STARKVILLE — City residents could soon see their sanitation bill increase by $3.25 per month.
Aldermen this evening will consider raising the monthly rate for residential sanitation services to $19.50. If approved, the new rate would be effective June 1.
Mayor Lynn Spruill said the main driver of the rate increase is rising operational costs for the Sanitation and Environmental Services Department, projected to finish this fiscal year with a $650,000 deficit.
This increase would generate $448,500 annually from roughly 11,500 residential customers.
“The bottom line is increased costs,” Spruill said. “I think everyone recognizes that, over the past eight years — which is actually the last time we raised operational rates other than to account for increased cost of garbage bags — we haven’t raised our rates.”
In 2019, a $1.50 landfill remediation fee was added to the city’s sanitation rates, but these funds were escrowed and cannot be applied to day-to-day operations of the department.
Spruill said the new rate adjustment will help with the rising costs of gas, oil, vehicles, and other equipment to keep the department functioning. According to the proposal, the current sanitation rates should be $19.55, if the rate had been adjusted for inflation.
Christopher Smiley, sanitation director, said the new rates would also help with $505,000 of upcoming equipment purchase needs.
“This rate increase would get us back in the market and breaking even,” Smiley said. “Due to not having a rate increase in eight years, it’s put us … playing catch-up. … It would help us to keep up with the latest equipment and latest technology to move forward and provide good service.”
According to the proposal, upcoming capital purchases include a new small garbage truck, a new street sweeper, new lawn mowers, improving the sanitation building’s roof, and the annual truck budget.
Some of that equipment could be financed, said Ward 2 Alderman Sistrunk, the board’s budget chair.
Sistrunk said the amount of the new proposed rate was considered from many angles, including inflation and capital purchases, but also an upcoming mandated employer contribution increase from the Public Employees’ Retirement System from 17.4 percent to 22.4 percent.
Sistrunk said the current market of peer cities’ sanitation rates, which she considers to be “in flux,” was taken into account when considering the new rate.
“We’re the lowest rate among cities that provide twice a week garbage pickup,” Sistrunk said. “This will put us nearer the top. But those cities are also looking at their rates. Columbus did an RFP very recently for their garbage pickup, and from what I understand, all the bids that came back were higher than what they currently charge for garbage pickup.”
Of the cities considered by the aldermen’s proposal, Starkville currently has the lowest rate for two pickups a week at $16.25, while Tupelo charges $17.47 and Columbus charges $17.50. The highest in the area was Oxford, which charges $22.
Sistrunk emphasized that the comparison between cities is not “apples to apples,” as the Sanitation and Environmental Services Department provides more services than many other sanitation departments. This includes general city beautification, landscaping services and special senior pickup services.
Spruill said she is “very comfortable” with the proposed rate increase based on the number of services the Sanitation and Environmental Services department provides.
“Our service that we perform and will continue to perform is the best service that you can find,” Spruill said. “I truly believe that our sanitation service is incredibly well-positioned to give the most customer-friendly service, and that we do that on a daily basis.”
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