Garbage fees may be on rise

Elected officials are considering a proposal that would raise garbage collection and disposal for customers in the solid waste 2007-2008 budget. The added fees would increase revenue by $50,000.

The current fee is for solid waste, which appears on water bills as $10.50 per month, per residence. The fee represents three different services ? $7 for garbage, $2.50 for brush service and $1 for junk pick up.

Depending on which fee increase is chosen, the burden could be placed solely on commercial, mostly on commercial, or slightly more on residential. The three proposals:

? Option one ? A 13.5 percent commercial increase only, generating a revenue increase of $49,850.

? Option two ? A 9.5 percent commercial increase plus a 25 cent residential increase, generating $49,993.

? Option three ? A 5.5 percent commercial increase plus a 50 cent residential increase, generating $50,126.

The last increase in fees put the majority of the increase on the shoulders of residents. That increase was in 2005 and added $1.50 to the brush service for fuel adjustment.

When presented with a breakdown of solid waste production versus revenues received, the last increase left residential producing less waste than commercial, but paying more.

Currently, 42 percent of the solid waste produced is done so by residential with the remaining 58 percent by commercial. However, 63 percent of the revenue is paid for by residential with only 37 percent paid by commercial.

?We were looking at the one in the middle (option two) but since then I understand that the last solid waste increase all went on residential,? said city administrator David Rutherford to the Street and Sanitation Committee. ?With that information, you may want to revisit how you do that. What you need to do is to try and find some way to make it as equitable as possible.?

Going with option one would mean an increase of 13.5 percent for commercial and no increase for residential. Unlike residential, which is a monthly fee of $10.50, commercial fees are based on the type of container and the number of times per week it is picked up.

The need for the increase now is the same need two years ago, the climbing cost of fuel. The majority of the revenue increase would be used to cover the surcharge for fuel in the contract between the city and Southern Central Iron & Metal, the company handling the city?s garbage.

Within the contract, a 1 percent surcharge is added once diesel fuel costs reach $3. For every penny over the $3 mark, a .05 percent increase will be added to the 1 percent surcharge cost.

A committee meeting to discuss the proposal is set for June 12. If a recommendation is made to the full board, it will need two votes to pass.