City staff presents sanitation-rate analysis showing long-term undercharging, council asks for peer comparisons

City staff presented a sanitation worksheet and a Consumer Price Index (CPI)-based inflation analysis that showed the city’s residential sanitation rate — set in January 2019 — is under water compared with inflation-adjusted costs.

The presentation noted the current residential sanitation charge is $28.25 (as recorded in the packet) and that inflation from the 2019 baseline to March 2025 would add roughly $6 per customer. Staff also said some commercial accounts are charged atypical amounts in the billing system (one entry appeared to be a typographical error) and that overall the sanitation department’s revenue is well below what inflation would suggest.

Staff highlighted cost drivers: class-A driver wages and benefits, truck purchases and maintenance, fuel and hydraulic fluids, insurance and tires. The memo showed that, if adjusted solely for inflation, the sanitation fund would be tens of thousands of dollars higher monthly than current collections and that commercial collection rates are significantly lower than regional standards.

Council members asked staff to collect comparative rates from neighboring cities and counties, noting that some jurisdictions use a sales-tax-supported approach rather than per-customer fees. Staff said they would return with residential and commercial comparisons and suggested bringing the item back at the second meeting in May for further consideration.

Ending: The council requested a peer comparison of sanitation rates and asked staff to return with clearer options on timing and magnitude of any rate changes.