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Staff recommends holding utility rates; garbage contractor alerts council to 4.3% CPI increase
Summary
City staff proposed to hold municipal utility rates steady for FY2526 while continuing an audit and rate study; Republic Services notified the city of a 4.3% CPI-based garbage-collection increase effective Feb. 1, and staff confirmed the solid-waste contract runs through Jan. 31, 2027.
City staff told the Nassau City Council they propose holding city-provided utility rates steady for FY2526 while staff completes a utility-billing audit and a formal rate study; at the same time, the city's contracted garbage collector provided notice of a CPI-based rate increase.
"Utility rates, which are proposed are to remain the same... let's hold them steady for now, let's get the budget underway, let's continue the audit of our utility billing system, let's proceed forward with our utility rate study and let's see where that all comes out," Mr. Hemminger said. He explained staff does not want to raise rates before correcting known billing issues.
Hemminger said garbage-collection costs include a CPI-based increase under the current contract. A slide shown to council indicated Republic Services proposed a 4.3% CPI increase effective Feb. 1; staff said the contractor was obligated to provide notice by July 31 and had done so. Council asked about the contract term; staff confirmed the current public-services/garbage contract runs through Jan. 31, 2027.
When council asked whether the city could exit the contract early, Hemminger said staff's experience is early termination is unlikely absent a contractor default and recommended preparing for a standard procurement in the fourth quarter of 2026 so the city can solicit bids before the contract expires.
Ending: Staff recommended maintaining current utility rates pending audit and study, advised the council of the Republic Services CPI notice, and confirmed the contract end date of Jan. 31, 2027; no procurement action was taken at the workshop.
