The current Residential Solid Waste rate was adopted in FY2018 after an extended period with no adjustments. The current monthly Residential Solid Waste fee of $13.60 includes once-a-week collection of customer refuse and recycling materials, two curbside bulk trash collections per year and three household hazardous waste collection opportunities per year.

Until recently, the Residential Solid Waste operating fund had benefitted from a number of factors such as favorable landfill rates, steady recycling rates and reduced diesel fuel prices that have enabled the operation to maintain relative price stability. The current environment is changing as the program’s operating costs are increasing at higher rates. The primary factors behind this cost growth are inflationary pressures, increasing landfill rates and lower annual recycling revenues due to depressed market conditions and increased processing costs. Serving a growing city is requiring the addition of staff and vehicles – eleven (11) staff and seven (7) vehicles from FY2016 – FY2019. The additional ongoing costs associated with these resource additions as well as the anticipated annual increases to the fund’s primary cost inputs exceed what the fund can support without additional rate revenues.

City staff is recommending that the monthly Residential Solid Waste rate for FY2019 adjust by $0.82 per account, or 6.0%, effective July 1, 2018. The adjustment will result in a resident’s monthly cost for service being $14.42 per month, which is still lower than the comparable rate was in FY2012. Staff is recommending a single year rate adoption for FY2019, but anticipates submitting two years of forecasted adjustments beginning in FY2020 that will coordinate with water and wastewater adjustments.

At the April 9, 2018 Council Budget Study Session, staff presented an overview of the recommendations for Residential Solid Waste rate adjustments for FY2019.

A: That the Mayor and Council adopt a Resolution adjusting the Residential Solid Waste rates, making the new rates effective July 1, 2018.

B: That the Mayor and Council elect to not adopt the recommended Residential Solid Waste rates planned to be effective on July 1, 2018. Not adopting the recommended rates, would continue the rates currently in effect.

The proposed Residential Solid Waste rate adjustment provides an appropriate level of revenue necessary in FY2019 for the service to address additional operational requirements. The proposed Residential Solid Waste rate adjustment are estimated to increase FY2019 Residential Solid Waste revenues by approximately $570,000 over the anticipated revenue increases from new customer growth in the fund.

The Residential Solid Waste rate adjustment will add an additional $0.82 to a resident’s bill, resulting in a monthly cost of $14.42 beginning July 1, 2018.