HomeMy WebLinkAboutResolution No. R22-70RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF
OF LAUREL'S SOLID WASTE RATES AND SI
PUBLIC HEAR
WHEREAS, a need is anticipated for repair,
maintenance of existing and proposed solid waste facia
providing of collection and disposal of solid waste for
Montana and its environs (hereinafter "the City");
WHEREAS, it is essential to the public health,
the City of Laurel and its environs to provide an adequate
and to provide adequate funding to meet the cost of coi
the same;
VLli
STT TO INCREASE THE CITY
G A DATE AND TIME FOR A
wement, and continued operation and
ties, equipment, and services for the
;he inhabitants of the City of Laurel,
•e, and safety of the inhabitants of
safe solid waste collection service
cting, maintaining, and operating
WHEREAS, the current solid waste collection d disposal rates and charges in effect
at the present time within the City of Laurel are not adequate to provide revenues with which
to defray the increased costs of operation, maintenance and capital of the City's solid waste
facilities, equipment, and services;
WHEREAS, the provision of the solid waste
essential to the preservation of the public's health and N
WHEREAS, that the new rates must, before
Council after advertising and conducting a public he
Mont. Code Ann. § 69-7-111;
ities, equipment, and services is
g effect, be approved by the City
pursuant to the City's Charter and
WHEREAS, current budgetary requirements ith respect to the operation of said
facilities, equipment, and services, in addition to ongoing and future projects, require the
proposed rate increase to enable the City to proceed as expeditiously as possible to accomplish
the objectives herein above recited; and
WHEREAS, pursuant to its Charter and Montan law, the City Council has determined
that a public hearing must be advertised and held to gath r public testimony and input regarding
the proposed increases in solid waste rates and charges.
NOW, THEREFORE, BE IT RESOLVED BY
OF LAUREL, MONTANA:
That the City Council considers it both ad
municipal solid waste rates and charges for
rates and charges as specifically contained o
R22-70 Intent to Increase Solid Waste Collection and Disposal
CITY COUNCIL OF THE CITY
sable and necessary to increase the
ll users and proposes to increase the
the rate and charge schedule marked
"Exhibit All that is attached hereto and
reference.
2. That a public hearing shall be held on the 1
in the City Council Chambers, at City Ha.
gathering and receiving testimony, input,
affected users, citizens, persons, association
incorporated into this Resolution by
'day of December 2022, at 6:30 p.m.
Laurel, Montana, for the purpose of
id comments from all interested or
corporations and/or companies.
3. Notice of the Hearing shall be published one a week for three consecutive weeks
in the Yellowstone County News, a newspaper that conforms to the requirements
of Mont. Code Ann. § 7-1-4127, and the first such publication shall not be more
than twenty-eight (28) days prior to the hearing and the last publication shall be not
less than three (3) days prior to the hearing, in a form substantially similar to the
Notice of Public Hearing marked and attacheo hereto as "Exhibit B."
4. Additionally, the Notice of the Hearing shal
not more than thirty (30) days prior to the he
the City's utility. The notice shall contain an
average monthly bill will increase.
Introduced at a regular meeting of the City
by Council Member Herr.
PASSED and APPROVED by the City Council
8th day of November 2022.
APPROVED by the Mayor on the 8th day of
ATTEST:
jtC&A-2
ii*ycl
er, Clerk -Treasurer
APPROVED AS TO FORM:
Michele L. Braukmann, Civil City Attorney
R22-70 Intent to Increase Solid Waste Collection and Disposal
be mailed at least seven (7) days and
xing to all persons who are served by
Aimate of the amount the customer's
on the 8th day of November 2022
the City of Laurel, Montana on the
2022.
OF LA
Waggoner,
CITY HALL
115 W. IST ST.
PUB. WORKS: 628-4796
WATER OFC.: 628-7431
COURT: 628-1964
FAX 628-2241
October 27, 2022
Re:
City Of
P.O. Box 10
Laurel, Montana
1
Office of the Mayor
Proposed Solid Waste Rate Increases to be Considered by the City Council
Dear City of Laurel Resident:
The City of Laurel operates a Solid Waste Division th
commercial properties inside the City limits. The City tr
Billings' landfill for disposal and must pay a set fee for
Increases in disposal fees, along with increased cos
replacement, necessitate that the City Council considers
with solid waste collection within the City.
The Solid Waste Division operates based upon the rates a
in the monthly water bills and are not supported by tax c
as low as possible, while maintaining its ability to serve
the City. Unfortunately, the current rates are inadequate
the need to replace worn-out refuse trucks. A recent refu
with a loan, as the current solid waste reserves would be
truck outright. The refuse truck on order has a price to
continue making daily trips to Billings to dispose of the 1
collects trash from all residential and
,ports the trash collected to the City of
;h ton for disposal at Billings' landfill.
of wages, fuel, vehicle repair, and
creasing rates for all properties served
l charges it collects, which are included
Mars. The City strives to keep the rates
residents and business owners within
keep up with the City's expenses and
truck on order will have to be paid for
-pleted if the City tried to purchase the
of over $380,000.00 and is needed to
sh collected within the City.
Please be advised that the decision to consider a rate incre se is not made lightly. As Mayor of the
City of Laurel, I believe having the funds to operate the Solid Waste Department is in the best
interests of the citizens of Laurel.
The attached spreadsheet will give you a detailed explanation of the expenses and the revenues of
the Solid Waste Department, along with projected costs t at the City could be facing if the trends
from the last few years are an indication of what we will pect.
For your information, the current residential rate perm nth and the proposed increases are as
follows:
November 2022 $14.00 per month Current charges
December 2022 $17.00 per month $3.00 per m nth increase
July
2023 $20.00 per month
$3.00 per
July
2024 $23.00 per month
$3.00 per
July
2025 $25.50 per month
$2.50 per
July
2026 $27.50 per month
$2.00 per
The Laurel Municipal Code requires that commercial
residential rates, and those rates are determined by the pri,
Those rates are determined by the level of service comm
rates are as follows:
November
2022
$0.0327 per gallon per month
December
2022
$0.0392 per gallon per month
July
2023
$0.0461 per gallon per month
July
2024
$0.0531 per gallon per month
July
2025
$0.0588 per gallon per month
July
2026
$0.0634 per gallon per month
The rate increases are necessary to provide for the incl
Billings landfill, pay for increased fuels costs (last year
of current operations, replacement of the refuse trucks,
enough funds to build -back depleted reserve funds.
increase
increase
increase
increase
ates will not be less than the annual
per gallon that the residents pay yearly.
-ial accounts require. The commercial
current charges
$0.0065 per gallon increase
$0.0069 per gallon increase
$0.0070 per gallon increase
$0.0057 per gallon increase
$0.0046 per gallon increase
costs to dispose of our trash at the
sed by 46%), ongoing maintenance
of City employees, and to provide
The revenue raised over the next five years is anticipated tc be $722,000.00, of which $180,000.00
will go for a refuse truck loan payment, $400,000.00 to pur hase another refuse truck, $120,000.00
for the increased cost to dispose of our trash at the Billing ' landfill, and some additional to funds
to pay for wages and reserve fund building.
The City Council will have a public hearing on December 113, 2022, where the proposed rates will
be presented and discussed, and the public will have a ch ce to comment on the rate increases.
If you have any questions, please contact the City Clerk
406-628-7431 or by email at cit,, c�Alaurel.mt.gov.
Sincerely,
David Waggoner, Mayor
or the Public Works Director at
Residential Rate Increase over 4 Years 7 Months
Per
Month
Fiscal Year Cost Increase
Total Residential Clients = 2918
Increased Monthly Yearly Revenue
Total % Increase Charge Charge Increase/Yr Raised
21-22
$ 14.00
Current Cost
Current Cost
$ 255.06
$ 3,060.72
$
168.00
22-23
0.0392
0.0065
22.23
$ 14.00
$
3.00
$
17.00
21.4%
$
17.00
$
204.00
$
36.00
$ 60,927.84
23-24
$ 17.00
$
3.00
$
20.00
17.6%
$
20.00
$
240.00
$
36.00
$ 105,048.00
24-25
$ 20.00
$
3.00
$
23.00
15.0%
$
23.00
$
276.00
$
36.00
$ 105,048.00
25-26
$ 23.00
$
2.50
$
25.50
10.9%
$
25.50
$
306.00
$
30.00
$ 87,540.00
26-27
$ 25.50
$
2.00
$
27.50
7.8%
$
27.50
$
330.00
$
24.00
$ 70,032.00
$
330.00
$
24.00
$
1,632.00
$
162.00
$ 472,716.00
Commercial Rate Increase over 4 years 7 Months
Per
month
Fiscal Year Cost Increase
Total Users 68, same as residential customers
Increased Monthly Yearly Revenue
Total % Increase Charee Charge Increase/Yr Raised
21-22
$ 14.00
Current Cost
Current Cost
$ 255.06
$ 3,060.72
$
168.00
22-23
0.0392
0.0065
$
22-23
$ 14.00
$
3.00
$
17.00
21.4%
$
17.00
$
204.00
$
36.00
$
1,419.84
23-24
$ 17.00
$
3.00
$
20.00
17.6%
$
20.00
$
240.00
$
36.00
$
2,448.00
24-25
$ 20.00
$
3.00
$
23.00
15.0%
$
23.00
$
276.00
$
36.00
$
2,448.00
25-26
$ 23.00
$
2.50
$
25.50
10.9%
$
25.50
$
306.00
$
30.00
$
2,040.00
26-27
$ 25.50
$
2.00
$
27.50
7.8%
$
27.50
$
330.00
$
24.00
$
1,632.00
$
9,987.84
Commercial Rate Increase over 4 years 7 Months
Per
Month
cost
Fiscal Year Per Gallon Increase/oereal
Total Users - 73, 300 gallons picked up 6 days per
Monthly Yearly Revenue
Increase Charee Charee Increase/Yr Raised
21-22
0.0327
Current Cost
$ 255.06
$ 3,060.72
22-23
0.0392
0.0065
$
0.0457
$ 305.76
$ 3,669.12
$
608.40
$
25,759.66
23-24
0.0461
0.0069
$
0.0530
$ 359.58
$ 4,314.96
$
645.84
$
47,146.32
24-25
0.0531
0.0070
$
0.0601
$ 414.18
$ 4,970.16
$
655.20
$
47,829.60
25-26
0.0588
0.0057
$
0.0645
$ 458.64
$ 5,503.68
$
533.52
$
38,946.96
26-27
0.0634
0.0046
$
0.0680
$ 494.52
$ 5,934.24
$
430.56
$
31,430.88
$
191,113.42
Residential Customers
rotal Increase over the next 4 years 7 months.
:ommercial 1- 90 Gallon can picked up once per week.
rotal Increase over the next 4 years 7 months.
'ommericlal 2 - 300 Gallon Can picked up 6 times per week.
focal Increase over the next 4 years 7 months.
Commercial Rate Increase over 4 years 7 Months
Per
Month
Cost
Fiscal Year Per Gallon Increase
Total Users -21, 200 gallons picked up 6 days per week.
Monthly Yearly Revenue
Increase Charee Charee Increase/Yr Raised
21-22
0.0327
Current Cost
$ 170.04
$ 2,040.48
510.90
22-23
0.0392
0.0065
$
0.0457
$ 203.84
$ 2,446.08
$
405.60
$
4,940.21
23-24
0.0461
0.0069
$
0.0530
$ 739.72
$ 2,876.64
$
430.S6
$
9,041.76
24-25
0.0531
0.0070
$
0.0601
$ 276.12
$ 3,313.44
$
436.80
$
9,172.80
2S-26
0.0588
0.0057
$
0.0645
$ 305.76
$ 3,669.12
$
355.68
$
7,469.28
26-27
0.0634
0.0046
$
0.0680
$ 329.68
$ 3,956.16
$
287.04
$
6,027.84
$
990.56
$
71.87
$
1,437.41
$
36,651.89
Commercial Rate Increase over 4 years 7 Months
Per
Month
Cost
Fiscal Year Per Gallon Increase
Total Users -51, 100 gallons picked up 6 days per week.
Monthly Yearly Revenue
Increase Charge Charge Increase/Yr Raised
21-22
0.0327
Current Cost
$ 85.02
$ 1,020.24
510.90
22-23
0.0392
0.0065
$
0.0457
$ 101.92
$ 1,223.04
$
202.80
$
5,998.82
23-24
0.0461
0.0069
$
0.0530
$ 119.86
$ 1,438.32
$
215.28
$
10,979.28
24-25
0.0531
0.0070
$
0.0601
$ 138.06
$ 1,656.72
$
218.40
$
11,138.40
25-26
0.0588
0.0057
$
0.0645
$ 152.88
$ 1,834.56
$
177.84
$
9,069.84
26-27
0.0634
0.0046
$
0.0680
$ 164.84
$ 1,978.08
$
143.52
$
9,759.36
$
990.56
$
71.87
$
1,437.41
$
46,945.70
Commercial Rate Increase over 4 years 7 Months
Per
Month
Cost
Fiscal Year Per Gallon Increase
Total Users -20, 300 gallons picked up once a week.
Monthly Yearly Revenue
Increase Charee Charee Increase/Yr Raised
21-22
0.0327
Current Cost
$ 42.58
$
510.90
22-23
0.0392
0.0065
$
0.0457
$ 51.04
$
612.46
$
101.56
$
1,178.05
23-24
0.0461
0.0069
$
0.0530
$ 60.02
$
720.27
$
107.81
$
2,156.11
24-25
0.0531
0.0070
$
0.0601
$ 69.14
$
829.63
$
109.37
$
2,187.36
25-26
0.0588
0.0057
$
0.0645
$ 76.56
$
918.69
$
89.06
$
1,781.14
26-27
0.0634
0.0046
$
0.0680
$ 82.55
$
990.56
$
71.87
$
1,437.41
$
8,740.07
Commericial 3 - 200 Gallon Can picked up 6 times per week.
Total Increase over the next 4 years 7 months. .
Commericial 4 -100 Gallon Can picked up 6 times per week
Total Increase over the next 4 years 7 months.
Commericial 5 -300 Gallon Can picked up once a week.
Total Increase over the next 4 years 7 months.
Revenue Increased per year from all users
Year 1 Increase
$
100,224.42
Year 2Increase
$
176,819.47
Year 3 Increase
$
177,824.16
Year 4Increase
$
146,847.22
Year 5 Increase
$
120,319.49
$ 722,034.75 Total Increase over the next 4 years 7 months.
Fiscal Billings Dumping Tons
Year Fees Dumped
Cost per Wages per
Ton Year
Fuel per
Year
Fiscal
Year
Total Expenses
Total Revenue
18-19
$ 869,001.00
$ 898,387.00
19-20
18-19
$
154,028.30
6791
$
22.68
$
321,368.00
$
53,035.00
19-20
$
179,996.15
6893
$
26.11
$
263,607.00
$
48,967.00
20-21
$
204,945.35
6826
$
30.02
$
284,405.00
$
49,043.00
21-22
$
233,857.00
7086
$
33.00
$
328,824.00
$
75,514.00
22-23
$
249,781.50
7355
$
35.25
$
335,400.48
$
75,514.00
62%
8%
55%
4%
42%
PROJECTED TOTALS IF BILLINGS INCREASE DUMPING FEES BY $2.00 PER TON PER YEAR AND TONAGE CONTIP
23-24
$
286,837.50
7649
$
37.50
$
342,108.49
24-25
$
310,245.00
7955
$
39.00
$
348,950.66
25-26
$
339,193.00
8273
$
41.00
$
355,929.67
26-27
$
369,972.00
8604
$
43.00
$
363,048.27
27-28
1 $
402,660.00
8948
$
45.00
$
370,309.23
61%
32%
20%
1
8% 1
1
Fiscal
Year
Total Expenses
Total Revenue
18-19
$ 869,001.00
$ 898,387.00
19-20
$ 748,254.00
$ 908,145.00
20-21
$ 955,491.00
$ 935,074.00
21-22
$ 1,091,545.00
$ 933,748.00
22-23
$ 1,235,587.00
$ 943,670.00
26%
-5
Actual
Actual
Actual
Actual
Yet to be determined, average ba
IUES TO INCREASE.
Projected Increase
Actual
Actual
Actual
Actual
Estimate without a rate increase and no garbage truck payment
sed off last years totals estimated at 4%