CR 88-213 Establishing Garbage Rates
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November 9, 1988
Report: 88 - 213
ESTABLISHING GARBAGE RATES FOR 1989
lLopoud Action.
Staff recommends adoption of the following motion: l10ve the First Read!n& of
Ordinance 88- 627. an Ordinance Est6lblishini Garbaie Rates for 1989 and AmendlPI
Sect19n ~05.15 (c) of the 1986 Hopkins Code of Ordinances.
Passage of this ordinance will provide for anticipated increased operating costs for
1989 and provide additional funds for capital outlay.
Qvervie1!.t
As the City has gained experience with the refuse operation, more efficient and
unique solutions to problems were discovered which will hold or reduce costs in the
future. It was felt necessary to establish the quality solutions to provide better
service. Reduced complaints and additional services have resulted. Additional
costs have been in~urred and will continue in order to meet recycling mandates.
An interfund loan of $261,000 was made to secure $275,743 worth of capital items to
start up the City Refuse Automated System. A four year repayment period was
anticipated using cash flow generated by depreciation, a declining interest expense
and some use of fund balance. Operations in 1987 reduced the loan to only $230,000.
Sufficient funds have not been accumulated to reduce the loan for equipment start up
costs as scheduled. In the two years since the service changed only $&1,000 of the
$261.000 loan has been repaid. The original loan was scheduled to be repaid in four
years, when replacement equipment will be needed.
For the refuse fund to become self sufficient and in view of the need for
replacement of equipment starting in 1990, a rate increase is needed beginning
January 1, 1989. This would require a 1989 monthly rate of $11.90, a total increase
of $1. 00 per month (9%), over the present rate of $10.90 per month. This rate
increase is proposed to provide the necessary working capital to become self-
sufficient in the ensuing years.
A survey of current and proposed rates put our proposed rate at the averag~ of other
haulers. Please see attached schedule of rate samplings.
Primary Is~ues to Consider.
o Need for adequate funding of refuse operation to be self sustaining.
o ShO\.11d the tax levy be used to subsidize the refuse operation.
o Are the City of Hopkins rates competitive.
Supporting Information.
o Ordinance 88-627
o Refuse rate comparisions wi.th other Cities
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Y'6hn E. Schedler. Finance rector
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COMPANY
REFUSE RATES
11/08/88
PHONE
RATE
Village &
Waste Mgmt.
Wooctlake
BFI
Waste Tech.
Suburban
Chaska San.
Hillcrest San.
Johnson's San.
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890-1100
11.50 Mtka/90 gal cont. supplied
13.25 Increased middle of 1988
14.00 Increased in July of 1988
479-1967
941-8394
935-6731
11.25 Mtka/90 gal cant. supplied
473-8601
448-2547
438-2555
11. 00
10.00
12.83/poss. increase in April
755-3794
11.00 Anoka-poss. increase in January
11.85 Average
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HENNEPIN COUNTY, MINNESOTA
ORDINANCE NO. 88-627
AN ORDINANCE ESTABLISHING GARBAGE
RATES FOR 1989 AND AMENDING SECTION
605.15 OF THE 1986 HOPKINS CODE OF ORDINANCES
WHEREAS, Landfill fees :.:ontinue to escalate and other
costs are experiencing a n01.mal increase, and
WHEREAS, Additional funds are needed to retire loans
for start up capital equipment,
BE IT ORDAINED by th~ Council of the City of Hopkins as
follows:
I. That section 605.15, Subdivision (e) of the 1986 Hopkins
Code of Ordinances is hereby amefided as follows:
(c)
CHARGES FOR COLLECTION BY CITY:
The following charges for the fQllowi~g ~e~!i~e~
performed by the city shall be charged by and paid
to the City upon billing therefore as follows:
SINGLE FAMILY AND MULTI-FAMILY RESIDENTIAL UNITS,
AND TRAILER COURT
$11. 90 per month per unit
$11.90 per month additional for in-yard
pick up service.
II. That the existing charge for the above locations and
services are hereby repealed.
III. EFFECTIVE DATE: The provisions of this Ordinance shall
take effect and be in force in connection with all
billing rendered hereunder from and after January I,
1989.
First read at a regular meeting of the Council of the City
of Hopkins held on November 15, 1988, and finally read,
approved, adopted and ordered published at a regular meeting
of said Council of said C1ty on December 13, 1988.
JAMES A. GENELLIE
city Clerk
DONALD J. MILBERT
Hayor
JERRE A. MILLER
city Attorney