Item 04 - Sanitation Users Charge Adjustment

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INTRODUCTION The background, scope, and objectives of the Study are described below. BACKGROUND The Sanitation Services Users Charge of $5.35 per month is paid by approximately 92,800 customers on a bi-monthly basis. The City’s current sanitation user charge includes 2 major components: The Roadway Cleaning and Environmental Sanitation Programs play a vital role in maintaining the City's cleanliness and hygiene standards. These programs encompass a wide array of services, including street sweeping, alley and sidewalk cleaning, abandoned item collection, and power washing. Additionally, they ensure compliance with sanitation codes through right-of-way inspections and enforcement activities, as well as the removal of weeds from streets and sidewalks. In fiscal year 2025, the City is projected to incur total expenses of $13.8 million. This budget encompasses several critical allocations, including $775,000 earmarked for one-time capital improvements, $1.1 million for contract maintenance staff to boost sanitation services, and $831,000 for hiring four maintenance workers and three program support employees. Furthermore, a significant ongoing expenditure of $3.0 million is earmarked for the introduction of a new street sweeping contract. This contract is geared towards enhancing service frequency, especially in key arterial and commercial corridors, thereby upholding elevated standards of cleanliness and maintenance. These strategic allocations in FY 2025 are vital in addressing the evolving needs of the City and its residents, fostering a cleaner and more efficient urban environment. Acknowledging the City's challenges is crucial; inflation, economic pressures, and supply chain issues have escalated costs. Remarkably, user charges have remained stagnant since 1996, and in 2019, they were lowered, intensifying the strain on the City's finances. However, despite these hurdles, the additional funds allocated for contractual services and expanding the City's workforce represent investments to elevate current service standards. Increasing the frequency of essential roadway cleaning services will result in quicker response times, benefiting the entire community. In adapting to shifting economic landscapes, these strategic allocations are pivotal, ensuring the City's ability to maintain and enhance its residents' overall quality of life. The City reduced its monthly user charge of $6.47 to $5.35 in 2019 and there have not been any fee increases since 1996. City user charges generate approximately $6.0 million in revenues. Realizing that current revenue is insufficient to fund ongoing costs, the City has chosen SCS to develop a financial management plan and an updated user charge to generate the required revenue while minimizing the impact on City residents. 6