Title
A Resolution of the City of Coral Gables, Florida, relating to the collection and disposal of solid waste in the City of Coral Gables, Florida; determining the solid waste cost and the Solid Waste Service Assessments for the fiscal year beginning October 1, 2020; directing the preparation of an assessment roll; authorizing a public hearing and directing the provision of notice thereof; and providing an effective date.
Body
The City shall provide solid waste collection and disposal services to assessed Residential Properties located within the City upon the imposition of Solid Waste Service Assessments. Resolution Number 2016-149, Amended and Restated Initial Assessment Resolution, was adopted on June 14, 2016, and Resolution Number 2016-207, Amended and Restated Final Assessment Resolution, was adopted on September 13, 2016. The Master Service Assessment Ordinance (No. 2015-09) was adopted on May 26, 2015.
Pursuant to the Master Service Assessment Ordinance, this resolution initiates the annual process for updating the Assessment Roll, sets the proposed Solid Waste Service Assessment rates to be imposed against Residential Properties (which includes all condominiums, multi-family parcels of up to 4 dwelling units, and single family parcels that receive a residential, curbside solid waste collection service from the City) for the fiscal year beginning October 1, 2020, calls for the public hearing on these rates, and directs the provision of notice. Further, any additional delinquent Solid Waste Collection Fees will be included as well.
Miami Dade County has estimated an increase in the disposal (tipping) fee of 1.5% and that cost would be passed through to the residential properties located within the City. This pass through increases the Solid Waste Service Assessment rates and exemptions for the upcoming fiscal year by $4.00 for each single-family home.
In addition, staff reviewed the receipt history for solid waste collections and determined that the current fee structure is no longer in line with receipt activity. Prior to placing the Solid Waste assessment on the tax bill, approximately 30% of customers took advantage of the early payment discount. Since then, this has shifted and approximately 72% of customers are paying early, resulting in lower annual revenues of approximately $600,000 for each of the past four years.
Currently the early payment discount is 15% which is no longer sustainable considering the shift in payment trends. Immediately prior to placing on the tax bill, the general fund subsidy was 17%. Since implementation, the subsidy has risen to 27.8%. While this rise in subsidy is not fully due to the change in payment trend, the aforementioned loss of revenue has been the most significant cause of the increase in subsidy.
As such, staff is proposing a three-year phased in approach to eliminate the early payment discount realizing that individuals can take advantage of the 4% early payment discount offered by the County.
At the current proposed regular payment rate of $898.00 a 3-year phased in elimination of the early payment discount results in an additional $44.00 per year added to the early payment. In the third year when no early payment discount is offered, all assessments will be placed on the tax bill.