City trash fees to increase in July
Council caps annual hikes at 3 percent
Starting July 1, Yuma residents and businesses will see an increase in their trash pickup bill.
The rate increase will bring the monthly charge for two pickups a week, one for disposable garbage and one for recyclables, for residential customers to $12.75 starting in July and $14.25 in July 2019.
Then, beginning with fiscal year 2020-21, the city will make cost-of-living adjustments as part of the annual budget process. Increases are capped at 3 percent per year.
Initially the staff recommendation called for annual increases of 3 percent, but the City Council voted unanimously on March 21 to change the language to “a maximum of the current Consumer Price Index or 3 percent per annum, whichever is less.”
Residents pay two fees for trash pickups: an environmental solid waste fee and a resident refuse collection and disposal fee. The environmental fee will increase from $6.25 to $6.75 per month. In July 2019, the environmental fee will increase to $7.25 per month.
The residential fee will increase from $5 per month to $6 per month starting July 1, and in July 2019, the residential fee will increase to $7 per month.
The monthly cost for commercial customers will increase to $12 in July and $14 in 2019 for a 90-gallon container for twice-weekly pickups. For a 300-gallon container, the commercial monthly cost will increase to $36 on July 1 and $41.95 in 2019, also for twice-weekly pickups.
This would be the first increase in eight years. If the rate had not been adjusted this year, the city would have started operating the solid waste service at a deficit of $250,000 per year due to increasing costs, according to a consultant.
Currently the cost of the service is $3.9 million. The cost is projected to rise to $4.2 million in 2019 and $4.7 million in 2020.
In July, the city hired Willdan Financial Services to conduct a rate study and financial analysis of the city’s trash fees. Willdan reported its findings to the council at a Feb. 20 work session. The study noted that the city’s costs have been increasing due to higher landfill tipping fees and operating costs, resulting in costs exceeding revenues for the last two years.
The consultant projected that this trend would continue and recommended increasing the fees.
With this year’s increase, the solid waste fund will still be in the negative. However, after the 2019 increase, the fees should cover operating costs.
Dan Jackson, vice president of Willdan Financial Services, said that the city’s goal is not to make a profit but for revenues to cover all the costs of providing service. He noted that landfill tipping fees have been increasing 5-6 percent per year. Landfill costs represent 30 percent of city’s sanitation budget.
Jackson said the rate increase will eliminate the operating deficit, cover rising landfill costs and fund truck replacements and vehicle purchases for new routes due to expected growth.
Currently the solid waste fees for residential custom- ers is $11.25 a month. The monthly fees for commercial customers is $10 for a 90-gallon container and $30 for a 300-gallon container.
A comparison of fees showed that Yuma is at the bottom for twice-weekly pickups both in Yuma County and Arizona. Wellton charges $16.12, Somerton $16.33 and San Luis $18.34. Private contractors charge between $21.66 and $26.25. The state average is $19.69.
The city is seeing an increase in the number of residential accounts, with 500 new accounts added in 2016-17.
Public Works Director Joel Olea said projected growth will likely mean new collection routes in 2020 and 2023, the addition of new staff and recycling programs in 2019, GPS for collection trucks in 2019 and a dedicated facility for the hazardous household waste program in 2020.
He noted that the main reason why the city has been able to hold the fee steady for eight years has been the recycling program which started in 2013.
Jackson acknowledged that some customers might protest the rate increase. “I’ve never had a ratepayer say thank you for raising the rates,” he said, but he’s had people say, “I don’t like it, but I understand why it needs to be done and it will make us a better community.”
“We hate coming to coun- cil saying we have to raise our rates, but we do, we need to raise our rates,” City Administration Greg Wilkinson said during the February work session.
At that time, Deputy Mayor Gary Knight said that the city’s expenses and revenues should be equal. “We need to have enough to put in our equipment (replacement) fund, not take from general fund or anywhere else. No one likes to raise rates, but (customers) need to pay what its costs.”
Knight said he also prefers annual cost-of -living increases vs. a flat rate of 3 percent. The annual rate increases could be up to 3 percent, meaning that it could also be zero, Wilkinson noted.