CR 05-051 Proposed Rfuse Rate Increase
November 10, 2005
Council Report 2005-151
PROPOSED REFUSE RATE INCREASES
Proposed Action
Staff recommends adoption of the following: Move to adopt Resolution No. 2005-112 aPDroving increases in refuse rates effective
on billings rendered from and after January L 2006.
Approval ofthis motion will increase the yard waste fee from $1.00 per bag to $2.00 per bag and the brush pick-up fees from $5.00
to $8.00 for up to 5 cubic yards ofbrush, from $15.00 to $20.00 for 5 cubic yards to 17 cubic yards of brush and no change in the
rates for over 17 cubic yards ofbrush up to a truck load.
Overview
Currently the cost of the yard waste and brush pick-up programs are being subsidized by the rates charged for the disposal program.
The rate increases proposed are intended to help offset a portion of the operating costs of these two programs and relieve the
burden on the disposal program. Increasing the fees will help accomplish this goal and still will remain significantly below rates
charged by private contractors.
CURBSIDE YARD WASTE BAG & BRUSH PICK UP CHARGES
COSTPERYARDINASTEBAG
COST FORS CUBICYAROS OF BRUS H
so,oo
$5.00
$10.00
$15.00
$20.00
525.00
$30.00
$35.00
$40,00
$45.00
$50.00
DOLLARS
L
Il!lCITY OF HOPKINS
OWASTE MANAGEMENT
OBFI
o DICK;S-l
--_..-
Primarv Issues to Consider
_ How will the increased rates affect the residents in the city
. Why is the rate increase recommended
_ What are the goals of the refuse program
Staff Recommendation
Finance recommends approval oftbis motion so that the cost of the yard waste and brush pick-up program funds more ofthe
operating costs of these programs.
SUDDortinl! Information
-Resolution 2005-112
oFinancial analysis of Refuse Fund programs
~~~
Christine M. Harkess, CPA, CGFM
Finance Director
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2005-112
REFUSE RATE INCREASES
WHEREAS, the City of Hopkins has established Ordinance No. 98-605, City Code
section 605.04 which defines refuse rates and allows adoption of fees through council resolution,
and,
WHEREAS, it is estimated the present yard waste and brush pick-up refuse rates are not
sufficient to cover operating expenses for the yard waste and brush pick-up programs;
NOW, THEREFORE, be it hereby resolved that the City Council of the City of Hopkins
hereby sets the service charge for the Yard Waste and Brush programs at the following rates to be
paid to the City upon billing therefore as follows:
Yard Waste
$2 per bag
Brush Pick Up
up to 5 cubic yards
5 cubic yards to 17 cubic yards
18 cubic yards up to a truck load
$ 8.00
$20.00
$30.00 (no change)
EFFECTIVE DATE: The provisions of this resolution shaH take effect and be in force m
connection with aH billings rendered hereunder from and after January I, 2006.
Adopted by the City Council of the City of Hopkins, Minnesota, this 15th day of November, 2005.
Eugene J. Maxwell, Mayor
ATTEST:
Terry Obermaier, City Clerk
CITY OF HOPKINS
ANAL VSIS OF NET INCOME
REFUSE FUND
Budget
2006
736,300
Estimated
2005
717,250
2004
626,51
2003
552,702
2002
664,485
2001
634,764
2000
634,771
1999
628,867
1998
646,606
1997
555,513
REFUSE - TOTAL OF ALL PROGRAMS
Total Operating Reveunes
758,502
651,867
654,760
621,344
635,047
642,533
593.444
571,782
579,320
538,901
Total Operating Expenditures
(22,202)
65,383
(28,249)
(68,642)
29,438
(7,769)
31,898
41,327
31,693
57,085
48,179
67,286
6,612
Operating Income (Loss)
57,500
57,500
57,122
33,378
31,619
40,740
38,398
Non-Operating Expenses
Depreciation, transfers
(79.702)
7,883
(85,371
(102,020)
(2,18
(39,667)
9,634
8,906
26,546
(21,786)
Net Income (Loss)
29,000
2,585
215,132
7,286
8,070
2,050
26,154
69,988
0,613
Capital Outlay
Memo
20,000
0,200
8,024
7,357
7,160
2,415
2,307
4,133
4,051
4,150
YARD WASTE/LEAF COLLECTION
Total Operating Reveunes
90,810
57,453
82,601
77,377
88,186
80,419
65,508
54,562
48,708
33,323
Total Operating Expenditures
(70,810)
(47,253)
(74,577)
(70,020)
(81,026)
(78,004)
(63,20
(50,429)
(44,6S7)
(29,173)
Operating Income (Loss)
Revenues are included with Yard Waste/Leaf Collection Program
2,776
2,307
4,133
4,051
4,150
BRUSH SERVICE
Total Operating Reveunes
81,704
67,901
58,337
53,345
53,420
51,616
63,399
31,673
42,481
42,063
Total Operating Expenditures
81,?04'
67,901
58!-337
53,~45
53,420
48!-840
61,092
27!-540
38!-430
37,913
Income (Loss
582,800
575,050
485,300
418,49
516,733
500,557
507,563
500,560
516,784
418,795
DISPOSAL
Total Operating Reveunes
381,520
351,085
342,796
312,605
328,136
338,349
286,452
337,540
347,628
327,51
Total Operating Expenditures
201,280
223,965
142,504
105,886
88,597
62,20B
221,111
63,020
69,156
91,284
Operating Income (Loss)
2,500
12,500
13,935
2,389
0,420
10,868
9,669
8,486
9,666
9,120
BULK COLLECTION
Total Operating Reveunes
59,309
49,117
42,415
47,832
49,350
45,706
47,2
33,138
32,213
28,814
Total Operating Expenditures
(46,809)
(36,617)
(28,480)
(35,443)
(38,930)
(34,838)
(37,542)
(24,652)
(22,547)
(19.694)
Operating Income (Loss)
21,000
9,500
9,252
14,465
30,172
8,148
2,925
,555
2,054
9,298
11
RECYCLE
Tolal Operating Reveunes
45,159
(24,159)
26,31
(6,811
28,61
(9,359)
30,185
5,720)
5,955
4,217
26,443
(8,295)
30,874
(17,949)
14,869
(3,314)
08,290
3,764
07,190
12,108
Total Operating Expenditures
Operating Income (Loss)
CITY OtlPKINS
ANALYSIS OF REFUSE RATES
Adjusted
Revenues
559,766
563.276
561,012
558.737
559.319
558,406
538.697
581,626
505,126
Billing
Adjustments
(262)
(478)
(198)
(83)
(517)
(244)
(323)
(178)
(321)
Billed
Revenue
560,028
563,754
561,210
558,820
559.836
558,650
539,020
581,804
505,447
Brush
Yard Waste
5.647
8.107
4.942
2.265
2,540
2,545
4,414
4,624
5.375
RATES AND REVENUES
ANALYSIS OF
Carry
Out
,560
1,435
1,260
1.238
1.025
780
703
627
540
Bulk
Pick-up
8,320
9,648
8,881
9.609
10,075
9,900
11,259
12,060
9,432
Recycle,
Yard Waste
81,173
81,195
81,313
81,582
81.803
93,595
96,422
96,372
72,142
Refuse
463,328
463,369
464,814
464,126
464.369
451.830
424,245
465.885
417,730
Additional
Refuse
24
1.977
2,236
228
No. of
Services
2.653
2,760
2,760
2.763
2.194
2,669
2,673
Recycle
Rate
2.25
2.25
2.25
2.25
2.25
2.75
2.75
2.75
2.75
Refuse
Rate
14.45
14.45
1445
14.45
14.45
14.45
14.45
1445
15.90
13.25;
13.25;
13.25:
13.25:
13.25:
13.25:
13.25,
13.25:
14.60:
11.00:
11.00;
11.00;
11.00:
11.00:
11.00:
11.00;
1.00:
2.50:
997
998
1999
2000
200
2002
2003
[REFUSE
2004
2005 through Sept
Refuse rates were increased in 2005