The Powell City Council is pursuing a sanitation rate increase, the first in 14 years. 

At its regular meeting this month, the council passed the ordinance to change the rates on second reading, and it will come before the council again on June 20, for the third and final reading. 

During the budget work session in May, the council discussed a looming budget shortfall in the sanitation department that would, at the current rates, create a deficit estimated to be over $200,000 in the coming fiscal year. 

Currently, residential rates are $31.10 per month, and small commercial monthly rates are $33.55. Under the new rates, residents will pay $36 per month, and businesses will pay $38.83. 

Anticipating ongoing fuel cost increases, the new rates will also implement a fuel surcharge. 

Based on retail prices reported by the Energy Information Administration for the Rocky Mountain Region, customers will pay 1% of their monthly garbate rate when diesel fuel prices are between $3 and $3.20 per gallon, and another 0.5% on their monthly rate for each $0.20 over that. 

This week, retail diesel prices were $5.59. 

When fuel prices fall below $3 per gallon, customers won’t be assessed the fuel surcharge. 

“Hopefully we can get back to $3 a gallon soon,” Mayor John Wetzel said at the council’s May 16 meeting. 

Wetzel asked if the increase in sanitation rates will address the department’s budget deficit for an extended period of time, as the previous rates had. City Administrator Zack Thorington said it would. 

If the rate increase proposal is approved on third reading, commercial customers with twice per week pick up, who currently pay $78.58 per month, will pay $90.95 per month. For customers needing three-times per week pick up, the rate will go from $96.30 per month to $111.46 per month. For customers with six times per week collection, rates will go from $128.67 per month to $148.92 per month. 

The city’s cardboard recycling rates for commercial customers with the metal collection cans will also increase. Currently, 1-yard sized cans pay $3.50 per month for weekly collection, and that will increase to $5 per month. Two-yard cans will increase from $5 to $7, and 3-yard cans will increase from $6 to $12 per month. 

Residential and commercial customers without the recycling cans will continue to pay a $2 recycling fee, which supports the Powell Valley Recycling Center.