Remove ImagesTaxpayers Still Subsidizing Trash Haulers
January 03, 2013
Greensboro taxpayers continue to subsidize the private haulers that drop off trash at the Greensboro transfer station. Although the council expressed concern about the costs months ago, the transfer station may not start breaking even or generate a profit for another two years.
The city currently charges $41 per ton to drop off garbage at the city transfer station. However, the city spends $47.12 per ton processing and transporting the garbage.
The city's new contract with Republic Waste Services and Hilco Transport has lowered that cost to a projected $46.18 per ton for the fiscal year 2013-2014, but that still leaves a $5.18 a ton subsidy.
Without a fee increase the transfer station would produce a net loss of $1.1 million next fiscal year according to a memo sent to the Greensboro City Council on Dec. 7 from Greensboro Field Operations Manager Dale Wyrick. Non-city tons would account for $466,200 of that short-fall.
Councilmembers asked staff about the subsidies at a July 17, 2012 council meeting. Several councilmembers questioned why the city wasn't charging fees to cover its costs.
However, according to Councilmember Nancy Vaughan, who served as the council liaison for the Waste Management and Recycling Task Force, the city staff "was tied up with all the other contracts at that point," and so nothing was done about the issue.
Vaughan said she would have liked for the fees to go up sooner, but she said, "Staff's preference was to notify the users and do it July 1." Vaughan also said the council has yet to discuss the issue in depth.
"If we are going to subsidize anybody it ought to be the in-city residential customers," Vaughan said. However, she said she didn't think the city should be subsidizing anyone's garbage disposal.
City staff has expressed concern that raising the rates could cause the city to receive fewer tons of trash.
In the memo to council, Wyrick said one option is to increase the tipping fee to $46.50 in one year but said, "The significant price increase could cause those collectors to take their MSW [Municipal Solid Waste] to another disposal facility at a less-expensive rate."
According to Vaughan, instead of raising the tipping fee to cover expenses at once, Wyrick had recommended a gradual rate increase over the next two years.
Vaughan said, "My preference, anyway, would be to do it at once."
However, Vaughan said she understood the concern about losing trash to competing landfills and transfer stations.
Vaughan said there are costs associated with the transfer station, including debt service on the $8 million facility and the cost of closing a portion of the White Street Landfill, which will remain regardless of how much business the transfer station receives.
"With all that being said, it might be worth the risk to raise the rates to make sure that we're covering all our costs," Vaughan said.
Vaughan also said she was not sure why the city is not charging itself the full cost of processing and transferring trash, since the city pays the cost either way.