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Bandera council debates sludge removal accounting and garbage rates
Summary
Council members and staff discussed how sludge removal costs were allocated across garbage and sewer lines, noting the city purchased a sludge box for about $38,000 to replace a $2,300/month rental and recommended any permanent reallocation be handled during the next budget cycle.
City staff and councilmembers spent substantial time discussing how sludge removal and garbage billing are reflected in the budget.
Allison, the city finance/staff lead, said the city had rented a sludge-removal box for $2,300 per month from a vendor (identified in packet as Aquazyme), but recently purchased the box outright for approximately $38,000 to eliminate the ongoing rental. She clarified that previously the rental and emptying had been grouped under the garbage revenue/expenditure line; staff suggested it is more appropriate as a sewer expense since sludge is a byproduct of wastewater treatment and only sewer customers benefit from that service.
Council debated whether to move the sludge line to sewer rates in the current budget or defer the change to next year's budget process. Staff suggested keeping the existing line for the current fiscal year (the box purchase is already budgeted) and proposing a sewer-rate adjustment in the next budget to distribute ongoing removal costs across sewer customers.
"We just bought the box to get rid of that cost," Allison said during the discussion, noting the purchase was approved in the budget and the box is expected to pay for itself in about 15 months.
The council did not take an immediate rate-setting action but directed staff to include potential sewer-rate adjustments in the next budget cycle and to provide clearer line-item reporting so residents can see how sludge removal is funded.
