HomeMy WebLinkAbout4. Solid Waste Impact Fee AnalysisRevising Rates in
Residential and
Multiple Unit
Service
SOLID WASTE SERVICES
Residential Garbage
Supply and Demand
◦The City of Port Arthur lost countless garbage cans when Hurricane Harvey devasted the City of Port Arthur
in 2017.
◦In 2018, the City purchased 5,000 garbage cans to replace those units lost during the hurricanes, but has
not able to keep up with the demand for new customer or replacement request.
◦The City is constantly replacing damaged units on an annual basis with the limited supply that is kept on
hand.
◦Replacing garbage cans cost the City an average of $50 per unit.
◦Regular collection fee of each residential account is $18.00 and an additional $5.00 per can upon the
customer’s request.
◦In order to meet the demand and supply of garbage cans and purchase new units every year, the City is
proposing to increase the fee of $5.00 per each additional can to $7.50 per unit.
Estimated Revenue to Purchase New Cans
Average Number of
Residential with an
additional Garbage Can
Existing ($18+$5 = $23)
Proposed ($18+$7.50 = $25.50)
Monthly Total
Current 7,816 $23.00 $179,768.00
Proposed 7,816 $25.50 $199,308.00
Monthly Revenue $19,540.00
Annual Revenue $234,480.00
$234,480/$50 per can = 4,689 cans per year
Multi-Unit Service Fee
The multi-unit service fee is for trailer parks, apartment complexes or other multiple unit dwellings
(trailer parks)
◦The current rate of $13.55 per house trailer or residence has been the rate since September 2006.
◦In comparison, the regular residential garbage fee back in 2006 was $16.50.
◦Current garbage fee is $18.00 for regular service for residential accounts
◦To keep up with inflation and annual increased operating expenses, the City is proposing to increase the
multi-unit rate of $13.55 to $15.05
Estimated Revenue from Multi-Unit Service Fee
Total # of RV Parks Total # Slots Current monthly
Charge (# of Pick-ups)
Proposed Rate
80% Occupancy
Estimate
Monthly Revenue
Increase
19 934 $3,876.36 $11,245.36 $7,369
Total # of Apartments Total # Rooms Current Monthly 80%
Charge (13.55 x Units)
Proposed Rate
80% Occupancy
Estimated
Monthly Revenue
Increase
39 5,655 $61,300.20 $68,086.20 $6,786
Monthly Total $14,155
Annual Total $169,860
Maintenance Cost and Rental of Garbage Trucks
Estimated Rental of Garbage Trucks
◦$45,000.00
Average Annual Maintenance Cost
◦$120,500.00
Annual Multi-Unit Increase in Revenue
◦$169,860.00
$169,860 –$45,000 –$120,500 = $4,360 Extra Revenue
The Multi-Unit Rate Increase will be able to offset the Cost of Maintenance and Rental of Garbage Trucks
Questions