3.2. SR 11-29-1993 - Laserfiche WebLink

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. . . GARBAGE COLLECTION PROGRAM Provides for the total administration, operation and maintenance of the City garbage collection program. 1994 BUDGET COMPARED WITH 1993 BUDGET The City began organized garbage collection services in November, 1990. In 1993, the Elk River Municipal Utilities took over the responsibility for the garbage billing process. The single largest item in the Garbage Collection Program budget is the fee paid to the garbage haulers. In 1994, the projection for this fee is $696,000. This is the same amount as in the 1993 budget and the amount has not increased due to this projection being high in 1993. This expenditure represents 97% of the total budget in 1994. The 1994 Garbage Collection Program budget is proposed in the amount of $716,400. The City has to pay a sales tax on the garbage services, but no sales tax amount shows up in the budget, as this is a direct expense that is paid to the State. In 1994, the customer charges will be slightly under $700,000. This is more than the 1993 estimate due to an increase in the number of households in the community, a possible increase in the garbage tipping fee, a possible increase due to inflation, and may be more costs for additions to the recycling program. In 1992, the Garbage Collection Program showed a net loss (approximately $16,000). This is due to the City subsidizing the 32 gallon bi-weekly pick up service and due to the City subsidizing the plastics recycling program. It is estimated that the City will lose a similar amount in 1993. It is projected that the deficit in 1994 will be less than what was experienced in 1992 and what is projected in 1993, due to lower administration charges associated with the Utilities taking over the billing process. The Utilities department currently collects fees, passes the money on to City, which then pays the garbage haulers for the collection of approximately 2,550 ninety gallon containers, 425 thirty-two gallon containers which are picked up weekly and 250 thirty-two gallon containers that are picked up biweekly. Projected 1994 revenues for customer charges, late penalties, and interest income are anticipated to be slightly less than $700,000. This will be sufficient to cover the proposed 1994 expenditures only if the hauler contract estimate of $696,000 is slightly higher than the actual fees.