MONROE — Members of the city Finance and Taxation Committee heard from City Administrator Phil Rath during their meeting Tuesday that because of a state grant, the city does not need to raise its rates for garbage removal.
The proposal to increase costs was considered after the city switched from transporting garbage directly to the Janesville landfill through the use of staff and city trucks to a contract with private company Pellitteri Waste Systems of Monona. Monroe Common Council agreed to a seven-year contract with the company during its May 21 meeting.
Rath said that if the city had continued to transport its own waste, costs would have required an immediate increase.
“If we had continued the service ourselves, we would have had to adjust rates up just to maintain services,” Rath said.
Through evaluation of costs and an annual recycling grant of roughly $70,000 from the state, the fees would not need to be increased, he said. Currently, the city operates on a scale of costs associated with the size of the containers owned by a home. They begin at $7.50 per month for a 35 gallon container. A 65 gallon container costs a household $8.50 per month and a 95 gallon container is $9.50 per month.
If the city had continued to transport garbage directly, the cost in 2019 would have exceeded $519,000. Through the plan with Pellitteri, which includes weekly trash collection and bi-monthly recycling, the costs in the first year of the contract are nearly $436,000 and by 2025, the city would pay just over $511,000.
However, after 2019, Pellitteri’s contract costs will be raised and may force a rate increase for residents.
Alderwoman Brooke Bauman, who serves on the committee, asked whether the rates could stay the same even if a fuel surcharge was applied. A term of the contract requires that the city pay additional fees if gas prices were to exceed $3 per gallon. If the cost of gas falls below $2.50 per gallon, the city would be given a credit at a staggered rate. The highest possible refund would be 54 cents if the price of fuel fell to $1 per gallon. Similarly, a surcharge of 54 cents would apply if gas reached $4.45 per gallon.
Rath said that the sale of the garbage trucks previously used by the city to haul trash directly to Janesville would be deposited into the sanitation fund and could offset any of the fuel surcharge costs that may arise.
“It’s good to hear we’ll be able to keep the rate the same for citizens,” Bauman said, noting that a number of residents who had anticipated an increased cost for garbage collection “were not happy about it.”
Bauman also recommended the city “stay on top of it and make gradual increases” to avoid large cost hikes after years of stagnant movement. She pointed to past water rate increases as an example not to follow in the future.
Rath said the city will continue to receive the grant as long as it decides to continue the recycling program, which includes basic education of the public on the practice and an annual report to the state. He said the city would only cease to carry out the program if the state were to end it.
According to a letter sent out to the residents of Monroe, Pellitteri will now be in charge of collecting bulky items and electronics and notified residents that carts must be set out by 6 a.m. They also included a map to show where collection will take place in the Monday through Thursday pick-up schedule. Pellitteri will begin collecting curbside trash Aug. 6. Recycling will begin July 30.