SENATE FILE NO. SF0050 [SUBSTITUTE NO. 1]
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; permitting the provision of water below cost
4 as specified; and providing for an effective date.
5
6 Be It Enacted by the Legislature of the State of Wyoming:
7
8 Section 1. W.S. 15-7-602(a)(intro), (i), (ii) and (b)
9 and 16-1-108(c) and by creating a new subsection (d) are
10 amended to read:
11
12 15-7-602. Extension of system; outside corporate
13 limits; rates; existing contracts; controversies; appeal.
14
15 (a) All cities and towns owning their municipal water
16 system or plant may enter into agreements with customers
17 whose lands lie outside the corporate limits to supply water
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1 for their use and needs. The water system may be extended
2 and maintained beyond the corporate limits only if it is
3 economically feasible in the opinion of the governing body.
4 The governing body may finance the extension and maintenance
5 of the water system through revenue bonds or other means
6 granted by law for financing of its water system and
7 improvements. A one-time connection fee reasonably
8 calculated to permit recovery of a proportionate share of
9 the municipality's infrastructure cost necessary to treat
10 and convey the water may be charged. A one-time fee may
11 also be charged to recover reasonable expenses incurred by
12 the public entity in determining the actual costs of
13 treating and delivering water to the point of connection.
14 Any charges for special services such as customer's line
15 maintenance shall be in addition to the water rate.The
16 rate established for use of water pursuant to this section
17 is as follows:
18
19 (i) As to cities and towns extending water
20 service outside their corporate limits on April 1, 1998, the
21 ratio of the rate charged to the customers, to the
22 established rate within the corporate limits of the city or
23 town on the effective date shall remain constant
24 Notwithstanding any other provision of this section, a city
25 or town whose water supply system is funded in whole or in
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1 part by state grants or loans which at any time after April
2 1, 1999 or later, enters into a new contract or extends an
3 existing contract to supply water to customers outside its
4 corporate limits shall in establishing rates be limited to
5 the actual costs of providing and delivering water as
6 defined by paragraph (ii) of this subsection, except as
7 otherwise provided by W.S. 15-7-407;
8
9 (ii) As to cities and towns which do not extend
10 water service For new customers outside their corporate
11 limits on April 1, 1998, and beginning December 1, 1998
12 April 1, 1999, where the city or town is a recipient of
13 state grants or loans, and except as otherwise provided in
14 W.S. 15-7-407, the established waterrate shall be limited
15 to not exceed the actual costs of delivery as measured
16 providing and delivering waterto the point of connection to
17 the city's or town's water distribution system. including
18 actual administrative costs for billing customers.Prior to
19 December 1, 1998, or where the city or town is not a
20 recipient of state grants or loans and except as otherwise
21 provided in W.S. 15-7-407, the established rate shall be
22 applied uniformly and shall not exceed two (2) times the
23 established rate within the corporate limits. The governing
24 body of the city or town may establish one (1) or more
25 unincorporated service areas in each of which an average
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1 water rate may be used for all customers.As used in this
2 paragraph, "actual costs of providing and delivering water"
3 shall include a proportionate share of the following costs
4 related to the water system:
5
6 (A) Fees, i nterest charges and principal
7 payments on all bonds issued and other indebtedness incurred
8 to construct,purchase or improve the utility;
9
10 (B) Salaries and wages of employees;
11
12 (C) The cost of materials, andsupplies,
13 utilities and outside services;
14
15 (D) The cost of miscellaneous expenses; and
16 Other costs directly related to the delivery system;
17
18 (E) The cost for providing and maintaining a
19 depreciation fund,. a fund for emergencies and a fund for
20 acquisition and development of new water rights and water
21 sources;
22
23 (F) Administrative and overhead expenses;
24 and
25
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1 (G) The cost of acquiring, transporting,
2 processing and treating water.
3
4 (b) Any contracts between a municipality and a
5 consumer outside the corporate limits of the municipality,
6 which were in existence on April 1, 1998, shall remain in
7 full force and effect in accordance with the existing terms
8 thereof, except that the contracts shall bear their
9 proportionate share of any additional capital improvements
10 to the water system of the city or town. If requested by
11 the party seeking water service from the city or town and
12 approval of the city or town, subsection (a) of this section
13 shall not apply if the ratio of the rate charged to
14 customers outside the corporate limits of the city or town
15 to the established rate within the corporate limits are less
16 than one and one-quarter (1.25) to one (1).
17
18 16-1-108. Obligations and responsibilities of
19 participating agencies.
20
21 (c) After April 1, 1998, any legal entity created
22 pursuant to this act or any of its participating agencies,
23 which owns, constructs, operates or maintains a municipal or
24 rural domestic water supply system funded in whole or in
25 part by state grants or loans, shall not assess public
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1 entities or individual water users in the cooperating
2 agencies' service area water ratecharges which exceed the
3 actual cost costs of providing anddelivering water to the
4 point of connection to the public entities' or individual
5 water users' water system. except for a The governing body
6 of the entity may establish one (1) or more service areas in
7 each of which an average water rate may be used for all
8 customers. Aone time connection fee or system investment
9 fee which fee shall be reasonably calculated to permit
10 recovery of a proportionate share of the system
11 infrastructure cost necessary to treat and convey the water.
12 The charges assessed customers may include actual
13 administrative costs associated with billing customersmay
14 also be charged. A one-time fee may also be charged to
15 recover reasonable expenses incurred by the public entity in
16 determining the actual costs of treating and delivering
17 water to the point of connection. Charges for special
18 services such as customer's line maintenance shall be in
19 addition to the water rate.As used in this subsection,
20 "actual costs of providing and delivering water" shall
21 include a proportionate share of the following costs related
22 to the water system:
23
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1 (i) Fees, i nterest charges and principal payments
2 on all bonds issued and other indebtedness incurredto
3 construct,purchase or improve the utility;
4
5 (ii) Salaries and wages of employees;
6
7 (iii) The cost of materials, andsupplies,
8 utilities and outside services;
9
10 (iv) The cost of miscellaneous expenses; and
11 Other costs directly related to the delivery system;
12
13 (v) 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; and
17
18 (vi) Administrative and overhead expenses; and
19
20 (vii) The cost of acquiring, transporting,
21 processing and treating water.
22
23 (d) If requested by the party seeking water service
24 who resides outside the public entity's service area and
25 approval of the public entity, subsection (c) of this
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1 section shall not apply if the ratio of the established rate
2 charged to customers outside the area to the rate within the
3 public entities service area is less than one and one-
4 quarter (1.25) to one (1).
5
6 Section 2. Nothing in this act shall prohibit a
7 municipality, joint powers board or other entity from
8 providing water below cost.
9
10 Section 3. This act is effective July 1, 1999.
11
12 (END)
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