Posted on October 16, 2013
An exclusive analysis by Tallahassee Reports of the solid waste contracts negotiated separately by the Leon County Board of County Commissioners and the City of Tallahassee with Waste Pro, Inc. over the last year has revealed two different approaches of dealing with consumers dollars.
The County Approach
The Board of County Commissioners (BCC) previously had a services contract with Waste Management, Inc. to provide garbage collection for residents living inside the unincorporated areas of Leon County. County residents were paying $19.56 per month for garbage services under this contract.
Like the City of Tallahassee, the County garbage services include once a week garbage and recycling and comparable yard waste and bulk waste pick-up.
The BCC recently put the garbage services contact out for bid and ultimately signed a contract with Waste Pro, Inc. at a reduced monthly rate of $13.40 for county residents. The BCC does not collect any of the garbage fees, instead the contractor, Waste Pro, is responsible for collecting the fees from the customer.
The savings for county residents under the new contract are significant. Based on 23,000 county residents using Waste Pro services, the annual savings passed on to the customer amounts to just over $1.7 million.
The City Approach
The City of Tallahassee has been using a combination of Waste Pro and City resources for garbage services for a number of years. The standard rate for City residential garbage service under this contract was $16.98 a month.
The City of Tallahassee recently negotiated an amendment to the current contract that resulted in Waste Pro agreeing to lower their rates by approximately 15%. However, instead of passing on any of the savings to the customer, the City of Tallahassee’s monthly rate for garbage services actually increased from $16.98 per month to the current level of $17.23 per month. The City provides residential garbage services to approximately 46,000 citizens.
These findings indicate that a county resident pays $13.40 for the same services that a City of Tallahassee resident receives, but the City resident pays $17.23. Why the disparity?
An in depth analysis and comparison of City and County garbage rates, displayed in the table below, reveals that City of Tallahassee retains $5.48 more per month per customer than what the garbage service actually costs. This translates to just over $3 million a year in additional fees or taxes collected that are not required to provide the service.
City of Tallahassee
|Total Annual $ Retained||$0||$3,024,960|
|Fee Charged per Customer||$13.40||$17.23|
|Garbage Pick-Up Cost||$13.40||$11.75|
|Amount Retained After Cost Per Customer||$0||$5.48|
|Number of Customers||23,000||46,000|
|Total Monthly $ Retained||$0||$252,080|
Where does the money go?
A review of the latest City of Tallahassee budget reveals that $1.6 million is transferred from the solid waste fund to support general fund services. This leaves approximately $1.4 million in fees or taxes that are not accounted for. Tallahassee Reports contacted city staff and were told that the solid waste department is an Enterprise Fund and that it needs the funds to support their activities.