the garbage fee - the fee is garbage

Shortly after releasing the findings [2] of the consultant hired – with Council’s approval - to find efficiencies and suggest cost cutting as well as money generating measures, the Jackson Administration proposed several immediate changes to help Cleveland move towards the goal of a balanced budget.  Among these immediate steps was a change in the use of funds generated by cemeteries, a study to determine the feasibility of fees assessed by various Cleveland Departments and a $9.25 per unit fee for residential garbage collection to go into effect at the start of 2010.

While the efficiency findings were extensive, a small portion of them yielded the largest impact on the City budget.  The fee for trash collection, which currently costs the City more than $27 million dollars annual to perform, is one of the larger items.   According to the efficiencies findings, “the City could generate more than $2.25 million annually for every dollar charged per month for solid waste collection.  Therefore a $5.00 monthly charge per household would result in $11.4 million in yearly revenue.”  The Administration’s proposed $9.25 per unit (there are 190,000 dwelling units in the City) monthly fee is $0.44 less than the average fee charged in comparable Ohio cities. 

The legislation proposing the trash collection fee was introduced on November 16th and heard by a joint committee of Council’s Public Service, Legislation and Finance Committees on November 23rd and November 30th.  A joint Legislation and Finance Committee concluded its review of the legislation on December 7th.  Through the hearing process Council has examined the details of fee and billing structure, projected collection rates and the current budgetary situation [3].  Council Members expressed the concerns of their residents at the hearings, including the ability of some individuals to pay a fee. 

Council amended the proposed legislation, bringing the fee down to $8.00 per unit, with a 25 cent annual increase capping at $8.75 per unit in 2014.  In 2014, the fee will be 94 cents less than the average fee charged in comparable Ohio cities today.  To assist those people least able to pay a new fee, Council negotiated a Homestead exemption, which will provide a 50% discount to people 65 years or older or disabled who meet certain income guidelines. Furthermore, if not all units in a multi-family home are occupied or a unit is not occupied for 60 days or more, a waiver of the fee will be available.  The exemptions will impact the overall revenue generated by the fee, but it will also make paying easier for the neediest in our City.

No one on Council wanted to take this step. However, the reality is that sacrifices need to be made in order to make ends meet. The City is legally obligated to balance its budget, and these were the best of the bad choices available to us.