REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Lori Ann Farrell Harrison, Interim City Manager
PREPARED BY: Travis K. Hopkins, PE, Director of Public Works
Subject:
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Receive and File Residential and Commercial Refuse Collection Rates Effective July 1, 2019 and Appropriate $175,000 from FY18/19 Refuse Fund revenue for FY18/19 Operating Expenditures
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Statement of Issue:
The Refuse Collection and Disposal Services Franchise Agreement (Agreement) with Rainbow/Republic Services (Rainbow) requires an annual compensation review and adjustment of residential and commercial rates based on a formula calculation. The formula provides for a 3.47% increase to both residential and commercial compensation rates. The increase, when combined with the incremental increases and pass-through adjustments ratified and adopted with Resolution 2017-26 on June 5, 2017 results in a residential rate increase of $0.76 per residence per month and a new Exhibit A Commercial Rate schedule effective July 1, 2019.
Due to the City's annual budget development schedule, the FY 2018-19 Refuse Fund operating budget was adopted based on the FY 2017-18 residential trash rate. An additional appropriation of $175,000 is necessary to fully fund the current fiscal year pass-through expense.
Financial Impact:
The residential rate increase is projected to provide additional Refuse Fund revenue of approximately $434,000 per year to be deposited to account 50400504.47705. Approximately $320,000 of the additional Refuse Fund revenue is pass-through revenue payable to Rainbow as compensation for residential collection and recycling services. The commercial rate increase is projected to provide additional General Fund Franchise Fee revenue of approximately $35,000 per year to be deposited to account 10000100.41240.
Funds in the amount of $175,000 are available in Refuse Fund revenue account number 50400504.47705, Refuse Charges, to fund FY 2...
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