MSB Assembly continues discussion of dump fees

For its last two meetings, the Mat-Su Borough Assembly has discussed rolling back increases to fees at borough solid waste transfer sites. That discussion will last at least one more meeting, after a decision was delayed earlier this week.

Assembly Members Dan Mayfield and Vern Halter sponsor the proposal currently on the table. It rolls back rate hikes for dropping off trash at transfer sites. The assembly approved the increases during the borough budget process. Now, Halter and Mayfield say the new fees went too far.

The borough’s solid waste division is run as an enterprise fund, which means it is supported exclusively by user fees. No tax money is allowed into its budget. As of the end of the last fiscal year, the fund was in the red by $3.5 million. When an enterprise fund runs in the red, the difference is borrowed from the general fund.

Terry Dolan, Public Works Director for the borough, says the new rates still fall short of solvency for transfer sites.

“On the transfer stations, the current rate produces a deficit of about $159,000, and that means that these higher rates that were put in place on the first of July still don’t pay the full cost of disposing of waste at the transfer sites.”

Under the current rates, Dolan says the central landfill is projected to run a surplus, which would cover the shortfall at the transfer sites and allow the fund to pay back some of what it owes to the borough. He says the solid waste division could break even with a small reduction in rates, but that the proposed cuts would make the current deficit problem worse.

“Bottom line is I can’t recommend reducing the rates significantly beyond about the five-to-seven percent I mentioned earlier. The current rates allow for significant debt reduction, as [Assembly Member Ronald] Arvin described during the budget discussions before you voted on the current rates. If you do adopt the proposed rates, it’s going to create about $1.3 million in new debt.”

Assembly Member Dan Mayfield says the rates he wants to return to already represent an increase over 2014 rates, and that future increases may be needed, but that multiple increases in a short timeframe impact borough residents’ pocketbooks.

“Take your one bite, whatever it is, and stick with it. Use sound planning. Don’t come back to the public for a second bite—a second, much larger bite—that impacts them financially.”

The last round of increases is significant. A single bag of trash went from one dollar to three dollars, and a truckload that contains three cubic yards of trash doubled in price.

Assembly Member Steve Colligan says he recognizes the impact of higher prices, but that filling the budget shortfall from the borough’s general fund means there is less money for other budget items.

“We’ve handed out cotton candy and free purple ponies to the public and the like, and sooner or later this is—and nobody wants to pay more—we have costs, and that extra cost is coming from somewhere. Is it coming out of the school district budget next year? Where is it going to come from? Where is it going to come from this year if we cut this? That’s my question.”

After over an hour of discussion on the topic, the assembly voted 4-3 to postpone a final vote on reducing transfer site fees until the September 1^st meeting.