The South Beloit City Council voted Oct. 6 to approve a 10‑year renewal of the residential garbage franchise with Rock River Disposal Service Inc., with an initial service rate of $18.25 per month effective Jan. 1, 2026, and a 5% annual increase thereafter, city staff told the council.

City staff said the $18.25 figure covers a 95‑gallon garbage cart and a 65‑gallon recycling cart with unlimited recycling, and that equivalent services in neighboring communities range from about $20 to $27 per month. Yard‑waste collection would remain a subscription service (April 1–Nov. 30) and would be priced at $85 per year for subscribers.

The city’s presenter said Rock River originally proposed a larger increase and that staff negotiated the 5% annual rise. Staff noted previous contracts used CPI or 3% adjustments; the 5% fixed annual increase reflects prevailing market pressures in the hauling industry.

Council members and residents raised concerns about higher household costs. One council member asked whether city general‑fund reserves, including proceeds from local property sales (referred to as “Sunnyside money”), might be used to offset resident bills; staff replied that any such subsidy would require a separate ordinance and formal budget decisions. City staff emphasized that approving the contract does not, by itself, change the rate charged to customers — that requires a separate ordinance to amend billing rates.

Councilors were told staff believes a public bid would likely produce starting proposals above the $18.25 figure, citing recent rates in neighboring towns. The council approved the contract renewal by roll call. Staff said they will prepare the ordinance to set the customer billing rate and promised to provide finance-team analysis for possible subsidy options.

Speakers also reiterated a policy schedule and follow‑up: if the council wants to explore subsidies or budget offsets, staff recommended additional modeling and discussion at an upcoming meeting. The council agreed to continue that conversation at a future meeting when finance details are available.