Rowlett Lakeshore Times > News
Rowlett residents see the first of several impending utility rate hikes
By Lynn Proctor Windle, Managing Editor
Rowlett residents are now seeing the first of several utility rate hikes, beginning with garbage collection.
Due to rising fuel charges, residents will now see an increase of about 66 cents per garbage container added to their monthly bill.
IESI Corporation, the city’s garbage collection contractor, said increased fuel prices forced the increase request, which the city council approved in June. Based on numbers from mid June, the increase will cost the city $1,533 per month for commercial accounts and $11,787 for residential customers. It is this cost increase that the city is passing on to its customers.
City officials said the rate varies from customer to customer depending on the size of the polycart trash container and how often their trash is collected. Customers with only one trash cart should pay only about 66 cents more per month, however this number could go up or down, depending on current diesel fuel costs. Rates are higher for commercial customers.
The city's contract with IESI allows the company to bill the city for the fuel surcharge on a monthly bases. The surcharge will be billed to the city's customers the month after the city receives the bill from IESI.
Brian Funderburk, director of the city’s Finance and administration department said in a written statement, “It’s important to note that these rates are subject to change at the discretion of IESI,”
said B. “While not anticipated, it’s possible that these rates could change monthly.”
In May, IESI Corporation, Inc. submitted a request to increase temporarily the fuel surcharge, which is an option under its contract with the city.
Funderburk noted during council discussions of the issue that the company is not trying to recover past fuel expenses but rather cover future costs going forward.
The last time the council granted a temporary fuel surcharge was in June 2005 when it also approved a 2.02 percent rate increase, Funderburk said.
IESI also has requested a 4.4 percent to its monthly rate. Funderburk said that the city would ask that IESI to remove the fuel surcharge should it approve the monthly hike in its base rate.
Meanwhile, the city also is studying rate hikes for other utility services including water, sewer and electric.
Funderburk said these hike requests add up to about $811,000. This translates to about 3.3 percent or $3.50 per month increase per customer.
Due to rising fuel charges, residents will now see an increase of about 66 cents per garbage container added to their monthly bill.
IESI Corporation, the city’s garbage collection contractor, said increased fuel prices forced the increase request, which the city council approved in June. Based on numbers from mid June, the increase will cost the city $1,533 per month for commercial accounts and $11,787 for residential customers. It is this cost increase that the city is passing on to its customers.
City officials said the rate varies from customer to customer depending on the size of the polycart trash container and how often their trash is collected. Customers with only one trash cart should pay only about 66 cents more per month, however this number could go up or down, depending on current diesel fuel costs. Rates are higher for commercial customers.
The city's contract with IESI allows the company to bill the city for the fuel surcharge on a monthly bases. The surcharge will be billed to the city's customers the month after the city receives the bill from IESI.
Brian Funderburk, director of the city’s Finance and administration department said in a written statement, “It’s important to note that these rates are subject to change at the discretion of IESI,”
said B. “While not anticipated, it’s possible that these rates could change monthly.”
In May, IESI Corporation, Inc. submitted a request to increase temporarily the fuel surcharge, which is an option under its contract with the city.
Funderburk noted during council discussions of the issue that the company is not trying to recover past fuel expenses but rather cover future costs going forward.
The last time the council granted a temporary fuel surcharge was in June 2005 when it also approved a 2.02 percent rate increase, Funderburk said.
IESI also has requested a 4.4 percent to its monthly rate. Funderburk said that the city would ask that IESI to remove the fuel surcharge should it approve the monthly hike in its base rate.
Meanwhile, the city also is studying rate hikes for other utility services including water, sewer and electric.
Funderburk said these hike requests add up to about $811,000. This translates to about 3.3 percent or $3.50 per month increase per customer.
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