PORT ANGELES — Clallam County customers will see reduced rates for solid waste disposal at the Port Angeles Regional Transfer Station starting Jan. 1.
Port Angeles City Council members have voted 5-0 to approve an ordinance reducing all solid waste rates — except for the disposal of biosolids, which will increase 5 percent. Deputy Mayor Cheri Kidd and Councilman Dan Gase were absent from the meeting.
The rate reduction will lower the cost to customers who haul to the transfer station on West 18th Street operated by Waste Connections by about $25 per ton.
Waste is compacted and shipped to Roosevelt Landfill in eastern Washington.
A pre-taxed ton of municipal solid waste, which cost $164.26 before, will now cost $148.17 — a savings of 9.8 percent.
“It’s quite unusual for us to be in a position to reduce the utility rate, and I think this an exceptional thing,” Councilman Brad Collins said of the reduction.
City officials recently conducted a cost of service analysis (COSA) for the Solid Waste Transfer Station, which suggested a new reduced rate for standard tipping fees due to higher waste volumes than anticipated at the writing of the contract in 2014.
In addition to the rate reduction, city officials will look to negotiate a new contract with Waste Connections, City Manager Dan McKeen said.
Prior to the council’s vote, Chris Giraldes, business manager of Waste Connections, said the solid waste company has incurred fees not reflected in the current contract with the city. Giraldes asked for more consideration of a rate modification the company requested in December.
“Prior to a reduction, I ask that you look at the modification increase that we’ve asked for, due to the fees we have to pay in the contract that are not captured,” Giraldes said.
Councilman Lee Whetham expressed concern about contract negotiations.
“What’s important here is that we recognize that this is only a one-year rate. I do have concerns spoken about during public comment period — to me, it’s all about a contract,” Whetham said.
“We’ve got to double down and get to the issue we have with the city contractor. I think with further analysis, we’re going to be OK.”
“It’s going to be a one-year rate only,” he continued. “But that’s not to say staff should let up on any kind of negotiations with the city contractor. I’d like to support this.”
Addressing Giraldes, Mayor Patrick Downie said: “I expect the city will be following up with you shortly.”
The rate reduction approval took place within a discussion of the city-wide projected revenue for 2018: $103,733,300.
Major variances from the 2017 budget of $104,265,100 include a nearly $1.9 million decrease in intergovernment funding due to a non-renewing grant and an expected loss of about $2.8 million in charges for goods and services due partly to decreased electric utility consumption, budget officer Sarina Carrizosa said.
Increasing revenue sources include taxes, licenses and permits, miscellaneous revenue, property/trust income and other financing sources.
Charges for goods and services encompass 61.84 percent — the majority — of the city-wide projected 2018 revenue for all funds, including the general fund.
Taxes make up 16.4 percent, miscellaneous is 11.19 percent, other financing sources are 6.28 percent, intergovernment revenue 5.28 percent, licenses and permits 0.61 percent, property/trust income 0.18 percent and fines and penalties 0.01 percent.
The city’s 2018 general fund revenue was projected at $19,270,100.
“Review of the city’s tax revenue sources, as well as the city’s other revenue sources, indicated that the near-term outlook for revenues for the city in the general fund is guarded but slowly improving,” according to the board agenda packet.
The general fund’s estimated revenue breaks down as:
• Taxes: $12,745,000 or about 66 percent.
• Charges for goods and services: $5,057,500 or about 26 percent.
• Licenses and permits: $532,700 or about 3 percent.
• Intergovernment revenue: $498,500 or about 3 percent.
• Other financing sources: $220,000 or about 1 percent.
• Miscellaneous revenue: $206,400 or about 1 percent.
• Fines and penalties: $10,000 or near 0 percent.
Property, sales and utility taxes constitute the three largest tax revenues in the 2018 projected general fund revenues.
General fund property tax revenues for 2018 were estimated at $4,533,700, compared to $4,503,400 in 2017.
General fund sales tax revenues were estimated at $3,364,300, compared to $3,298,400 in 2017.
Contrasting 2017’s utility tax to the 2018 estimates, the solid waste collections tax revenue will increase by 29.35 percent; electric utility revenue will decrease by 12.41 percent; solid waste landfill revenue will decrease 8.11 percent; water utility revenue will increase by 6.68 percent; stormwater utility revenue will increase by 6.52 percent and wastewater utility revenue will increase by 0.27 percent.
Projected tax revenues are accounted based on expected consumption and the tax rate, Carrizosa said, noting these numbers are preliminary and subject to change.
Next council meeting
Although the council did not discuss 2018 expenditures, the board’s agenda packet identified budget priorities as public safety, projects that support community enhancement and the addition of a transportation benefit district.
In 2018, the transportation benefit district will collect an estimated $700,000 from the recently approved 0.2 percent sales tax for use on capital projects in the transportation improvement plan. Those revenues are accounted for in a separate fund.
During a workshop session Tuesday, McKeen, Carrizosa and finance director Tess Agesson will review the city’s proposed 2018 expenditures.
The agenda may be found at wa-portangeles.civicplus.com.
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Reporter Sarah Sharp can be reached at 360-452-2345, ext. 56650, or at ssharp@peninsula dailynews.com.
