HomeMy WebLinkAboutIR 9539 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9539
To the Mayor and Members of the City Council January 29, 2013
`�` Page 1 of 2
r
SUBJECT: SOLID WASTE RATES AND SOLID WASTE ENTERPRISE FUND
rF BALANCE
At the January 8, 2013 Pre-Council presentation on the Comprehensive Solid Waste Plan and
Contract Recommendations, City Council requested information on the rates charged to residents
for sanitation services, the current Solid Waste Enterprise Fund balance and the value of the solid
waste contracts.
Solid waste rates charged to residents are based on the size of garbage cart/volume that can be
set out. It is important to note that these rates cover all solid waste services provided by the City,
not just curbside collections. Rates charged to residents have not changed since 2006.
Residential Rates
2002 $13.75 <Rate prior to current program (bags/no carts)
32 Gallon 64 Gallon 96 Gallon
2003 $8.00 $13.00 $18.00
2004 $11.45 $16.45 $21.45 < Rate increase due to changes in the bulk&yard
waste collections program
2005 $11.45 $16.45 $21.45
2006 $12.75 $17.75 $22.75 < Rate increase to ensure SW budget balanced
2007 $12.75 $17.75 $22.75
2008 $12.75 $17.75 $22.75
2009 $12.75 $17.75 $22.75
2010 $12.75 $17.75 $22.75
2011 $12.75 $17.75 $22.75
2012 $12.75 $17.75 $22.75
2013 $12.75 $17.75 $22.75
The current Solid Waste Enterprise Fund Cash Balance as of 9/30/12 is $31,603,502. After
withholding the reserve requirement, there is approximately $20,296,000 available. Over the next
five fiscal years, capital costs and other expenses (i.e., the construction of two new drop-off
stations and improvements to the city call center), will draw down the fund balance significantly.
In addition, the fund has been operating at a deficit (using fund balance) and the strategy has
been to use the fund balance until 2016 so that there would be a full ten years since the last rate
increase. In 2016, it is anticipated that the fund will be depleted to the minimum reserve balance
and a rate adjustment will be required. Table "A" is a budget trend chart for the past 10 years and
moving forward.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9539
To the Mayor and Members of the City Council January 29, 2013
Page 2 of 2
r
SUBJECT: SOLID WASTE RATES AND SOLID WASTE ENTERPRISE FUND
rF BALANCE
The values of the five solid waste contracts as budgeted for FY 2013 are:
• Curbside collections (Waste Management) - $29,940,467
• Recycle Processing (Recycle America a WM company) - ($1,713,155) net to City
• Drop off Station Hauling (Republic Services) - $406,725
• C&D Waste Disposal and Yard Waste Processing (IESI) - $1,050,262
• Toter Cart's Purchase/Repair/Delivery- $1,130,000
For more information, please contact Code Compliance Director Brandon Bennett (6322).
Tom Higgins
City Manager
Table "A"
REDUCTION IN R SID NTIALCONTRACTCOSTSIN FY2013
AND NO RATE CHANGE
$70,000,000
New cart system °°°° Drop-Off
$60,000,000 starts in 2003 ; Stations 4 &
�" . J
" - 5 Capital and
$50,000,000 000 " „.” " Y Operating
Expenses
$40,000,000 . ,
w„ Revenues
$30,000,000 A
Exlpenditu ire s
$20,000,000 „
$10,000,000
$0
FY2002FY2003FY2004FY20 5FY2006FY2007FY2008FY 09FY201OFY2011FY2012FY 2013 2.014FY2015FY2016FY2017
City Council changes Citize n Drop-Of Citizen Drop-Of Approximately $1 1 Approximately
system to include Stations 1&2 Station 3 million added to Solid $2.1 Million
monthly bulk and Capital and Capital and Waste Fund for Litter contribution to
weekly yard waste Operating Operating Crews and to sustain ERP
collections which Expenses Expenses funding for solid waste
requires more trucks enforcement by Code
and staff Enforcement Officers.
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS