Town explains utility tax increase

REARDAN —In order to offset an expected shortfall in revenue that town officials said would adversely affect basic town service levels, the Town Council implemented a utility tax that will increase resident’s utility bills by $66 per month at the end of 2023.

On Dec. 22, the Town sent a letter to all of its residents informing them of the increase.

The letter, signed by Mayor Gail Daniels and councilmembers Rocky Kidder, Celeste Lewis, Clay Soliday, Dan Graham and Leanne Merkel stated the town had not increased utility rates since 2018, and that the shortfall in revenue resulted from its limited tax base.

The monthly increase is $15 for water, $27 for sewer and $24 for garbage.

“The cost of maintaining fire and police protection, replacing water and sewer lines, and general upkeep has forced the town to raise the base rates for water, sewage and garbage,” the letter said.

Daniels reported that none of the town’s five employees will receive a salary increase or cost-of-living increase in 2024.

The town was twice forced to take loans from its own accounts in 2023 to pay the bills and avoid a deficit.

Reardan will pay itself back, with interest, town officials have said.

Records show that from 2019 to 2022, at least one town fund operated in a deficit due to low tax revenue that, after 2020, was often offset and covered by American Rescue Plan Act dollars disbursed during the COVID-19 pandemic.

Editor Drew Lawson contributed to this report.