REPORT TO THE CITY COUNCIL
FROM: BROCK D. BUCHE, PE, PLS, Director
Department of Public Utilities
SUBJECT
Title
Actions pertaining to adopting a five-year plan for residential solid waste service charges in accordance with Proposition 218:
1. HEARING on Proposed Increases to Residential Solid Waste Service Charges in accordance with Proposition 218
2. BILL (for introduction) - Adopting a Five-Year Rate Plan for Residential Solid Waste Service Charges in Accordance with California Constitution Article XIIID
Body
RECOMMENDATION
Staff recommends that the Fresno City Council hold the hearing on Proposed Increases to Residential Solid Waste Service Charges, accept public comment on the rates, accept written protests until the close of the public hearing, and approve the introduction of a bill adopting a five-year residential solid waste service charge plan to update the City's solid waste rates in accordance with California Constitution Article XIIID.
EXECUTIVE SUMMARY
The City of Fresno (City) last adopted a five-year rate plan for residential solid waste services in 2007. The current rate charged for these services became effective September 1, 2009, after implementing four of the five adopted rate adjustments. The current outdated rate structure does not generate sufficient revenue to cover operating costs, and the Solid Waste Management Division (SWMD) of the Department of Public Utilities (DPU) has been operating in a budget deficit since 2012. Consequently, the operating reserve will be depleted by the end of Fiscal Year (FY) 2024, and a rate update is needed to reestablish SWMD's financial health by charging rates for services that generate sufficient revenue to cover operating costs and appropriately fund reserve accounts.
Routinely assessing and evaluating revenue and expenditure projections, and specifically analyzing the rates charged for service is vital to prevent revenue shortfalls that could lead to disruptions or cuts in service. Common ...
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