Section 21-229 of the Billings Montana City Code requires that the City Council annually adopt the Solid Waste collection and disposal charges and landfill fees by resolution.  Last year, Public Works staff conducted a cost of service rate study as the existing solid waste rates and fees were no longer adequate to provide for the operation and maintenance and capital investment necessary to continue providing service at the current level.  Two options to increase rates were presented and discussed with Council at that time.  Option 1 increased all rates to the levels needed to adequately cover the cost of service in FY 2015.  Option 2 utilized reserves to phase in the rate increase for residential and drop box/roll off collection over fiscal years 2015, 2016, and 2017.  Council chose Option 2 and FY 2016 will be the second year of the phased in rate increase for residential and drop box/roll off collection.  The proposed rate and fee adjustments also include a 2.5% increase for commercial collection and a 3% rate increase in landfill fees.  Staff is also proposing the implementation of a fee for residential refuse collection that requires a special pickup due to its size or quantity. 

The attached resolution specifies the proposed rates and fees for FY 2016.  A public hearing is required and if the proposed resolution is approved, rates will be effective July 1, 2015.    

The Council must hold a public hearing and then may

• approve the recommended resolution
• approve an amended resolution; or 
• not approve a resolution.  If Council does not approve a resolution, an amended resolution to establish Solid Waste fees for FY 16 will need to be considered at a future City Council meeting.   

The proposed rate and fee adjustments will generate approximately $500,000 of collection revenues and $100,000 of landfill revenues for a total increase to the solid waste fund of $600,000, as well as approximately $30,000 in franchise fees and surcharges for the general fund in fiscal year 2016.

Staff recommends that the City Council conduct a public hearing and approve the proposed resolution adopting collection, disposal, and landfill fees effective July 1, 2015.