Commercial garbage rates in Monticello will increase by $1 inabout 30 days.

The raise will not affect household garbage rates.

“Our household rates are fine, but we’re losing money on thebusinesses,” said Mayor David Nichols at a meeting of town aldermenTuesday.

Municipalities are mandated by law not to lose money on garbagepickup, he said.

However, although the town has been operating at a deficit ofabout 15 cents per business, it was an increase passed down fromWaste Management Inc. that prompted the local raise.

Nichols said the raise passed down by the contractor meant thetown would need to increase its commercial rate by approximately 50cents to break even.

“Or we can raise it a dollar and not have to raise it again forat least two years,” he said.

Waste Management can raise the rate each year based on theresults of the annual Consumer Price Index under the standardcontract it has with all municipalities.

Nichols pointed out the town pays the contractor at the samerate for each business located in the town whether that businessgenerates garbage or not.

Current commercial rates are $25 for one cart or $40 for twocarts.

The garbage rate was raised last about two years ago when thecity switched to its current cart system.