Curb-IT For a Sustainable Springfield

Agenda
Trash Reduction Mandate Al Chwalek, DPW Director Financial Implications Lee Erdmann, Chief Administrative & Financial Officer Services to Residents Questions & Answers

Why is the city proposing a smaller trash barrel?

MassDEP continues to implement a wide range of program initiatives to reduce waste and increase recycling and composting, while also ensuring that remaining waste is managed and disposed of safely. In the MassDEPs Master Plan, the primary quantitative goal is to reduce the amount of annual waste disposal by 30% from 2008 to 2020. In 2008, Springfields yearly tonnage was 48,788 tons. A 30% reduction is 14,636 tons reduced. In 2020, our disposed tons of trash must be 34,152 tons per year.
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How do we get to 30% by 2020

The 1st step is to reduce the size cart and recycle more. With the 65 gallon cart and weekly recycling, the tonnage will be reduced 4,000 tons or 10% the first 1-2 years. The second step is identify situations where Solid Waste services should be cut. The 3rd step is to start a food waste composting program. The city is currently working with DEP on a grant to start this program in 2-3 years.
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Complete Cost Of Solid Waste Services

Including our trash, recycling and yard waste, the City spends approximately $10 million on collection and disposal. That equates to $227.55 per household per year.

$227.55

Annual Revenue $3,618,000

At the current trash fee, the city collects $3.4 million yearly. Recycling rebates average $150,000 per year. Bulk stickers and Extra bag stickers average $8,000 per year. D.E.P. grants average $60,000 per year.

Current Costs
$10 million operation Cost of service ($227.55 per household)
Trash removal cost and disposal Recycling collection labor cost Yard Waste collection labor cost Landfill operational costs Fleet maintenance costs Administrative $108.98 $28.13 $25.77 $5.70 $30.25 $28.72
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What Has the City Done to Control Solid Waste Cost?

Implemented single stream recycling
Diverts thousands of tons from the landfill every year

Implemented automated and semiautomated collections

Reduced workers compensations costs

Renegotiated with the landfill operator for a lower fee

The dumping fee will be reduced by about $10/ton in 2014.
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What Has the City Done to Control Solid Waste Cost?

Expanded the landfill at Bondi Island
Added capacity so rubbish doesnt have to transported

Renegotiated the Recycling Contract

Stabilized and increased recycling revenues

Summary of the current Solid Waste Services

Weekly rubbish collection with 96 gallon carts Bi-Weekly recycling collection with 96 gallon carts Bi-Weekly curbside yard waste collection (AprilDecember) Year round yard waste drop off at Bondi Island Landfill Curbside bulk collection Five annual Household Hazardous Waste Collections Two annual Electronic Waste Drop-off events
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What is going to change?

Rubbish will now be collected in new 65 gallon carts. Recycling will be collected weekly with the current blue 96 gallon carts. Residents will have the option to keep the old green 96 gallon cart for yard waste collection. Residents will still be able to place additional bags of yard waste out for pick-up. The Trash Fee will increase by $10 to $29 next year.
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REASONS WHY THE CITY OF SPRINGFIELD NEEDS TO KEEP THE TRASH FEE
Continued cutbacks of state and local aid five years in a row impacting the Citys ability to continue providing services such as police, fire, DPW, Parks, Libraries and other municipal departments Department of Environmental Protection mandate requiring the City of Springfield to cut down trash foot bring by 30% by 2020 Landfills need to be capped. The Springfield City Council just recently voted recently to approve funding Mayor Sarno was able to reduce the trash fee from $90 to $75 due in large part to the single stream recycling efforts Residents will receive 65 gallon barrels. The City needs to purchase the new barrels due to the age of the existing ones Seniors will continue to pay a $50 yearly trash fee there will be no increase The Citys Law Department was able to reach an agreement with Covanta on the tipping and tonnage fee bringing it below $70/ton by 2014 saving the City $8-$9 The City will offer weekly recycling pickup The City will allow residents to keep the existing 95 gallon barrel for yard waste saving residents from purchasing brown paper bags Bulk pickup will state at $8 The Citys Department of Public Works will look at discontinuing trash pickup at large apartment complexes 12

Financial Implications Overall City Finances

FY13 Revenue Assumptions State Aid No increases in State Aid Property Taxes Significant decline Other Local Receipts Collections level to FY12 budgeted Reserves Declining use FY13 Spending Assumptions Departmental Growth Department budget submissions were $15 million or 13% greater than FY12 budget! Scheduled growth for pensions, debt service Base Case Gap of MYFP = $27.1 million

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FY13 FY13 Multi-Year Financial Forecast

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Financial Implications How Trash Services Are Paid For

City has a separate fund called the Trash Fee Enterprise Fund. All revenue associated with trash services (trash fee, recycling rebates, grants, etc.) are deposited into this fund (~$3.8M annually) All costs associated with trash service (trash pick-up, recycling pickup, bulk pick-up, landfill costs, etc) are paid from this fund (~ $10M annually) The delta between the costs and revenue ($10M in costs - $3.8M in revenue) is made up by a General Fund Supplement. This means that revenue that supports other City programs and services such as Police, Fire, Health and Human Services must be diverted to support trash 15 services. (see chart on next slide)

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Financial Implications Why a Fee Change Helps

THE GOAL OF CHANGING THE FEE IS TO MOVE TOWARD A SELF SUFFICIENT TRASH SYSTEM THAT IS ENVIRONMENTALLY AND FISCALLY SUSTAINABLE
TRASH FEE INCREASE OPTIONS
Option 1: FY13 FY17 $29 ANNUAL INCREASES = FY13 EST. REVENUE INCREASE OF $1.2 MIL (self-supporting in 5 years) Option 2: FY13 FY17 $10 ANNUAL INCREASES = FY13 EST. REVENUE INCREASE OF $450K (self supporting in 10+ years; spreads costs to the residents over a longer period of time) Option 3: FY13 $10 INCREASE / FY14-FY17 $5 ANNUAL INCREASES = FY13 EST. REVENUE INCREASE OF $450K (Maintains the General Fund support relatively level)

PROS
Option 1: Self sustaining in 5 years Option 2: Self sustaining in 10+ years; spreads the costs to residents over time Option 3: Minimum increases needed to maintain GF supplement and meet our goals of environmentally and fiscally sustainable The RFID system will allow GPS Tracking of Barrels, Productivity Reports and Accurate Barrel counts Change to new barrels size will decrease tonnage by about 4,000 tons the first year. Estimated Tipping savings of about 10% or $355K because in all options the bin size is reduced to 65 gallons Combination of Curb It and weekly recycling pick-up will encourage residents to recycle more Opportunity to educate residents on trash and recycling City will be closer to meeting 30% DEP mandated trash reduction by 2020

CONS
Annual fee increases to residents New trash system will change pick up days

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Option 3: CURB IT W / FY13 $10 INCREASE, FY14 - FY17 $5 ANNUAL INCREASE

12,000,000

10,000,000

8,000,000

6,000,000

4,000,000

2,000,000

0 FEE INCREASES GENERAL FUND SUPPLEMENT REVENUE EXPENSES

2013 85 5,297,729 4,528,395 9,826,124

2014 90 5,090,466 4,751,830 9,842,296

2015 95 5,047,880 4,975,265 10,023,145

2016 100 5,010,254 5,198,700 10,208,954

2017 105 4,977,726 5,422,135 10,399,861

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Summary of Solid Waste Services to Residents

Proposed - Weekly rubbish collection with 65 gallon carts. Proposed - Weekly recycling collection with 96 gallon carts. Proposed - 96 gallon carts for Bi-weekly yard waste collection. Residents will still be able to place additional bags of yard waste out for pick-up. Year round yard waste drop off at Bondi Island Landfill Curbside bulk collection program (500 tons per year) Five annual Household Hazardous Waste Collections (5,000 gallons per year) Two annual Electronic Waste Drop-off events (100 tons per year) Continuation of current discounts at current amount
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Questions & Answers

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