CC 02/24/2021 Minutes (Pre-Planning Budget Workshop)

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CASSELBERRY CITY COMMISSION Minutes of February 24, 2021 — Pre -Budget Planning Workshop Page 5 of 9 - Potable Water Capital Projects (FY 2021) - Potable Water Capital Projects (FY 2022) - Wastewater & Reclaimed Water Capital Projects (FY 2021) - Wastewater & Reclaimed Water Capital Projects (FY 2022) - Unfunded Needs - Utilities 6. REVIEW AND GUIDANCE OF SELECT TOPICS A. Residential Solid Waste Pricing Mr. Newlon gave a presentation relating to solid waste pricing which included the following points: - Collection of residential solid waste is a service provided by the City of Casselberry. It is fee for service and billed through utility bills. - All revenues and expenditures connected with the provision of this service are captured and separated into a dedicated special revenue fund. - Revenues are from service charges with a little investment income. Expenditures are generally the costs of collection, tipping fees at the landfill and allocated overhead. - The delivery of service is outsourced to WastePro by way of a piggyback contract with Seminole County. The contract expires December 31, 2027. - WastePro bills the City monthly on a unit basis for the number of homes receiving service at a given time. The cost per unit according to the contract can vary with inflation. Generally, it increases each year. - Both Fund Balance Equity and actual Cash on Hand will become negative in Fiscal Year 2022. - Absent a recurring and growing subsidy from the General Fund it requires that a rate increase for solid waste collection be authorized for the Fund to remain solvent. - Growth in service provision costs under the WastePro contract is very predictable. - Staff recommends that a rate plan be implemented sufficient to carry this program through contract expiration in 2027. - Casselberry charges $18.42 monthly for ordinary solid waste collection service. This price has been in effect since April 1, 2018. Previously the rate had been $18.48 which was established January 1, 2009. - The survey average for monthly service in other area jurisdictions is $20.09. Casselberry is $1.67 or about 9% below the average. - Staff suggests three approaches to price future service. o One increase to cover six years o Two steps with one increase now and one mid -way o Gradual annual increases through the duration Mr. Newlon requested discussion and guidance from the City Commission relating to staff s proposals for an increase in residential waste collection pricing in the City of Casselberry. He explained the approximate rate increase approaches as follows: