Harrington News

HARRINGTON – Those acknowledged as present: Mayor Nathan Luck, Council members David Buddrius, Peter Davenport, Justin Slack, Stephen Hardy, Levi Schenk, Clerk Janice Cepeda, and visitor Cherie MacClellan. The agenda for this meeting which was slated as "Special Meeting: 2021 Budget Amendment" was limited to said amendment. Upon opening the meeting, Slack stated that this meeting was going to be a public hearing. Mayor Luck opened the council meeting at 7:07 and the public hearing at 7:09. Two drafts were available and discussed: (1) Ordinance No. 506 and (2) Resolution No. 225-2021. The original intent for the meeting was for the Council to vote on their contents.

Mayor Luck began the initial discussion pertaining to the details of the Resolution 225-2021:

"Whereas, Ordinance No. 330 provides that future changes in rates may be set by the City Council by resolution; and Whereas, in order to have sufficient funds to make contracted payments to our garbage carrier as well as with the Lincoln County Transfer Station it will be necessary to increase the monthly garbage rates for all totes; and Whereas, the Utility Service Tax of 20% on accounts for Water, Sewer, and Garbage for all users will remain unchanged. Whereas, it is the determination of the City Council that rates for inactive accounts, which are accounts, which are still connected to the City water and sewer service, but the house or commercial property;/building is vacant and service is off at their water meter, will need to be increased to make reserves and payments. Now, Therefore, Be It Ordained By the City Council of the City of Harrington As Follows: Section 1: The rate for water service for inactive accounts, provided by the City of Harrington shall increase to active account status, thus there will be no Residential Shut-off fee. Rates will increase from $14.32 per month to $36.27 per month, with no garbage service. Section 2: The rate for sewer service for inactive sewer accounts, provided by the City of Harrington shall increase to active account status from $41.97 per month to $77.94 per month using our established ERU basis, thus there will be no Residential Shut-off fee, with no garbage service. Section 3: The monthly garbage rates shall increase from $20.07 to $22.00 for 96 gallon totes, from $19.50 to $20.00 for 65 gallon totes, and from $18.94 to $19.00 for 32 gallon totes. Section 4: The rate for the Utility Service Tax of 20% shall remain unchanged in Current Expense. Section 5: Future changes in rates may be set by resolution of the City Council. Section 6: This resolution shall go into force and effect from and after Feb 24th, 2020 (sic), upon passage by the city Council and publication in the newspaper. Passed by the Council of the City of Harrington this 24th day of February, 2021. (DRAFT)”

Discussion of the above resolution overlapped somewhat with the draft for the amendment discussion, since the Council needs extra funds guaranteed before it can pass additional expenditures in the budget. During this lengthy discussion, several interesting points became clear. Councilman Davenport was not informed until Monday via email as to what all these new figures were going to be. Hardy mentioned that the garbage fund in 2020 was "under by about $20,000," which was confirmed by Mayor Luck. One of the primary reasons given was the tipping fees that the city pays. The tipping fees result from Sunshine Disposal taking the garbage from Harrington to the Lincoln Co. Transfer Station in Davenport, and reportedly that fee was raised by the county (but not this year). The mayor said it was raised the year before. There was little discussion as to how the $20,000 shortfall occurred, just a vague statement that the city was losing money over time.

Davenport asked how many inactive sewer accounts there are and Luck stated that there are around 20. Davenport wanted to know if there was any feedback from the citizens who would be affected by the sewer rate changes, to which the Mayor replied, "Nothing lately; one customer said that they wanted to be disconnected if it goes up.” Davenport asked if these increases had specifically been advertised. The Mayor responded that the advertising did not reveal the amounts nor that the actual rates could go up. Hardy wanted to know if that is historically done or a historical precedent. The Mayor said, "No." Buddrius reminded Council that last year the citizens had been assured that a notice would be put on their bills that a budget meeting for discussing rates was to be held.

Items amending Ordinance #504 included:

"Whereas line item Sales and Service under Cemetery have been separated, reflecting no overall revenue change; and Whereas money set aside for the purchase of a Maintenance vehicle has been increased from $15,000 to $20,000; and Whereas Maintenance wages have been increased for the Public Works Supervisor position, and the Public Works Employee; and Whereas inactive Utility rates will increase to active rates without garbage service, refer to Resolution No. 225.2021; and Whereas garbage tote rates will increase, refer to Resolution No. 225.2021. No, Therefore, Be it Ordained By the City of Harrington As Follows: Section 1: The Annual Budget of the City of Harrington for the year 2021 and each and every item thereof as fixed and determined in the Final Budget for the year 2021, as revised by the city Council, is hereby adopted as appended thereto, and the amount raised by taxation is approximately $50,000.00 and the Utility Tax is approximately $75,100.00. Section II: The Salaries and Wages set forth in detail in this budget, on file in the Office of the City Clerk, constitute the appropriation for salaries and wages, which will be paid to the officers and employees of the City. Section III: This Ordinance Shall Be in full force and effect after passage and publication by the City of Harrington this 24th day of Feb 2021, and approved by its Mayor. (DRAFT).”

Council had previously discussed the need to replace one of its trucks, and some agreement was held that a maintenance vehicle could be purchased for $15,000 as set forth in the original 2021 budget. Mayor Luck wants to add $5,000 to it in order to ensure having sufficient funds to get extra equipment on it that might be needed. When Buddrius asked if they allocate the extra $5,000 for the truck, and if it is not needed for the maintenance vehicle, what would happen to that extra $5,000? The Mayor stated that the City would reallocate the $5,000 to another project or purchase, somewhere.

Davenport wanted to vote on the separate issues, as he was openly opposed to raising the inactive accounts to full payment. Schenk asked if Harrington is the only city that gives a discount for inactive accounts. Mayor Luck said that he thought so.

Councilman Slack spoke of equity and fairness, and ability and access. His implication was that he (and other account users) were paying the way for the inactive account users. Rates are going up, and these people are being incentivized to do nothing with their property and they have the same access to the pipes as current open account users.

Hardy and Slack kept emphasizing that if the rate increase does not happen, wages won't happen, and the $5,000 extra money for the vehicle won't happen, i.e. there would be a domino effect. Davenport continued expressing his concern for what local citizens were aware of and wanting to hear their opinion on the Council's decisions. Slack reminded Council that the $1.62 an hour increase in wages recently given to the maintenance supervisor amounts to roughly $300 per month or $3,600 per year, adding that the $5,000 for the truck and would amount to $8,500. Davenport told the Mayor it seemed as though the City was trying to get all the needed money out of the inactive accounts. The Mayor responded that he was "just trying to not increase the active accounts." Schenk asked when rates for inactive accounts were last increased. Slack said that about two years ago the rate was only $25, and that the Council made a significant increase to bring it higher then.

There was some discussion of giving building owners with inactive accounts the option of disconnecting from City sewer and water. Buddrius wanted to know how many in town will unhook completely, to Luck replied that one had requested to do so. Slack wanted to know if the City had to allow them to unhook, and the Mayor said, "I don't see why not." Buddrius said that in his opinion the City is lucky they are hooked up.

With no conclusions drawn and no votes taken, it was decided that the next Public Hearing would be advertised and also posted on the water bills. Council decided to meet at 6 p.m. on Wednesday, March 17. Hardy requested that Council meet at city hall if it is legal to do so and that visitors continue to attend via Zoom. The public hearing and Council meeting were then closed without discussion. The regular monthly meeting is scheduled to be on March 10, the second Wednesday of the month.