HomeMy WebLinkAboutResolution No. R22-77RESOLUTION NO. R22-77
A RESOLUTION OF THE CITY COUNCIL TO APPROVE THE PROPOSED
INCREASE IN THE RATES AND CHARGES FOR THE USERS OF THE
MUNICIPAL SOLID WASTE FACILITIES AND EQUIPMENT TO BE EFFECTIVE
JANUARY 1, 2023.
WHEREAS, a need is anticipated for repair, improvement, and continued operation and
maintenance of existing and proposed solid waste facilities, equipment, and services for the
providing of collection and disposal of solid waste for the inhabitants of the City of Laurel,
Montana and its environs (hereinafter "the City");
WHEREAS, it is essential to the public health, welfare, and safety of the inhabitants of
the City of Laurel and its environs to provide an adequate and safe solid waste collection service
and to provide adequate funding to meet the cost of constructing, maintaining, and operating
the same;
WHEREAS, the current solid waste collection and 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 facilities, equipment, and services is
essential to the preservation of the public's health and welfare;
WHEREAS, that the new rates must, before taking effect, have been approved by the
City Council after advertising and conducting a public hearing pursuant to the City's Charter
and Mont. Code Ann. § 69-7-111;
WHEREAS, current budgetary requirements with 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;
WHEREAS, a notice of public hearing was mailed to all users of the City's solid waste
system notifying them that, pursuant to Resolution No. R22-70, adopted November 8, 2022, it
was the intent of the City to increase the rates and charges for solid waste services and Notice
of the Public Hearing was published as required by Mont. Code Ann. § 69-7-111;
WHEREAS, a public hearing was held on the 13`h day of December 2022, at 6:30 p.m.
in the City Council Chambers, at City Hall, Laurel, Montana, for the purpose of gathering
public comments and evidence regarding the proposed rate and charge increase;
R22-77 Adopt Solid Waste Rate Schedule
WHEREAS, every individual who attended the public hearing was given the
opportunity to speak, present argument and/or to submit written comment into the hearing
record; and
WHEREAS, based upon the record created, the City Council is prepared to issue its
decision pursuant to Mont. Code Ann. § 69-7-112.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF LAUREL, MONTANA:
That the City Council considers it both advisable and necessary to increase the
municipal solid waste rates and charges for all users in accordance with the rates
and charges as specifically contained on the rate and charge schedule marked
"Exhibit A" that is attached hereto and hereby incorporated into this Resolution by
reference.
2. That the proposed increase in the rates and charges for the users of the Municipal
Solid Waste System is hereby approved and attached hereto and fully incorporated
herein as "Exhibit A," and
3. That this Resolution shall be immediately filed with the City Clerk/Treasurer and
shall become final and effective not less than ten (10) days after such filing on or
before January 1, 2023.
Introduced at a regular meeting of the City Council on the 13th day of December 2022
by Council Member Klose.
PASSED and APPROVED by the City Council of the City of Laurel, Montana on the
13th day of December 2022.
APPROVED by the Mayor on the 13th day of December 2022.
R22-77 Adopt Solid Waste Rate Schedule
CITY OF LAUREL
A - I "',
Dave Waggoner, Nayor
ATTEST:
e4 - - - k , 4 'n ;?
Str , lerk-Treasurer
APPROVED AS TO FORM:
k t G Li
Michele L. Braukmann, Civil City Attorney
R22-77 Adopt Solid Waste Rate Schedule
CITY HALL City
115 W. IST ST. it Of Laurel
PUB. WORKS: 628-4796
WATER OFC.: 628-7431
COURT: 628-1964 P.O. Box 10
FAX 628-2241 Laurel, Montana 59044
October 27, 2022
Office of the Mayor
Re: 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 that collects trash from all residential and
commercial properties inside the City limits. The City transports the trash collected to the City of
Billings' landfill for disposal and must pay a set fee for each ton for disposal at Billings' landfill.
Increases in disposal fees, along with increased costs of wages, fuel, vehicle repair, and
replacement, necessitate that the City Council considers increasing rates for all properties served
with solid waste collection within the City.
The Solid Waste Division operates based upon the rates and charges it collects, which are included
in the monthly water bills and are not supported by tax dollars. The City strives to keep the rates
as low as possible, while maintaining its ability to serve the residents and business owners within
the City. Unfortunately, the current rates are inadequate to keep up with the City's expenses and
the need to replace worn-out refuse trucks. A recent refuse truck on order will have to be paid for
with a loan, as the current solid waste reserves would be depleted if the City tried to purchase the
truck outright. The refuse truck on order has a price tag of over $380,000.00 and is needed to
continue making daily trips to Billings to dispose of the trash collected within the City.
Please be advised that the decision to consider a rate increase 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 that the City could be facing if the trends
from the last few years are an indication of what we will expect.
For your information, the current residential rate per month and the proposed increases are as
follows:
November 2022 $14.00 per month Current charges
December 2022 $17.00 per month $3.00 per month increase
July
2023 $20.00 per month
$3.00 per month increase
July
2024 $23.00 per month
$3.00 per month increase
July
2025 $25.50 per month
$2.50 per month increase
July
2026 $27.50 per month
$2.00 per month increase
The Laurel Municipal Code requires that commercial rates will not be less than the annual
residential rates, and those rates are determined by the price per gallon that the residents pay yearly.
Those rates are determined by the level of service commercial accounts require. The commercial
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
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
The rate increases are necessary to provide for the increased costs to dispose of our trash at the
Billings landfill, pay for increased fuels costs (last year increased by 46%), ongoing maintenance
of current operations, replacement of the refuse trucks, wages of City employees, and to provide
enough funds to build -back depleted reserve funds.
The revenue raised over the next five years is anticipated to be $722,000.00, of which $180,000.00
will go for a refuse truck loan payment, $400,000.00 to purchase another refuse truck, $120,000.00
for the increased cost to dispose of our trash at the Billings' landfill, and some additional to funds
to pay for wages and reserve fund building.
The City Council will have a public hearing on December 13, 2022, where the proposed rates will
be presented and discussed, and the public will have a chance to comment on the rate increases.
If you have any questions, please contact the City Clerk Treasurer or the Public Works Director at
406-628-7431 or by email at cit,, c�(cDlaurel.mt.gov.
Sincerely,
David Waggoner, Mayor
Residential Rate Increase over 4 Years 7 Months
Per
Month
Fiscal Year Cost Increase
Total Residential Clients = 2918
Increased Monthly Yearly Revenue
Total % Increase Charee Charge Increase/Yr Raised
21-22
$ 14.00
Current Cost
Current Cost
$ 255.06
1 $ 3,060.72
I
1 $
168.00
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
27.50
$
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 Charee Increase/Yr Raised
21-22
$ 14.00
Current Cost
Current Cost
$ 255.06
1 $ 3,060.72
I
I $
168.00
0.0065
$
0.0457
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
5 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 Der Gallnn Inc -M -al
Total Users - 73, 300 gallons picked up 6 days per week.
Monthly Yearly Revenue
Iner-P rharoe Ch- roe IncreasetYr Raiad
21-22
0.0327
Current Cost
$ 255.06
1 $ 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
5 4,970.16
$ 655.20
$ 47,829.60
25-26
0.0588
0.0057
$
0.0645
$ 458.64
$ 5,503.68
5 533.52
$ 38,946.96
26-27
0.0634
0.0046
$
0.0680
$ 494.52
$ 5,934.24
$ 430.56
$ 31,430.88
$ 191,113.42
tesidential Customers
'otal Increase over the next 4 years 7 months.
Commercial 1- 90 Gallon can picked up once per week.
notal Increase over the next 4 years 7 months.
Commericial 2 - 300 Gallon Can picked up 6 times per week.
rota) 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 Charge Charge 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
$ 239.72
$ 2,876.64
$ 430.56
$
9,041.76
24-25
0.0531
0.0070
$
0.0601
$ 276.12
$ 3,313.44
$ 436.80
$
9,172.80
25-26
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
$ 164.84
$ 1,978.08
$
143.52
$
9,759.36
0.0634
0.0046
$
0.0680
$
82.55
$
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
0.0634
0.0046
$
0.0680
$
82.55
$
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 Charge Charge 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
5
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
:ommericial 3 - 200 Gallon Can picked up 6 times per week.
Total Increase over the next 4 years 7 months.
:ommericial 4 -100 Gallon Can picked up 6 times per week.
Total Increase over the next 4 years 7 months.
:ommericial 5 -300 Gallon Can picked up once a week.
notal Increase over the next 4 years 7 months.
Revenue Increased
per year from all users
Year 1 Increase
$
100,224.42
Year 2 Increase
$
176,819.47
Year 3 Increase
$
177,824.16
Year 4 Increase
$
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 CONTII\
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 1 $
402,660.00 1
8948
1$
45.00
$
370,309.23
61%
32%
1
20%
8%
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
UES 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%