Commissioners split on county budget; garbage self-haul rates to increase 18 percent
By Matt Pranger
posted 12/07/00
San Juan County Commissioners Darcie Nielsen and John Evans voted for a $30 million 2001 budget Wedenseday, Dec. 6. Commissioner Rhea Miller, concerned about meeting revenue projections, opposed the spending package.
The budget, which includes $800,000 from reserves, is a 2 percent increase over this year's.
Evans was "very optimistic" about the 2001 budget but also wanted to review revenues and expenditures after the first and second quarter.
"The budget reflects the good times are over after this," Nielsen said. A proponent of a county administrator, she said, "Major management restructuring needs to occur. I'm not willing to get into it now. I'll bring it back."
Looming ferry fare increases that may lead to less business in the islands and less sales tax collections, and likely state and federal funding cuts prompted Miller to vote against the package. "I don't think it's fiscally responsible," she said.
County Auditor Si Stephens shared Miller's concerns about future revenue: "2001 may be a very difficult year; 2002 may be an even more difficult year."
If ferry fees increase, Stephens said, "The revenue stream will be curtailed and will force some reorganization."
Debate about solid waste funding and fee increases delayed the budget adoption. Nielsen and Evans resolved the issue by approving the solid waste plan as presented by county Public Works Director Tom Huse. Under that plan, self-haul rates will be increasing 15 percent plus an additional 3 percent until operating debt is paid off.
The county's solid waste division will also prepare a cost of service analysis for Town of Friday Harbor and franchise haulers -- primarily San Juan Sanitation -- based on a 5 percent increase. Disposal contracts with the county's two biggest garbage customers will be negotiated early next year.
Miller sought an across-the-board rate hike.
"Let me make myself perfectly clear," Miller said, "I think the solid waste budget is categorically unfair to the self-hauler, fiscally irresponsible and a threat to recycling in this county."
Disparity between tipping fees paid by the Town of Friday Harbor, franchise haulers and self haulers also concerned Neil Hanson of Lopez Island. "Advocacy for the self-hauler is conspicuously absent from the process," he told his fellow members of the county Solid Waste Advisory Committee on Monday, Dec. 4.
According to Hanson, using the standard of a 34-gallon can containing 40 pounds of trash, tipping fees currently break down as:
- $2.67 -- Town of Friday Harbor.
- $2.92 -- Franchise/commercial haulers.
- $4.25 -- Self-haulers.
Hanson, speaking as a SWAC member representing the interests of self-haulers, worries that self haulers will have to make up any shortfall in revenue after the rates are set for the other two.
He recommends rather than increasing the rates, the BOCC raise the excise tax -- which self-haulers and franchise/commercial haulers pay -- instead. "It would lead to long-term stability and would also lend greater transparency to setting up rates."
Because excise tax increases require public hearings, Hanson believes the public would have greater awareness of the rate structure and more opportunities to comment on the rates.
Too high an increase might result in franchise/commercial haulers taking garbage directly to the mainland, Huse said. If that happened, conceivably the county's transfer stations would generate considerably less revenue. "You're making the wrong decision if you make a 15 percent across-the-board increase," he told commissioners on Dec. 4, 2000.
The rate increase to the town and franchise haulers must be justified in service costs, Evans said, concurring with Huse. "We can't arbitrially increase their rate."
San Juan Sanitation would pass any fee increases on to customers. "I'm not interested in disenfranchising one-third of the constituents on San Juan Island," Nielsen said. She suggested adjusting the solid waste division's budget after the new rates with the town and San Juan Sanitation were negotiated.
Even if franchise hauler's rates increased, incentive -- an excise tax on their operations in San Juan County -- remains for them to continue dumping their garbage at island transfer stations, according to Miller.
Under the 2001 budget, recycling costs will be paid through tipping fees at the transfer stations.
"Waste disposal fees need to cover recycling," Nielsen said.
Miller also wanted recycling incorporated in tipping charges.
Evans preferred a quarterly-adjusted gate fee to help fund recycling. That would help fund the greater volume of recycling that occurs when garbage fees increase and fluctuations in recycled material markets, he said.
"Unless we have a mechanism like the gate fee, we'll be forever chasing our tails on this issue," Evans said.
Alices, restaurants and all others face garbage fee hike
posted 11/23/00
If Arlo and the rest of Alice's Restaurant gang show up at island solid waste transfer stations with a red VW Microbus full of garbage next year, they'll avoid Officer Odie but probably won't dodge an increase in fees. The county Solid Waste Advisory Committee (SWAC) is recommending the county increase the garbage disposal rate by 15 percent and a 3 percent surcharge until $365,000 of operating debt is paid off.
During their Nov. 20, 2000 meeting, SWAC members also endorsed changing the $2 minimum charge for garbage taken to transfer stations to the same fee charged for a 32-gallon can. If the increases are adopted by county commissioners, anyone delivering garbage to the transfer stations on Lopez, Orcas and San Juan islands would pay at least $5.
Public Works Director Tom Huse was told to prepare an analysis of improving the solid waste transfer sites by: 1. Increasing staff hours; or 2. Additional capital improvements.
SWAC members continued a debate on whether ferrous metals should be recycled. Currently the county $110 per ton to dispose -- double the price of disposing of garbage. Most counties do not accept ferrous metals, instead directing people scrap yards, Huse said.
The ferrous metal discussion led to questions about how much county residents were willing to fund recycling programs. Committee members discussed holding community meetings or sending out questionnaires to determine to what extent islanders will subsidize recycling.
Today’s county budget hearing won’t include looming, hefty garbage disposal fee hikes
By Matt Pranger
posted 11/14/00
Taxpayers will be commenting on San Juan County's multi-million-dollar 2001 budget during a public hearing from 1 to 4 p.m. today (Nov. 14, 2000) in the County Courthouse, but they won’t be able to comment on an impending "dramatic" increase of a fee they pay regularly.
Rhea Miller, chair of the Board of County Commissioners, yesterday said the county commissioners "do believe there needs to be a dramatic rise" in solid waste disposal rates.
Miller was upset about that the Solid Waste Division "unilaterally spent $70,000 over its budget when it was already a quarter of a million dollars in debt." Commissioners last week approved a $225,000 emergency appropriation for the Solid Waste Division.
Public Works Director Tom Huse, who was hired after the 1999 budget was set, told county commissioners some calculations in the 1999 solid waste budget did not appear "valid." He was completing his department’s budget yesterday, but it will not include any specific garbage disposal rates for 2001. At the direction of the county commissioners Miller, John Evans and Darcie Nielsen, those are currently being discussed by the Solid Waste Advisory Committee (SWAC).
The mostly-volunteer committee is undertaking a messy task. San Juan County pays almost double for disposing garbage than any other county in the state. The county’s solid waste program finished with a positive cash balance only once in the past six years and is projected to complete this year with a deficit as high as $365,000. Paying the program’s existing debt and making it self-sustaining would require up to a 30 percent increase in dumping fees at transfer stations on Lopez, Orcas and San Juan islands. Purchasing the San Juan Island transfer station property from the Town of Friday and making improvements at the Orcas transfer station -- considered much needed -- could add an additional $1.5 million of debt.
"We have a very serious problem and we’ve been given the responsibility to solve it," Bruce Moorad , Solid Waste Advisory Committee chair, said during a SWAC meeting Nov. 13, 2000.
SWAC members did not come up with an overall solution, but concentrated their discussion on a general rate increase of about 25 percent. Committee members want more information before making a recommendation to county commissioners; specifically how the Town of Friday Harbor, Roche Harbor Resort and private hauler San Juan Sanitation would respond to a rate hike. Too great a hike might drive away them, which would lead to less revenue. The SWAC meeting was continued to noon Monday, Nov. 2, 2000 in the County Courthouse.
One rate increase was proposed by SWAC, though. Members voted unanimously for upping the appliance dumping fee to the amount that would cover the true cost of their disposal. At Miller’s suggestion, the committee is also recommending establishing a voucher system for people who could not afford to dispose of their appliances. Such a waiver would discourage the littering of appliances, including dangerous old refrigerators.
The SWAC members agreed to increase the construction and demolition waste disposal fee, which currently is less than half of standard commercial garbage. However, they did not agree on how much that bump should be. Miller noted revenues from an increase in construction material disposal fees might be applied to the solid waste program’s debt.
"The real problem here is what to do about the debt," Huse said.
He pointed out a 5 percent surcharge – basically a gate fee – would pay back the program’s existing debt in four or five years. Such a fee would "sunset" after the debt was paid.
SWAC members also briefly addressed the solid waste division’s consistent money loser – recycling. For most materials, it is cheaper for the county to dispose of many items currently being recycled.
"The more successful we are at recycling, the more it costs us," said SWAC member George Post.
The county’s revenues from recycling are growing. An estimated $42,640 will be generated from recycling this year, up from a $4,663 deficit last year. However, even with the additional revenue the county will spend about $265,385 on providing one of the most comprehensive programs in the state. Huse expects the net cost for recycling to continue to rise, but growing demand for mixed paper will limit the increase somewhat.
Huse and Commissioner Evans questioned whether the recycling program should be scaled back and some of the material currently being recycled just be disposed in the normal waste stream. "Darcie and I think the public is adamantly opposed to that," Miller said.
Evans also is a strong proponent for the solid waste system to be "self-sustaining."
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