5.6. SR 11-20-1995 - Laserfiche WebLink

Home Browse Search

GARBAGE COLLECTION PROGRAM - -- Provides for the coordination with the Elk River Municipal Utilities • for the billing of the garbage collection program. The garbage collection program includes expenditures for the total administration and service contracts for the operation of the City garbage and recycling collection program. 1996 BUDGET COMPARED WITH 1995 BUDGET The 1996 Garbage Collection Program budget is proposed in the amount of $697,750. This is $19,100 less than the adopted 1995 budget. The reason for this budget decrease is a more accurate estimate for the haulers contract. The garbage haulers contract is the single largest item in the Garbage Collection budget and this fee was estimated high in the 1995 budget. The contract amount is approximately 97 percent of the total budget. The other expenses in the Garbage Collection Program includes expenses for the Zoning Assistant to help in the administration of the program; the fee charged by the Municipal Utilities to bill out and collect the garbage charges; for miscellaneous legal expenses related to the ordinance and contract; and for the audit. • In the early years of the program, the charges for services to the residents did not cover all of the operating expenses and the garbage fund showed an operating loss. This operating loss was due to the city subsidizing the 32 gallon bi- weekly pick up service, and due to the city subsidizing the plastics component of the recycling program. This subsidy was funded from the Landfill surcharge that is designated for waste abatement purposes. In 1994, the garbage charges to the residents were decreased and restructured due to a reduction in the tipping fee paid by the garbage haulers at the Refuse Derived Fuel plant. Through the restructuring of the fees to the residents, it is estimated that the garbage collection budget will be self sufficient in 1995 and beyond. Fees that are not paid by the residents are assessed to their property taxes as allowed by state law. The Elk River Municipal Utilities department collects garbage fees and remits the money to the city on a monthly basis. The city then makes monthly payments to the three garbage collection firms which are under contract with the city. Currently this program bills for the collection of approximately 2,500 ninety gallon containers, 560 thirty -two gallon containers, both of which are picked up weekly, and 250 thirty -two gallon containers which are picked up bi- weekly. • Projected 1996 revenues for customer charges, late penalties, and interest income are anticipated to be approximately $700,000.