It’s an effort to replenish reserve funds, city administrator says
By Kellen Olshefski
Correspondent
The City of Elkhorn Common Council voted 6-0 in favor of increasing solid waste and recycling fees by $1.50 at its June 21 meeting, an action aimed at replenishing reserves after fees failed to cover the cost in 2020.
According to City Administrator Jim Heilman, citizens can expect to see the increase beginning with their August utility bills.
He said he looked at the possibility of raising fees last year, because the solid waste and recycling program operates solely on fees included on the monthly utility bill. But at that time, according to Heilman, the city still had a decent balance in the reserve funds for the program.
Heilman said in 2020, the city ultimately ended up spending about $46,000 from the reserve funds to cover the cost of services from Advanced Disposal (now owned by Waste Management), leaving around $20,000 in reserve funds.
“So, I’m looking at what I need to do to get us above that mark,” he said.
Heilman said with it being late in the year, the city would still need to spend roughly $15,000 to $16,000 from the reserves to cover the cost of services in 2021 even with a $1.50 increase. That increase, he said, would raise about $53,000 over the course of a year, replenishing the reserve funds next year.
“It’s been since 2014 since I think we raised rates, and it’s at a point now where we can’t sustain operations at the present level,” Heilman said.
Mayor Bruce Lechner and several aldermen again noted that citizens throughout Elkhorn have contacted them with concerns about the quality of services they’ve been receiving.
“I’ve gotten phone calls on the garbage service. People aren’t happy with it right now; now we’re going to raise their rates?” Lechner said.
He did add that City of Elkhorn Department of Public Works Manager Matt Lindstrom has been working with Advanced Disposal, and Lindstrom noted they’ve been working with the company to provide citizens with better information on services and bulk pickup procedures.
“I understand we have to cover our expenses, but I think we need to meet with them and get them on page to be picking up what we pay them for,” Lechner said.
Alderman Scott McClory expressed concerns that as the cost for services continue to increase from Advanced Disposal, he doesn’t want to see the council have to continually increase the fees as a way to cover the costs.
Heilman said the increase should cover the city in 2022, even with some increase in cost from the service provider, with the current contract with Advanced Disposal set to end in 2023.
Alderman Gary Payson Jr. said with citizens upset about the current service, he feels that not only should citizens not have to pay more for their service, but the city also needs to look at including performance-based standards when they renegotiate the contract.
“If customers are dissatisfied, why are we still paying them?” Payson said.
“It’s the same stuff the rest of us deal with in the private sector. If you’re not performing, you don’t get a raise, you don’t keep your job,” he added.
Heilman explained that the increase isn’t so much about the provider as it is the reserve funds, noting the increase is needed at this time whether the provider is Advanced Disposal or another company.
“I’m just gauging, looking at our fund, and we need to have certain amount of dollars to pay. We still have to pay our bills whether we raise our fees or not,” Heilman said.
“It came up in discussion, and 2023 is going to be here like that, so I’m bringing it up now and saying when we start talking about contracts, let’s make sure we’re doing our homework,” Payson said.
Payson said he also thinks it’s important to meet with Advanced Disposal’s regional representative, ensuring that the city and the service are working together to make sure citizens are aware of procedures and are satisfied with the service they’re paying for.
The council ultimately voted 6-0 in favor of increasing the fees by $1.50. Citizens are expected to see the increase on their utility bills beginning next month.
