1999 State of Wyoming 99LSO-0261
SENATE FILE NO. SF0050
Public water systems-rates.
Sponsored by: Joint Agriculture, Public Lands and Water
Resources Interim Committee
A BILL
for
1 AN ACT relating to public water supply systems; limiting
2 rates charged for delivery of water by water supply systems
3 as specified; and providing for an effective date.
4
5 Be It Enacted by the Legislature of the State of Wyoming:
6
7 Section 1. W.S. 15-7-602(a)(i), (ii) and (b) and
8 16-1-108(c) are amended to read:
9
10 15-7-602. Extension of system; outside corporate
11 limits; rates; existing contracts; controversies; appeal.
12
13 (a) All cities and towns owning their municipal water
14 system or plant may enter into agreements with customers
15 whose lands lie outside the corporate limits to supply water
16 for their use and needs. The water system may be extended
17 and maintained beyond the corporate limits only if it is
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1 economically feasible in the opinion of the governing body.
2 The governing body may finance the extension and maintenance
3 of the water system through revenue bonds or other means
4 granted by law for financing of its water system and
5 improvements. The rate established for use of water
6 pursuant to this section is as follows:
7
8 (i) As to cities and towns extending water
9 service outside their corporate limits on April 1, 1998, the
10 ratio of the rate charged to the customers, to the
11 established rate within the corporate limits of the city or
12 town on the effective date shall remain constant
13 Notwithstanding any other provision of this section, a city
14 or town whose water supply system is funded in whole or in
15 part by state grants or loans which at any time after April
16 1, 1999 or later, enters into a new contract or extends an
17 existing contract to supply water to customers outside its
18 corporate limits shall in establishing rates be limited to
19 the actual costs of providing and delivering water as
20 defined by paragraph (ii) of this subsection, except as
21 otherwise provided by W.S. 15-7-407;
22
23 (ii) As to cities and towns which do not extend
24 water service For new customers outside their corporate
25 limits on April 1, 1998, and beginning December 1, 1998
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1 April 1, 1999, where the city or town is a recipient of
2 state grants or loans, and except as otherwise provided in
3 W.S. 15-7-407, the established waterrate shall be limited
4 to not exceed the actual costs of delivery as measured
5 providing and delivering waterto the point of connection to
6 the city's or town's water distribution system. including
7 actual administrative costs for billing customers. Prior to
8 December 1, 1998, or where the city or town is not a
9 recipient of state grants or loans and except as otherwise
10 provided in W.S. 15-7-407, the established rate shall be
11 applied uniformly and shall not exceed two (2) times the
12 established rate within the corporate limits. The governing
13 body of the city or town may establish one (1) or more
14 unincorporated service areas in each of which an average
15 water rate may be used for all customers. A one time
16 connection fee or system investment fee reasonably
17 calculated to permit recovery of a proportionate share of
18 the system infrastructure cost necessary to treat and convey
19 the water may also be charged. Charges for special services
20 such as customer's line maintenance shall be in addition to
21 the water rate.As used in this paragraph, "actual costs of
22 providing and delivering water" shall include a
23 proportionate share of the following costs related to the
24 water system:
25
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1 (A) Fees, i nterest charges and principal
2 payments on all bonds issued and other indebtedness incurred
3 to construct,purchase or improve the utility;
4
5 (B) Salaries and wages of employees;
6
7 (C) The cost of materials, and supplies,
8 utilities and outside services;
9
10 (D) The cost of miscellaneous expenses; and
11 Other costs directly related to the delivery system;
12
13 (E) The cost for providing and maintaining a
14 depreciation fund,. a fund for emergencies and a fund for
15 acquisition and development of new water rights and water
16 sources;
17
18 (F) Administrative and overhead expenses;
19 and
20
21 (G) The cost of acquiring, transporting,
22 processing and treating water.
23
24 (b) Any contracts between a municipality and a
25 consumer outside the corporate limits of the municipality,
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1 which were in existence on April 1, 1998, shall remain in
2 full force and effect in accordance with the existing terms
3 thereof, except that the contracts shall bear their
4 proportionate share of any additional capital improvements
5 to the water system of the city or town. Subsection (a) of
6 this section shall not apply if the ratio of the rate
7 charged to customers outside the corporate limits of the
8 city or town to the established rate within the corporate
9 limits are less than one and one-quarter (1.25) to one (1).
10
11 16-1-108. Obligations and responsibilities of
12 participating agencies.
13
14 (c) After April 1, 1998, any legal entity created
15 pursuant to this act or any of its participating agencies,
16 which owns, constructs, operates or maintains a municipal or
17 rural domestic water supply system funded in whole or in
18 part by state grants or loans, shall not assess public
19 entities or individual water users in the cooperating
20 agencies' service area water ratecharges which exceed the
21 actual cost costs of providing anddelivering water to the
22 point of connection to the public entities' or individual
23 water users' water system. except for a The governing body
24 of the entity may establish one (1) or more service areas in
25 each of which an average water rate may be used for all
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1 customers. Aone time connection fee or system investment
2 fee which fee shall be reasonably calculated to permit
3 recovery of a proportionate share of the system
4 infrastructure cost necessary to treat and convey the water.
5 The charges assessed customers may include actual
6 administrative costs associated with billing customersmay
7 also be charged. Charges for special services such as
8 customer's line maintenance shall be in addition to the
9 water rate.As used in this subsection, "actual costs of
10 providing and delivering water" shall include a
11 proportionate share of the following costs related to the
12 water system:
13
14 (i) Fees, i nterest charges and principal payments
15 on all bonds issued and other indebtedness incurredto
16 construct,purchase or improve the utility;
17
18 (ii) Salaries and wages of employees;
19
20 (iii) The cost of materials, and supplies,
21 utilities and outside services;
22
23 (iv) The cost of miscellaneous expenses; and
24 Other costs directly related to the delivery system;
25
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1 (v) The cost for providing and maintaining a
2 depreciation fund,. a fund for emergencies and a fund for
3 acquisition and development of new water rights and water
4 sources; and
5
6 (vi) Administrative and overhead expenses; and
7
8 (vii) The cost of acquiring, transporting,
9 processing and treating water.
10
11 Section 2. This act is effective July 1, 1999.
12
13 (END)
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