Regular 5.A.
Regular City Council Meeting
- Meeting Date:
- 06/11/2012
- TITLE
- Public Hearing and First Reading Ordinance to Amend City Code Article 21 for the Solid Waste Division
- PRESENTED BY:
- David Mumford
- Department:
- Public Works
Presentation:
Information
PROBLEM/ISSUE STATEMENT
Article 21 of the Billings Montana City Code addresses the method of billing for the cost of collecting and disposing of refuse. At a work session on March 5, 2012, Staff presented a proposed change to the method of billing for solid waste collections from being assessed against real property with property taxes to being billed monthly on the water and wastewater utility bills. Reasons for the proposed change include:
• To provide a consistent monthly cash flow for the Solid Waste Division and the ability to reduce operating reserves by more than $1.5 million. It would also eliminate the need for a rate increase in FY 13.
• Produce increased efficiency in the Public Works Department by consolidating the utility billing functions and providing cost-sharing of mailing services and postage expenses, as well as staff time.
• Provide greater transparency to the Public by showing the cost of service on a statement on a monthly basis.
• Eliminate the misperception that some members of the Public have that the solid waste assessment is a tax rather than a charge for a specific service.
The proposed ordinance amends City Code to provide the option to bill for the costs of refuse collections and disposal with the monthly utility bills. If adopted, the change in billing methodology will be effective July 1, 2012 and customers will first see the change beginning with the August utility bills.
• To provide a consistent monthly cash flow for the Solid Waste Division and the ability to reduce operating reserves by more than $1.5 million. It would also eliminate the need for a rate increase in FY 13.
• Produce increased efficiency in the Public Works Department by consolidating the utility billing functions and providing cost-sharing of mailing services and postage expenses, as well as staff time.
• Provide greater transparency to the Public by showing the cost of service on a statement on a monthly basis.
• Eliminate the misperception that some members of the Public have that the solid waste assessment is a tax rather than a charge for a specific service.
The proposed ordinance amends City Code to provide the option to bill for the costs of refuse collections and disposal with the monthly utility bills. If adopted, the change in billing methodology will be effective July 1, 2012 and customers will first see the change beginning with the August utility bills.
ALTERNATIVES ANALYZED
The Council must hold a public hearing and then may approve the ordinance revising Article 21 of the Billings Montana City Code to provide the option to bill for the cost of solid waste collection monthly on the utility bills; or not approve the ordinance. If Council does not approve the ordinance, the costs of collection will continue to be assessed against property on the property tax statements. An amended resolution to establish Solid Waste fees for FY 13 and increase the rates will need to be considered at a future City Council meeting.
FINANCIAL IMPACT
If the attached ordinance is adopted, there will be no increase in Solid Waste rates and fees for FY 13 and no significant financial impact.
RECOMMENDATION
Staff recommends that a public hearing be held and City Council approve the proposed ordinance amending Article 21 of the Billings Montana City Code for changes in the Solid Waste Billing methodology.