4B, Ordinance 2009-013 - 2010 Fee Schedule

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The first and primary reason for the increase in the recycling fee is because the 2009 recycling fee was set lower than the base cost of the recycling program. When the 2009 household fee was set, the City anticipated receiving sufficient revenue share to offset the lower per household fee. As discussed earlier in 2009, the recycling market decreased significantly with the recession and revenue share decreased to zero for several months. The recycling fund balance was used to compensate for the loss in revenue share. In January 2009, the recycling fund balance was approximately $39,000. At the end of 2009, the fund balance is anticipated to have decreased to approximately $18,500. The proposed 2010 fee would cover the full cost of the recycling program. The second reason is that personnel service charges increased from $10,450 to $13,403 annually, which is primarily due to an adjustment to apply the actual personnel cost for operating the recycling program to the recycling program. The third reason is that the administrative costs associated with recycling also increased from $1,734 to $2,897. Administrative costs are applied to all enterprise funds, which applies overhead costs to the recycling program. In addition to the increase in the annual per household recycling fee, Staff is proposing a fee of $1.40 for each housing unit that is not part of the curbside recycling program, which includes Cottage Villas, Hunter's Park Condos, Parkshore Apartments, and Arden Manor. Although these properties contract separately for regular recycling services, they still have access to the community cleanup event. This fee would cover their portion of the community cleanup event. Currently, only those households that pay a recycling fee are paying towards the community clean-up events, even though all households in the City have the opportunity to utilize them. The proposed fee schedule would allocate a portion of the cost of the community clean-up events to all households equally. The proposed recycling fee of $40.65 includes the cost of the community clean-up events. Recommendation Motion by the City Council to approve Ordinance 2009-013 and Summary Ordinance 2009-013 setting the 2010 Fee Schedule. City Council Meeting \\Metro-inet\ardenhills\Admin\Council\Agendas & Packet Information\2009\12-14-09 Regular\Packet Information\4B 2010 Fee Schedule Memo.doc Page 3 of 3