Title
Consider an ordinance amending Chapter 32, Sections 32-33(a), (b), and (c), Code of Ordinances (2018 Edition), regarding residential, nonresidential, and downtown commercial district garbage rates. (Second Reading)
Body
In November 2021, the City entered into a contract with Central Texas Refuse (CTR) as the sole-provider for the collection, delivery, and disposal of solid waste and recyclable materials for all residential customers, City facilities, the Downtown Commercial District, and all other commercial and industrial customers within the City.
Per the contract, each year, CTR may petition the City for reasonable adjustments to the Residential Services Rate, Downtown Commercial District Services Rate, and Commercial Services Rate based on increases in inflation as demonstrated by the CPI-U (Consumer Price Index Rate for all Urban Customers, Garbage and Trash Collection). The CPI-U as published by the U.S. Bureau of Labor Statistics for July shall be the base CPI-U utilized for the purposes of calculating a proposed rate adjustment. Any rate increases shall be capped at 5% and rate decreases limited to -2%.
The July 2024 CPI-U was 3%; therefore, CTR has petitioned for a 3% increase to all three rates based on the terms of the contract between the City and CTR. This petition includes a 3% increase to the Residential Service Rate from $21.32 to $21.87 per month. This rate includes a $3.10 administrative fee that assists in funding the operation of the solid waste and recycling program, such as the operation of the Recycling Center on Deepwood Drive.
This petition also includes a 3% increase to all Downtown Commercial District and Commercial Services Rates. The Downtown Commercial District Rate includes an administrative fee of $3.10 or 10% of the base rate, whichever is greater. The Commercial Services Rate also includes a 10% support cost fee. Both Downtown Commercial District and Commercial Services Rate fees assist in funding the operati...
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