City water and garbage rates to go up

Solid waste and water rates for city residents will likely increase this year, but by how much remains up for debate.

Whitefish City Council on Monday directed staff to study the pros and cons of increasing rates by 3 percent for solid waste and between 3 and 5.7 percent for water and wastewater. Council will vote on the proposed increases at their next meeting.

If enacted, a 5.7 percent water and wastewater rate increase would result an additional charge of about $4.25 per month for a typical single family home.

A 3 percent increase in solid waste rates would result in an additional charge of about 25 cents per month for a typical home.

Public Works director John Wilson notes in his staff report that annual rate increases bring in needed revenue to help the city keep pace with rising costs such as fuel, power, labor and insurance. They use the Consumer Price Index to determine the appropriate increase.

Wilson reminded council that a very expensive upgrade to the city’s water treatment facility is on the horizon as more stringent requirements for nutrient removal are enacted.

A slight rate increase annually would soften the blow of having to fund the estimated $10 million to $15 million project later on.

“Last year we recognized that we have a huge wastewater project coming,” Wilson said. “It’s inevitable. We are simply going to have to borrow millions and millions of dollars down the road. It’s going to be a big hit later.”

Councilor Chris Hyatt recognized the looming expense, but said 5.7 percent was a big jump, especially when factored over many years.

“I agree we need to do something,” Hyatt said, “but not 5.7 percent. I have a hard time any time we start ratcheting it up like that.”

Phil Mitchell also suggested a lower rate increase.

“We need to tread lightly for people trying to live in this town,” he said.

Frank Sweeney said the increase was “good fiscal soundness.”

A new five year contract for garbage collection approved in 2011 provides a 3 percent annual increase for contract fees, as well as a 3 percent annual increase for user rates. The city can choose to forego the annual rate increase in years when cash reserves are sufficient.

Wilson notes that this year’s budget is capable of absorbing the 3 percent increase.

“Nevertheless, cash reserves will increase at a slower rate if the council chooses not to implement the increase,” Wilson stated.

He notes that proposals to expand the city’s bear-resistant container ordinance would result in a bump to the city’s garbage collection contract.

“The cost from the hauler will be greater,” he said. “A rate increase gives us less chance of a big bump.”

Richard Hildner noted that enacting the annual increase could also allow the city to look at improving the recycling program.