.57 $63.38 $1,810.77

The proposed new Monthly Rate Charge for the System is proposed to be as follows:
Size EDU Multiplier Base Amount/EDU Base Rate per Meter Size

Up to ¾ inch 1.00 $66.23 $66.23
1 inch 1.79 $66.23 $118.56
1 ½ inch 4.00 $66.23 $264.92
2 inch 7.14 $66.23 $472.89
3 inch 16.00 $66.23 $1,059.68
4 inch 28.57 $66.23 $1,892.20

The reason for the proposed increase in rates is that the Town will need to borrow approximately $1,030,000 (payable over 30 years at an interest rate of 2.5% per annum) as part of the Town’s sewer main replacement Project, and the costs of operating the Town’s wastewater system. The debt service coverage requirements for such loan repayment and reserves and other outstanding debt obligations will be approximately $385,134 per year and the expenses for that wastewater system, including operation and maintenance are estimated at $607,606 per year. These increased obligations amount to a monthly base rate increase of $2.85 per month per equivalent dwelling unit.

On May 20, 2019, at 7:00 PM at the Town Hall in Manhattan, Montana, the Council will conduct a public hearing on the proposed wastewater rate increase. Comments may be given orally at the hearing or submitted in writing to the address below before 3:00 PM on the date of the hearing.

Further information about the proposed rate increases may be obtained by contacting Pam Humphrey, Town Clerk/Treasurer, P.O. Box 96, Manhattan, Montana 59741, phone: (406) 284-3235.

Done by Order of the Council of the Town of Manhattan, Montana, this 29th day of April, 2019.

Pam Humphrey, Town Clerk/Treasurer
Publish: April 30, 2019, May 7, 2019 and May 14, 2019