Council approves rate increase

Utility users within the City of Sundance have seen their rates remain flat for the last two years, but the council decided last week that the time has come for an increase – if only to keep up with inflation.

Clerk Treasurer Kathy Lenz presented the figures to the council for consideration, making the recommendation for a 4% increase across the board.

This, she said, would create about a $35,000 increase for the city’s budget, “So not a huge increase, but enough for our electric bills to pump the water, that’s going up every year and it will help cover those expenses that we are incurring.”

The council opted not to increase rates last year after a 6% rise for the 2020 year, which was found to be necessary to ensure the city’s enterprise accounts were paying for themselves and to compensate for the loss of the sixth cent tax as it ran its course.

The city has been following advice from a rate study performed in 2008 to increase rates by a modest amount each year specifically to address the former issue. This year, too, the 4% is needed to keep the books in order.

“There’s inflation in what we’re doing, there’s no doubt about that,” commented Mayor Paul Brooks, later adding that, “With inflation doing what it does, 4% may not be enough, but it’s a good start.”

The council approved the suggested increase of 4%, which will go into effect in January.