The highlight of the Rensselaer City Council meeting on Monday evening was a report by John Julien, who works for Baker-Tilly and is the City's financial consultant. He presented findings on several issues facing the City.
His firm did an analysis of the sewage rate. Revenues have declined a bit, partially due to the closing of SJC. Operating costs, mostly in the form of wages and benefits, have risen. He suggested that the city needs a 10% increase in rates to balance between costs and revenues.
However, the City also has an upcoming sewage project that will replace the current lift station east of Weston Cemetery and extend sewage lines. That project proposes rebuilding the lift station next to the high-rate treatment plant on Lincoln Street. He suggested that an addition 10% increase was needed for that project. Hence, the total increase in rates that he recommended was 20%, which he suggested could be implemented in two or three stages, perhaps the first 10% in January of 2021 and the second in January of 2022.
He said that in August he would present a report on the water department. Here revenues have been constant but costs have risen. He anticipates a recommended rate increase of 12% to 15%. This would help prepare for the next water project, which will likely be a water tower near the Interstate to improve water pressure for those customers.
A third area of recommendation was for the trash pick-up program. User fees, both stickers and payments by businesses for their trash services, raise about $500,000 but costs are $700,000. The difference is picked up from the general fund. He suggested that the finances of trash pickup be given their own set of books, which has been the trend in other cities with municipal service. He also recommended that the sticker program be replaced with a standard residential monthly charge of about $17.85 and that this change begin in January of 2021. The majority of people will see an increase. This rate would help the City update its trucks with lifts that would operate with uniform trash containers, which the City would provide to residents. (Not mentioned was whether the new trucks with lifts would allow the reduction in employees.) In response to a question if a lower rate could be charged to households that do not generate much trash, he said that once the totes or containers were provided, some households could be given smaller containers and charged less.
Only one action on these reports was taken at the Monday meeting. The Council passed a motion that the 2021 budget, which will be presented in August, should be prepared with sanitation removed from the general fund. The next two meetings will have the public hearings and ordinances that make these reports policy.
In other business, the Council approved a request from the Eagles to close Harrison Street for a fish fry provided that the Little Cousin Jasper Festival does not get canceled. It approved two transfers of funds. It delayed consideration of an extension of the IMPA contract to next month. It gave the Police Department permission to tell Dodge what it would like in a new squad car but the actual purchase will not be approved until an order is placed. The Awards Committee recommended adding a 40-year service award to the 10, 20, and 30-year awards and that recommendation was accepted. The 10-year award is a plaque, the 20 and engraved clock, the 20 an engraved watch. The 40-year award will be a jacket and a $400 bonus.
A committee was appointed to consider a golf-cart ordinance. The City employee picnic has been canceled and a committee was appointed to consider to plan some alternative celebration. The recycling department has ordered new glass crushers to replace one that has failed and another that is failing.
In other news, a new trail in Brookside Park has been paved. It runs from the parking lot around the south side of Roth Field, then north through the tennis courts to connect to the new Blacker Fields.
Sorry to see the trash sticker program go away. First, from an environmental point of view, it encourages recycling. Second, we put out about 2 cans per month (Yes we recycle) so our fees will REALLY increase.
ReplyDeleteSo excited to see this sticker thing go away. Will my fees go up? Yes.
ReplyDeleteBUT...my trash will go out every week it needs to since I won't need to run around town scrambling for stickers after regular business hours.
Indiana sales tax levied on utility bills will no doubt accompany the water, sewage and trash increases resulting in an additional 7% amount owed.
ReplyDelete