Montana Code Annotated
Part 3. Regional Water and Wastewater Authority Act
75-6-326. Rates, fees, and charges -- establishment and changes

75-6-326. Rates, fees, and charges -- establishment and changes. (1) (a) The governing body shall by appropriate resolution make provisions for the payment of bonds issued pursuant to this part by taxing rates, fees, and charges, for the use of all services rendered by the authority.
(b) The governing body of the authority shall review at least annually the rates, fees, and charges for services, facilities, and benefits directly afforded by the facilities, taking into account services provided and direct benefits received.
(c) The rates, fees, and charges, in addition to grants or any other revenue, must be sufficient to:
(i) pay the costs of operation, improvement, and maintenance of the authority's water supply or wastewater transportation or treatment system;
(ii) provide an adequate depreciation fund;
(iii) provide an adequate sinking fund to retire any bonds and pay interest on the bonds when due;
(iv) create reasonable reserves for the enumerated purposes; and
(v) allow for miscellaneous and emergency or unforeseen expenses.
(2) The resolution of the governing body authorizing the issuance of revenue bonds may include agreements, covenants, or restrictions considered necessary or advisable by the governing body to effect the efficient operation of the system, to safeguard the interests of the holders of the revenue bonds, and to secure the payment of the bonds and the interest on the bonds.
(3) Except as provided in subsection (9), prior to adopting a resolution to establish or change rates, fees, or charges, the governing body of the authority shall hold a public hearing.
(4) Notice of the public hearing must be published as provided in 7-1-2121 in each county or counties in which customers of the authority are located. The published notice must contain:
(a) the date, time, and place of the hearing;
(b) a brief statement of the proposed action; and
(c) the address and telephone number of a person at the authority who may be contacted for information regarding the hearing.
(5) (a) The notice must be mailed to each rural customer and to the governing bodies of district customers or municipal customers at least 25 days and not more than 40 days prior to the public hearing.
(b) The mailed notice must contain an estimate of the amount that a customer would be charged under the proposed resolution.
(6) If the establishment or change in rates, fees, or charges proposed by the authority requires an increase in the rates, fees, or charges imposed by district customers or municipal customers, district customers and municipal customers shall comply with the provisions of 7-13-2275 or 69-7-111.
(7) Any interested person, corporation, governmental body, or company may be present, be represented by counsel, and testify at the public hearing of the authority.
(8) (a) The hearing may be continued by the governing body of the authority as necessary. After the public hearing, the governing body of the authority may, by resolution, impose, establish, change, or increase rates, fees, or charges.
(b) Within 10 days after adoption of a resolution establishing or changing rates, fees, or charges of the authority, an officer of the authority shall send a copy of the resolution to each governing body of an affected district or municipal customer.
(9) The authority is not required to hold a public hearing for a cumulative rate increase of less than or equal to 5% within a 12-month period if the governing body of the authority provides notification of the increase to rural customers and to the governing bodies of district customers and municipal customers on whom the rate will be imposed at least 10 days prior to the passage or enactment of the ordinance or resolution implementing the increase.
History: En. Sec. 16, Ch. 498, L. 1999; amd. Sec. 6, Ch. 187, L. 2013.