Westminster City reviews revenues, flags missed solid-waste rate and potential utility increases

Westminster City staff reviewed revenue trends and possible utility-rate changes during an April 8 budget workshop, telling council members a missed solid-waste rate application will be corrected on upcoming bills and that future increases may be needed to cover service costs and longer-term obligations.

City administrator (name not specified) told the council that ‘‘I found out today, we have not we did not apply the 3 and a half percent rate increase to our residential customers July 1 as we should have’’ and that ‘‘it'll go on the next bills that go out ... their May bill.’’ The administrator said staff will present a proposed budget at a special-call meeting on April 29 and that first and second readings are scheduled for May 13 and June 17, respectively.

Why it matters: The missed application of the solid-waste increase affects near-term collections and the department's ability to cover a new sanitation truck and operating costs. Council members and staff discussed timing options for rate changes — splitting increases, delaying until January, or targeting specific customer groups — as a way to reduce immediate customer burden.

Revenue review and one-time funds City staff walked the council through revenue lines, noting one-time and grant inflows that distort year-to-year comparisons. The presentation called out a roughly $5,000,000 one-time appropriation that hit the general fund in the prior year (the presenter described it as a one-time appropriation tied to a project) and an additional approximately $600,000 that affected the balance sheet. Staff said line-item detail will be provided in the formal budget packet.

Grants and audit adjustments also altered fund balances, staff said. Finance staff member Jason White was named as the person who records year-end journal adjustments that sometimes reclassify grant receipts into miscellaneous lines before they are moved to the appropriate fund.

Solid waste: missed increase, truck funding and timing Staff confirmed the 3.5% solid-waste increase approved previously was not applied to residential accounts and will appear on upcoming bills in May. The city administrator said that discovery would likely make staff more conservative in proposing additional rate increases for the current budget cycle because there will not be full-year data to show the effect of the uncollected amount.

On the truck purchase, staff said the sanitation truck purchase drove a prior capital spike and that ongoing small increases (staff estimated total future increases likely under 5%) would be considered to cover capital and operations. Council discussion centered on whether to apply an increase now or wait until the January billing cycle so residents do not see multiple increases during high electric-use months.

Utilities, PMPA settlement and longer-term pressures Staff described how electric, water and sewer receipts compare historically and noted a multi-year settlement with the municipal power agency (PMPA) carries an amortization that will produce a roughly $1,000,000 “balloon” payment at the end of a 10-year schedule if the city does not set aside funds. The presenter said, ‘‘You got 10 years and a million dollars, hundred thousand dollars a year’’ as a straight-line illustration of the obligation and urged prudence in setting aside funds.

Staff also said Oconee Nuclear Station’s relicensing (noted as recently extended for Oconee) may change amortization needs and that some savings could come if the city is able to sell excess capacity created by local decisions; councilmember Joel Ledbetter’s prior resolution authorizing a sale of excess capacity was referenced as part of that potential path.

Public safety and intergovernmental funding The presentation included a discussion of the city’s fire contract with Oconee County. Staff said the city has a five-year contract with a one-year notice provision and that county officials have signaled changes to contracting with neighboring municipalities. Chief Michael Smith and staff have discussed county funding with county official Tommy James; staff said any additional firefighters would depend on increased funding from the county, which the city’s budget alone cannot absorb.

Recreation and staffing Staff noted Youth Recreation operations closely track revenue and expenditures and that Recreation Director Herb secured an equipment grant that saved “about a hundred and $50,000” in equipment purchases last fiscal year. Council was told the current draft budget includes one new full-time position for recreation — an assistant director budgeted at about $55,000 — to provide operational support for fields and programming.

Process and next steps Staff reiterated the adoption timeline: proposed budget presentation at the April 29 special-call meeting, first reading May 13, second reading June 17, with final adoption required in June under current schedule. The administrator said staff will return with line-item detail and more precise projections, including the expected revenue impact of the missed solid-waste change.

Votes at the meeting were procedural. Council moved to adjourn at the end of the workshop; Dale seconded and the motion carried by voice vote.

Ending: Council members directed staff to bring the detailed budget and scenarios for rate-timing options to the April 29 meeting so members can review specific revenue projections before the first reading in May.