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Council approves 12% sanitation-rate increase to address $340,000 fund shortfall
Summary
The Town Manager reported a sanitation fund deficit of about $340,000 after billing-software reconciliation and vendor-cost increases (landfill +25%, contractor CPI adjustments). The council approved a roughly 12% rate increase effective Nov. 1 to restore solvency; staff will seek additional vendor documentation on landfill cost drivers.
Town Manager Alex Brown told the Silver City Town Council the sanitation fund is currently about $340,000 in the red after accounting-system and billing-software reconciliations and an audit of collection containers.
"As of our last council meeting... as of Monday, the sanitation fund is in the red of about $340,000," Brown said, explaining that landfill rates increased about 25% in the prior fiscal year and the town's collection contractor has CPI-linked increases.
Brown recommended a roughly 12% rate increase, effective Nov. 1, to bring the sanitation fund back near break-even. He said delaying the increase would deepen the deficit and require a larger hike later; staff estimated postponing action to the next meeting could push the shortfall nearer to $400,000.
Councilors expressed concern about service performance from the contracted hauler, asked for a county-level explanation of the landfill rate change and requested a vendor report to justify the 25% landfill increase. Council also discussed options to renegotiate contracts and to review alternative providers, but Brown said immediate action was needed to stop further deterioration of the fund balance.
A motion to approve the sanitation rate increase carried on a recorded roll call; councilors asked staff to obtain supporting documentation from the landfill operator and to provide a clearer cost breakdown for future discussions.
The rate change was approved by the council and staff said it would be implemented with an intended Nov. 1 effective date.
