DECATUR — Residents of Decatur will see a $0.54 increase on their water and trash bills next year.

Mindy Becker, director of sales for Deffenbaugh of Arkansas, told the council her company will need a 5.5 percent increase for trash pick-up to cover rising fuel and landfill costs. Two and a half percent will cover fuel increases in residential trash pickup and 3 percent will cover increases in landfill costs, she said.

“I personally think its a very reasonable increase,” said Mayor Charles Linam.

The city’s contract with Deffenbaugh already specifies they have the option to raise prices for fuel increases, city administrative assistant Kim Wilkins said. Because of the contract, a resolution by the council was not needed.

City to pay for new tree

The city will pay $400 to replace a tree on Tommy and Betty Turner’s property that was destroyed when new water lines were laid last summer, council members decided at the Nov. 14 meeting.

In August, the council agreed to pay the Turners $3,800 to have the property cleaned up and to pay to have a tree replanted. Councilwoman Nan McClain agreed to research prices and find the best price for a new tree. In return, the Turners agreed to sign an easement - after the fact - to allow city waterlines across their property.

On Nov. 14, Tommy and Betty Turner again appeared before the council to request payment for the tree.

Tommy Turner said that after the August meeting he came up to city hall to collect the $3,800 and sign the easement. Tommy Turner said they were told that James Boston was out of town and couldn’t provide a second signature on the check for the tree, but that he would sign it the next week when he returned, so the Turners went ahead and signed the easement.

Tommy Turner said that he was later told that thecity would not pay for the tree because the easement stated the city wasn’t responsible for replacing trees and bushes.

“We owe them for the tree,” said councilwoman Gina Holt.

Mayor Charles Linam said he questioned the price of the tree because he was under the impression that it would cost $220, but instead it cost nearly twice as much.

McClain explained that the increase in cost was because the first estimate was based on the trees the landscaping company had in stock at the time and the second price was based on new stock.

The council unanimously voted to pay the $400 for the tree.

Administrator Bonding

Council members voted to save the city $5,250 a year by discontinuing a bond covering mayor Charles Linam and city administrative assistant Kim Wilkins.

The bond covers both Wilkins and Linam for $700,000 each. Every city employee is covered by astate plan for $250,000, but the $700,000 bond is in addition, Linam explained.

The city’s largest account has $300,000 in it and requires two signatures to withdraw money, so it would be well covered under the $250,000 bond, Linam said.

City utilities director James Boston also pointed out that the bank keeps a close eye on the city’s accounts.

“I don’t think the city is under any risk of loss by any stretch of the imagination,” Linam said.

Employee Health Insurance Plan

The city will see a significant increase in costs to cover employees with health insurance next year, Linam reported to the council.

The city’s insurance company is raising rates because it paid out 150 percent of employees premiums last year, therefore it is raising rates for next year, Linam explained.

The city pays 100 percent of employees coverage but employees are required to pay for their family’s coverage.

News, Pages 12 on 11/23/2011