Garbage contract continues to raise questions
Royal council holds first readings for utility rate increases
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SENTINEL-NEWS FILE PHOTO
Under the new structure, the monthly minimum rate for water is proposed to increase to $25 for the first 1,300 gallons. The rate for each 1,000 gallons used above the minimum would be $9.
Although they approved a new solid waste collection contract with Town & Country Disposal, Royal council members on Jan. 11 still questioned the meaning of some of its language.
The main sticking point was that the initial proposal received in November called for a 3 percent increase per year for the five-year agreement. Local officials interpreted that to mean the rate charged to the city would increase 3 percent each year. The final contract, however, calls for a 15 percent increase in the first year, with no increases for the succeeding four years.
The council delayed making a decision last month so Mayor Josh Toft could talk to Brad Beyenhof about their concerns. According to Toft, Beyenhof said the upfront increase is "the way they always do it."
"If that's their policy, fine," responded Council Member Sara Ricke. "But that's not how the math works out."
Under terms of the new agreement, the city will be charged $18.10 for each residential garbage customer and $2.50 per month for recycling.
• Rate increases, FY24 budget levy
The process of raising Royal's garbage, water and sewer rates began with the first readings of those ordinances. Rates reviewed this month are the same as those proposed in December.
The amount billed to residences for garbage collection is proposed to increase to $22. The minimum sanitary sewer rate would be $18.50 for the first 1,300 gallons, with the gallon rate to increase to $5.25 for each 1,000 gallons above the minimum. The monthly minimum rate for water is proposed to increase to $25 for the first 1,300 gallons. The rate for each 1,000 gallons used above the minimum would be $9.
The council will hold the second reading of those ordinances on Feb. 8.
Also scheduled at that time is the maximum levy hearing. According to the Department of Management, cities must publish notice of the proposed maximum property taxes to be levied for the upcoming fiscal year, and indicate if that amount is greater than 102 percent of the maximum levy for the current year.
City Clerk Barb Fletcher distributed printouts of the current budget and amounts expended through Dec. 31. FY24 budget numbers will be discussed in detail next month.
• Appointments, edge purchase
No changes were made in annual appointments for 2023. They include: Barb Fletcher, city clerk; Sherman Nielsen, street, sewer and maintenance superintendent; Home State Bank, official depository; Sentinel-News, official newspaper; and Montgomery, Barry, Bovee & Davis, city attorney.
In other action, the council authorized Nielsen to purchase cutting edges for the payloader and box scraper, at an estimated cost of $1,500. Nielsen reported he had ordered batteries for the John Deere tractor and will attempt to determine how many water meters remain to be replaced.
Fletcher said the approximate price for software for an accounting and utility billing package is $9,000. The software will be needed when all radio-read meters are installed.
