2019 Garbage User Fees
Report recommending an increase in annual garbage user fees to recover the increased costs of collection and disposal services for 2019.
TOWN OF VIEW ROYAL FINANCE & ADMINISTRATION REPORT
TO: Committee of the Whole DATE: April 4, 2019 FROM: D. Christenson, Director of Finance MEETING DATE: April 9, 2019
2019 Garbage User Fees
RECOMMENDATION:
THAT the Committee recommend that a bylaw be prepared to increase the 2019 annual garbage user fees to recover the total cost of providing the service.
CHIEF ADMINISTRATIVE OFFICER’S COMMENTS:
I concur with the recommendation.
BACKGROUND:
The budget for the Town’s garbage collection and disposal services was $505,535 in 2018. The garbage user fee covers the Town’s cost for the garbage collection contract, tipping fees and administration fee. Costs projected for 2019 have increased to $512,516 as follows:
| Cost Component | 2018 Budget | 2019 Budget | % Change |
|---|---|---|---|
| Collection | $285,039 | $290,740 | 2% |
| Disposal | 138,720 | 141,494 | 2% |
| Misc. Supplies | 16,700 | 13,904 | -2% |
| 15% Administration Fee | 65,076 | 66,378 | 2% |
| Total | $505,535 | $512,516 | 1.4% |
In 2018, garbage user fees were $185.00 per dwelling unit with curbside collection and $283.30 per dwelling unit with onsite collection. An increase is required for 2019 as a result of overall cost increases.
The proposed annual rate per dwelling unit is $187.00 for curbside collection and $286.40 for on-site collection. The increase to the annual rate is $2.00 (1.1%) per dwelling unit for curbside collection and an increase of $3.10 (1.1%) for on-site collection.
The garbage user fee is billed on the annual tax notice, mailed mid-May each year.
If approved, a bylaw amendment would be prepared to implement the recommended change in garbage user fees in time for tax notice production. Additionally, a review of the bylaw will be completed to ensure that fees ancillary to this service can be added to property taxes if unpaid, to the extent permitted by legislation.
RECOMMENDATION:
THAT the Committee recommend to Council that a bylaw be prepared to increase the 2019 annual garbage user fees to recover the total cost of providing the service.
SUBMITTED BY: D. Christenson, Director of Finance
REVIEWED BY: K. Anema, Chief Administrative Officer
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