Waukesha officials told the finance committee that the city moved the residential curbside contract for garbage and recycling into a special revenue fund and that a new resident fee implemented this year is intended to cover contract costs.

Public-works staff said the drop-off center’s operations — staffed public access and higher per-ton disposal costs — remain in the operating budget and are running a projected subsidy. "The drop off center is not revenue neutral at this point in time. We are running probably $50,000 to $60,000 subsidy for it out of the general fund," Public Works Director Alex Damien said.

Finance staff explained that state law requires removing the former levy-backed portion of curbside collection from the general-fund levy; the levy reduction is based on historical (2014) levy support for that service. The new fee is expected to be collected via tax bills for many residents who did not prepay; staff said the special revenue fund will show the contracted-service expense and fees netting to zero in the fund accounting.

Committee members asked about spikes in tonnage (including flood-related disposals earlier in the year), credit-card processing at the drop-off site and the expected year-over-year contract increases contained in the vendor agreement.

Public-works staff said they are exploring electronic payment options at the drop-off site (fiber or cellular connection) and expect the curbside contract permits automatic annual increases as specified in the contract.