5.9. SR 10-13-2003 - Laserfiche WebLink

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TO: FROM: DATE: SUBJECT: Item 5.9. MEMORANDUM Mayor and City Council Stephen Rohlf, Building and Environmental Administrator October 13, 2003 Consider Refuse Service Fees Due to a past tax rebate and a one time grant Sherbttrne County awarded the city for its curbside recycling program, the residential refuse service fund has had a surplus. The city tries to only break-even for this service, so refuse service bills were kept at a lower rate than the actual cost of the service to bring this balance down. Staff correctly calculated that the surplus in the fund balance would be eliminated and an increase in the fee for refuse service would be needed in July of 2003. Last November the Council approved an increase of $1.00 per stop for all can sizes. However, due to miscommunication with Elk River Municipal Utilities (who do the billing), the increase has not yet been added to the refuse service bills. Good accounting practices dictate that the fund balance should equal one month's worth of accounts payable, which is calculated to be approximately $80,000 for the estimated 5,800 users of this service by the end of 2004. Because the July 2003 increase was not implemented, the refuse service fund balance is down to approximately $45,000. Staff's new recommended fees, listed below, results in an increase in the fund balance of approximately $38,000 in the next year. The city's contract with its haulers (BFI and Randy's Sanitation) expires in October of 2004. Staff anticipates the haulers requesting an increase after this current five year contract expires. It is hoped that the refuse service fund balance will be at an amount that it should be by the time the hauler contract expires and it may work out that increase in fees recommended at this time off-sets an expected increase in the rates the haulers request. Staff is recommending the following refuse service rate increases be implemented starting for November's service (note: for comparison, staff has added a column which shows the rates Randy's Sanitation's charges elsewhere in Sherbume Count3, for private refuse service):