Refuse/Recycling Fuel Surcharge
Friday, January 21 2011 12:00 AM
The City of Red Wing has implemented a policy for adding a monthly fuel surcharge for refuse and recycling collection. According to Council Policy, a fuel surcharge will be added to the monthly city services billing only after we have experienced three consecutive months where our price for diesel fuel exceeds $3.00 per gallon. Once this surcharge has been started, it will remain in effect for an equal number of months that our fuel price remains over $3.00 per gallon.
Example: Fuel cost for January, February, March and April exceeds $3.00. In May the fuel cost drops to $2.89. The fuel surcharge would be billed beginning in April and would also be billed in May, June and July. The August billing would no longer have the fuel surcharge. The surcharge would not be billed again unless we exceed the $3.00 price per gallon for three consecutive months.
This policy will allow us to keep our standard charges for refuse and recycling collection lower during times when fuel prices are lower. We believe this policy allows us to recover our cost of higher fuel, but it eliminates the need to charge a higher base rate if fuel costs stay below $3.00 per gallon.