Royal council tackles utility rates for 2023

Utility rates charged in Royal are set to increase, pending approval by the city council of new ordinance language next year.

Faced with higher charges by Town & Country Disposal for garbage collection, council members agreed the increases should be passed on to customers.

"I feel we should raise the percentage anytime they raise it on us," said Council Member Matt Goyette.

Council members agreed to increase the monthly rate to $22. The contract with Town & Country also indicates that a separate fuel charge may be assessed to the city. The council agreed to pass on that cost, pending an opinion from the city attorney.

Much discussion was held regarding increases in water and sewer rates. Maintenance Sherman Nielsen was questioned concerning installation of new water meters. He said the process was just under half completed. Installation of new meters will allow Nielsen to read them remotely, rather than have to go to each home. It would cost approximately $120 per meter to make remote reading possible.

"Personally, I think it's ridiculous to have to go up to each house and read meters. Remotely is the way to go," said Council Member Jim Virelli.

Each council member was polled regarding the amount that water and sewer rates should be increased. From their responses, consensus was reached on new rates.

The proposed minimum monthly rate for water is $25, with a $9 charge for each thousand used above 1,300 gallons. The minimum charge for sewer was set at $18.50, with an additional $5.25 for each thousand beyond 1,300 gallons.

The council also discussed replacing the current billing software. The new software would be compatible with the remote meter reading system. A target date of 2024 was set to purchase new hardware and software for that purpose.

According to discussion, the proposed increases are necessary to fund infrastructure and equipment upgrades.

"We need to explain to people why the rates are being raised," Virelli noted.

"I'm good with the way it is, knowing we are working toward it," said Council Member Sara Ricke.

• 1 contract questioned, another approved

Language of a new five-year agreement with Town & Country Disposal was questioned during the meeting. The initial proposal received in November called for "a 3 percent increase per year (15 percent for a five-year period)" for residential garbage collection.

The rate paid by the city for each residence is to increase $2.35 per month, from $15.75 to $18.10. The charge for recycling is to increase from $2 per month to $2.50.

The official contract states the entire 15 percent increase is effective at the start of the contract and not spread out over five years. City officials were under the impression the latter would be the case.

"I thought it was going up 3 percent each year, but we have to pay the full 15 percent," City Clerk Barb Fletcher said. "That's not the way they presented it."

"I agree. It's not what we were led to believe," responded Council Member Jeff Van Westen.

According to discussion, Town & Country Disposal will not raise the base rate again during the contract period. But the difference in language interpretation is something that council members want clarified.

"Three percent per year for five years is not the same at 15 percent with no increase for five years," Ricke noted.

Mayor Josh Toft agreed the language was "confusing" and offered to talk to Brad Beyenhof, of Town & Country Disposal. Final action was tabled until next month.

The council did approve a new law enforcement contract. Clay County Sheriff Chris Raveling explained last month that rising costs necessitate a 10 percent increase for services provided by his office.

Fletcher said the new annual rate is $13,176, or $3,294 per quarter. Royal currently pays $2,992.50 every three months.