As our U.S. Dollar continues to weaken, inflation is on the rise, and a big concern for Americans.
TAMPA - Expect to pay more for wastewater and trash pickup services within the next few years.
City officials have hinted at the possibility of rate increases before, and on Tuesday a top city administrator bluntly told the council he planned to propose a five-year rate plan by this time next year.
"The wastewater department, the solid waste department and the parking division are all in difficulty financially," said Steve Daignault, administrator for public works and utility services. "They are all using reserves."
No specifics regarding how much rates might be increased are available, but Mayor Pam Iorio said Tuesday that either a one-year rate increase or a five-year plan would be necessary.
The average wastewater bill is $33.60 a month. The average garbage bill is $25.25.
The council met Tuesday for a nearly three-hour workshop on the budget. The conversation focused on enterprise departments - departments that draw their funding from user fees instead of property taxes. They are designed to be self-sustaining departments that run like a business.
The wastewater department is facing a nearly $9 million budget gap in fiscal year 2009, which begins Oct. 1. The gap is expected to widen to about $12 million the following year unless fees are increased or expenses reduced.
In 2005, the city council approved a 5 percent rate increase for wastewater services. Department Director Ralph Metcalf said Tuesday that hasn't been enough. Operating costs, mainly for chemicals, electricity and fuel, have increased.
Operating and maintenance costs have grown from about $31 million in 2006 to a projected $42 million in 2010.
"It's got to be fixed, whether it's next year or sometime in the future," Councilman Charlie Miranda said. "It doesn't look too good. Something has to be done to remedy the situation."
The solid waste department also is struggling, especially as fuel costs escalate. Iorio tried to increase rates this year but dropped the plans when the city attorney spotted a legal problem with the proposal. Daignault said Tuesday he expected to develop a new plan to bring to the council next year.
The parking division is operating with a deficit, with expenses at $16.7 million but revenue at $14.8 million, said Irv Lee, public works director. He plans to cut 20 positions in the division, mostly by not filling positions. Two layoffs are expected.
The council holds its next budget workshop June 24 at City Hall.
The mayor is expected to present the fiscal year 2009 budget Aug. 7.
Reporter Ellen Gedalius can be reached at (813) 259-7679 or egedalius@tampatrib.com. Content from: The Tampa Tribune Published: June 10, 2008
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