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Imposing needed garbage rate hike at one time would bump monthly bills from $34.33 to $55.17
garbage truck
The cost of new — as well as replacement — solid waste trucks are now costing the city $500,00 each.

If you don’t like the proposal to increase Manteca’s residential garbage collection charge to $63.07 a month by 2027, there is an alternative to make it $55.17 instead.

But in order for that to happen, the rate increase that would go into effect in mid-July based on state mandates along with ongoing operational  costs would be  $55.17 and not $47.41.

The City Council — in directing staff to go initially with a $14.08 a month increase from the current $34.33  for the first year — means there will be 7 percent annual rate hikes for the following four years in order to make sure the enterprise account covers all costs from labor to tipping fees to spending $20 million on additional and replacement soldi waste collection trucks.

The alternative rate hike implementation would have a rate upfront that could immediately start addressing starting fund balance issues as well as start replacing vehicles that are nearing the point of replacement sooner than later.

As such, there would not be a projected starting fund deficit of $2,204 in 2024.

Manteca would be also in a position to start replacing existing vehicles now instead of having to wait until 2026.

That doesn’t mean the city won’t be buying new vehicles before then. They will need to do so in order to accommodate growth as well as three collections a week instead of the current two.

Mandated food waste diversions means organic/yard waste green carts that will include food waste as well as recycling will be collected every week instead of every  other week.

The weekly collection of recyclables is expected to substantially cut down on contamination. That, in  turn, will allow the city to sell recyclables to vendors instead of being forced to bury much of what they do collect.

That’s because when people run out of space in their 96-gallon garbage cart they more often than not put garbage in the recycling cart.

The current 67 percent contamination rate makes it cost prohibitive for concerns to sort recyclables from garbage.

The weekly collection will also reduce the potential for food waste sitting for up to two weeks inn the green carts creating odors and other issues.

If Manteca opted to go with a $55.27 monthly rate in July, it would be a 60.7 percent hike initially instead of a 37.6 percent increase.

But unlike the preferred alternative the City Council is moving toward adopting that has 7 percent annual rate hikes in the subsequent four years, the alternate rate proposal has no additional hikes until such time the next five-year rate study is done and implemented.

The bigger rate upfront, though, would mean ratepayers would be out of pocket $105.71 less over the course of five years.

That’s because the gradual rate increase translates to a household spending $355.76 more for the next five year for garbage collection as opposed to $250.08 from having the rate put in place all at once.

The $105.71  essentially reflects the cost of delaying key capital investments such as trucks that keep escalating in price every year.

There is a protest hearing on the rate hikes set for May 16 as required by law.

And if by some chance written protests top 12,400 — more than half of the 24,800 ratepayers the city services — to legally block the rate hike, the city would need to spend the money on solid waste regardless.

Not only are their “fixed costs” such as salaries and benefits of existing personnel that are increasing, but there are state mandates all cities have to implement regardless.

That would mean the city’s general fund would have to take  as much as a $4 million annual hit, if not higher.

That would effectively decimate municipal services to a large degree.

The new rates expected to go into effect as early as July 16 coincides with all residential customers going to 96  gallon carts. That will take the current $34.33 charge for a 96 gallon cart up $13.08 to $47.41 a month.

Then in the next four years:
*On Jan. 1, 2024, the rate will go up $3.51 to $50.92.

*On Jan. 1, 2025, the rate will go up $3.76 to $54.68.

*On Jan. 1, 2026, the rate will go up $4.04 to $58.72.

*On Jan. 1, 2036, the rate will go up $4.35 to $63.07.

The rate for the basic roll off box pull for commercial accounts is now $656.44 a month.

It will go to $762.69 a month on Jan. 1, 2024, $845.82 a month on Jan. 1, 2025, $938.01 a month on Jan. 1, 2026, $1,040,26. a month on Jan. 1, 2026, and $1,153.65 a month of Jan. 1, 2027.

 

To contact Dennis Wyatt, email dwyatt@mantecabulletin.com