Summary
To: Mayor Gary H. Katica, Commissioners
From: Stefan Massol, Director of Support Services
Date: 9/17/2019
Subject:
Title
Ordinance 526-Amending Fees and Rates
body
______________________________________________________________________
Background and Problem Discussion:
As considered during the setting of the 2020 fiscal year budget, Ordinance 526 amends the fee schedule for solid waste charges and late fees. The increases for solid waste are proposed at 5%. These percentage increases would take effect on September 17, 2019. The increases are requested to maintain revenue sufficiency with the rising costs of expenditures for operating supplies, labor, and capital expenditures.
The proposed increase in solid waste will be on all service charges for residential customers and commercial customers. A full listing of all proposed rates is provided in the attachment. The table below illustrates the current and proposed rates for Single Family, Multifamily (with dumpster) and Commercial without container. Additionally, staff is recommending that Special Pickups requiring the use of more than 10 cubic yards be billed at the actual cost of collection, at the discretion of the Town Manager.
|
Charge Type |
Current |
19/20 |
|
Single Family |
$ 35.09 |
$ 36.85 |
|
Multifamily (with dumpster) |
$ 13.30 |
$ 13.97 |
|
Commercial w/o Container |
$ 30.22 |
$ 31.73 |
Body
In addition to the increases in monthly service charges, staff is proposing a monthly maximum to the late fee charge of $300 per month. The late fee charge is established as the greater of $10 or 8% of the total outstanding amount. Managing account delinquency and water turn off takes a sizeable amount of staff time and extra resources. It is important that the monthly penalty for delinquent accounts is significant so that customers are reminded to pay their bill promptly. It is also important that the penalty not reach excessive levels for each month so that the late fee balance represents an amount the Town is reasonably confident it will collect.
Lastly, staff proposes that future fees and rates be established by Resolution, rather than by Ordinance, which would save the town on expenses related to codification and advertising.
Previous Commission Action: The Commission approved one-time rate increases in 2017 related to the FY 2016-17 budget, which is the last time that any rate increases have occurred. This item was approved on first reading on August 20, 2019.
Recommendation: Staff recommends the rate increases as proposed.
Proposed Motion: Move approval of Ordinance 526 as proposed (or amended), amending the fees and rates on second reading.