Council leans toward garbage-rate increase after transfer-station and landfill fee notices

Highland staff outlined three scenarios for residential garbage rates to absorb higher transfer and landfill costs and recommended the option that accounts for a likely $1.50-per-ton increase at regional transfer stations.

Jay (public-works staff) told the council the city already absorbed a negotiated 5% increase from Northpointe in January and that Waste Management will apply a 5% contract increase in July. Jay also said Bayview's operator (New Era) announced a $1-per-ton increase that takes effect July 1; staff used a $1.50-per-ton scenario to be prudent.

Those cost changes mean doing nothing would produce an estimated $195,000 deficit in the city's garbage fund. Staff presented three options: (1) no rate change (deficit), (2) a breakeven approach that would raise roughly $4.38 per month per household (for a typical household with two garbage cans and one recycling can), or (3) a breakeven approach that includes the likely Northpointe/$1.50 per ton increase and would require about $5.06 per month per household. The council signaled it was "leaning towards option 3," factoring the higher transfer-station charge into July's rates.

Jay gave additional detail on costs and usage: the city ships roughly 9,042 tons of waste annually, and current residential charges fall short of actual service costs (for example, staff said the city's cost for a first garbage can is about $12.53 per month while the customer charge is $11.33). Councilors suggested tying any rate change to a public education effort about recycling to reduce tipping fees over time.

Ending: Staff will update the rate tables and include the selected scenario in the final budget calculations; council asked staff to pursue outreach and to schedule the waste-management contract renewal for council consideration at a future meeting.