The added revenue will help meet transportation and fuel costs the city pays in transporting the solid waste to the landfill in Ogallala, said City Manager Kurt Fritsch at the Monday night budget talks.

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The enterprise funds of water, sewer and solid waste department, that are funded by user fees, will be discussed more thoroughly in upcoming budget meetings, scheduled for Monday, July 14 at 6:30 p.m. and again the following Monday, July 21.

The increase in solid waste collection was based upon a recommendation by an auditor last year, who advised the city of the low ending balance of the department.

Total revenue projected to be available for 2008-09 in the solid waste department is estimated at $1.9 million, with total disbursements estimated at $1.8 million, leaving less than $50,000, or $47,682, as the ending balance.

The ending balance of the sewer department is another area that city staff is watching. Although no increases are being proposed this year, the low ending balance is an area of concern. For 2008-09, $2.68 million is expected in revenues and $2.42 million is projected to be spent on disbursements, leaving $253,000.

Other concerns Fritsch mentioned included the skyrocketing cost of fuel.

As the budget gets closer to being finalizing, city staff will have a better sense of what to estimate in costs, he said.

Along with rising fuel expenses, other increases in the General Fund came from healthcare costs, Fritsch said.

About $120,000 more has been budgeted this year in group insurance rates for city employees.

Still, McCook's costs are less than other similar-sized cities, Fritsch said, such as in Alliance, where $20,000 is budgeted per employee compared to $11,600 for McCook city employees. For health and dental insurance, McCook city employees pay $10 for a single plan and $20 for family.

For property and liability insurance costs, city staff has estimated a 25 percent increase, based upon past escalations of these costs.

Increased funds for fuel and healthcare are taking a toll on some communities, Fritsch noted.

Some cities have gone to a four-day work week, he said, to save on air conditioning and heating costs, a move that can cut back expenses up to 20 percent.

Fritsch said he's not proposing that in McCook, but it may be something the council can consider in the future if costs continue to build.

Councilman Jack Rogers asked about partnering with other entities in reducing expenses and Fritsch responded he's already been in discussions concerning that.

"We're looking at all the options," Fritsch said. "The door is open if there is a way to saving funding."