Springfield Trash Fee Presentation 04.26.2012

8/2/2019 Springfield Trash Fee Presentation 04.26.2012

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Curb-ITFor a Sustainable

Springfield

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Agenda

Trash Reduction Mandate Al Chwalek, DPW Director

Financial Implications Lee Erdmann, Chief

Administrative & Financial Officer

Services to Residents

Questions & Answers

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Why is the city proposing asmaller trash barrel?

MassDEP continues to implement a wide range of programinitiatives to reduce waste and increase recycling andcomposting, while also ensuring that remaining waste ismanaged and disposed of safely.

In the MassDEPsMaster Plan, the primary quantitativegoal is to reduce the amount of annual waste disposal by30% from 2008 to 2020.

In 2008, Springfields yearly tonnage was 48,788 tons. A

30% reduction is 14,636 tons reduced. In 2020, our disposed tons of trash must be 34,152 tons per

year.

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How do we get to 30% by 2020

The 1st

step is to reduce the size cart and recyclemore. With the 65 gallon cart and weekly

recycling, the tonnage will be reduced 4,000 tons

or 10% the first 1-2 years. The second step is identify situations where Solid

Waste services should be cut.

The 3rd step is to start a food waste compostingprogram. The city is currently working with DEP

on a grant to start this program in 2-3 years.

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Complete Cost Of Solid WasteServices

Including our trash,recycling and yardwaste, the City spendsapproximately $10

million on collectionand disposal. Thatequates to $227.55 per

household per year.

$227.55

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Current Costs

$10 million operation Cost of service ($227.55 per household)

Trash removal cost and disposal $108.98

Recycling collection labor cost $28.13

Yard Waste collection labor cost $25.77

Landfill operational costs $5.70

Fleet maintenance costs $30.25 Administrative $28.72

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What Has the City Done toControl Solid Waste Cost?

Implemented single stream recycling Diverts thousands of tons from the landfill every year

Implemented automated and semi-

automated collections Reduced workers compensations costs

Renegotiated with the landfill operator for a

lower fee The dumping fee will be reduced by about $10/ton in 2014.

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What Has the City Done toControl Solid Waste Cost?

Expanded the landfill at Bondi Island Added capacity so rubbish doesnt have to transported

Renegotiated the Recycling Contract Stabilized and increased recycling revenues

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Summary of the currentSolid Waste Services

Weekly rubbish collection with 96 gallon carts Bi-Weekly recycling collection with 96 galloncarts

Bi-Weekly curbside yard waste collection (April-

December) Year round yard waste drop off at Bondi Island

Landfill

Curbside bulk collection Five annual Household Hazardous WasteCollections

Two annual Electronic Waste Drop-off events10


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What is going to change? Rubbish will now be collected in new 65 gallon

carts. Recycling will be collected weekly with the

current blue 96 gallon carts.

Residents will have the option to keep the oldgreen 96 gallon cart for yard waste collection.

Residents will still be able to place additional bags

of yard waste out for pick-up. The Trash Fee will increase by $10 to $29 next

year.

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REASONS WHY THE CITY OF SPRINGFIELD NEEDS TO KEEP

THE TRASH FEE

Continued cutbacks of state and local aid five years in a row impacting the Citys ability to continue

providing services such as police, fire, DPW, Parks, Libraries and other municipal departments

Department of Environmental Protection mandate requiring the City of Springfield to cut down trash

foot bring by 30% by 2020 Landfills need to be capped. The Springfield City Council just recently voted recently to approve

funding

Mayor Sarno was able to reduce the trash fee from $90 to $75 due in large part to the single stream

recycling efforts

Residents will receive 65 gallon barrels. The City needs to purchase the new barrels due to the age

of the existing ones Seniors will continue to pay a $50 yearly trash fee there will be no increase

The Citys Law Department was able to reach an agreement with Covanta on the tipping and tonnage

fee bringing it below $70/ton by 2014 saving the City $8-$9

The City will offer weekly recycling pickup

The City will allow residents to keep the existing 95 gallon barrel for yard waste saving residents

from purchasing brown paper bags

Bulk pickup will state at $8

The Citys Department of Public Works will look at discontinuing trash pickup at large apartment

complexes

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Financial Implications Overall City Finances

FY13 Revenue Assumptions

State Aid No increases in State Aid

Property Taxes Significant decline

Other Local Receipts Collections level to FY12 budgeted

Reserves Declining use

FY13 Spending Assumptions

Departmental Growth Department budget submissions were $15million or 13% greater than FY12 budget!

Scheduled growth for pensions, debt service

Base Case Gap of MYFP = $27.1 million

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FY13 FY13 Multi-YearFinancial Forecast

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Financial Implications How Trash Services Are Paid For

City has a separate fund called the Trash Fee Enterprise Fund.

All revenue associated with trash services (trash fee, recycling rebates,

grants, etc.) are deposited into this fund (~$3.8M annually)

All costs associated with trash service (trash pick-up, recycling pick-

up, bulk pick-up, landfill costs, etc) are paid from this fund (~ $10M

annually)

The delta between the costs and revenue ($10M in costs - $3.8M in

revenue) is made up by a General Fund Supplement. This means that

revenue that supports other City programs and services such as Police,

Fire, Health and Human Services must be diverted to support trash

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Financial Implications

Why a Fee Change HelpsTHE GOAL OF CHANGING THE FEE IS TO MOVE TOWARD A SELF SUFFICIENTTRASH SYSTEM THAT IS ENVIRONMENTALLY AND FISCALLY SUSTAINABLE

TRASH FEE INCREASE OPTIONS Option 1: FY13 FY17 $29 ANNUAL INCREASES = FY13 EST. REVENUE INCREASE OF $1.2 MIL (self-supporting in 5

years)

Option 2: FY13 FY17 $10 ANNUAL INCREASES = FY13 EST. REVENUE INCREASE OF $450K (self supporting in 10+years; spreads costs to the residents over a longer period of time)

Option 3: FY13 $10 INCREASE / FY14-FY17 $5 ANNUAL INCREASES = FY13 EST. REVENUE INCREASE OF $450K(Maintains the General Fund support relatively level)

PROS

Option 1: Self sustaining in 5 years Option 2: Self sustaining in 10+ years; spreads the costs to residents over time Option 3: Minimum increases needed to maintain GF supplement and meet our goals of environmentally and fiscally sustainable The RFID system will allow GPS Tracking of Barrels, Productivity Reports and Accurate Barrel counts Change to new barrels size will decrease tonnage by about 4,000 tons the first year. Estimated Tipping savings of about 10% or $355K because in all options the bin size is reduced to 65 gallons Combination of Curb It and weekly recycling pick-up will encourage residents to recycle more Opportunity to educate residents on trash and recycling

City will be closer to meeting 30% DEP mandated trash reduction by 2020

CONS Annual fee increases to residents New trash system will change pick up days

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2013 2014 2015 2016 2017

FEE INCREASES 85 90 95 100 105

GENERAL FUND SUPPLEMENT 5,297,729 5,090,466 5,047,880 5,010,254 4,977,726

REVENUE 4,528,395 4,751,830 4,975,265 5,198,700 5,422,135

EXPENSES 9,826,124 9,842,296 10,023,145 10,208,954 10,399,861

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Option 3: CURB IT W / FY13 $10 INCREASE,

FY14 - FY17 $5 ANNUAL INCREASE

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Summary of Solid WasteServices to Residents

Proposed- Weekly rubbish collection with 65 gallon carts.

Proposed- Weekly recycling collection with 96 gallon carts.

Proposed- 96 gallon carts for Bi-weekly yard waste collection. Residents willstill be able to place additional bags of yard waste out for pick-up.

Year round yard waste drop off at Bondi Island Landfill

Curbside bulk collection program (500 tons per year)

Five annual Household Hazardous Waste Collections (5,000 gallons per year)

Two annual Electronic Waste Drop-off events (100 tons per year)

Continuation of current discounts at current amount

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Questions & Answers

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Documents

Springfield Trash Fee Presentation 04.26.2012