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By CARRIE JOHNSON, Times Staff WriterThe City Council is scheduled to vote today on the proposed increase. Monthly bills for garbage collection could go from $16.35 to $19.95.
ST. PETERSBURG - One week after approving the lowest tax rate in 20 years, the City Council must decide whether to approve a fee increase that would negate any potential savings for many property owners.
The council is scheduled to vote today on a proposed 22 percent hike in sanitation fees that would take effect Oct. 1. Customers would see their monthly bills for garbage collection jump from $16.35 to $19.95.
Internal Services administrator Andy Houston said the sanitation department has depleted its reserves and can no longer put off an increase. The last hike was in 1988, and the rate was actually lowered in 1997 from $18.20 to $16.35, where it has remained.
Houston said the department delayed increasing the fee for years because water rates were rising rapidly.
"There was a sense that we didn't want to hit customers with big increases in all their utilities all at once," Houston said.
But as expenses began to outpace revenue, the department started using its reserve fund to pay for maintenance and new equipment. Now the fund is depleted, and the 22 percent hike is needed for the department just to break even, Houston said.
Another, smaller increase is planned for next year to add money back to the reserve fund.
Some City Council members have already voiced their reluctance to approve the large increase. While administration officials proudly point to a drop in the property tax rate, the boost in sanitation fees will gobble u p any potentia l savings for many residents.
For example, under the new tax rate, the owner of a $150,000 home with a homestead exemptio n woul d pay about $869 yearly instead of about $886, a savings of $17, if the house didn't increase in value. But the sanitation increase would cost homeowners an extra $43 next year.
"I haven't been completely convinced that this increase is necessary," said council member Bill Foster. "But if our only other option is to start cutting services, I don't know what else we can do."
The sanitation department is an enterprise fund, which means it generates its own revenue to pay expenses. It receives no money from the city's general fund, which is supported by property tax revenue. Foster said he would be reluctant to dip into the general fund to help sanitation because the city has only about $1-million for contingencies.
Sanitation director Chuck Schauer said the rising price of gas has also been a factor. Three years ago, monthly diesel expenses were $55,000. Now they are more than $115,000.
If council members don't approve the increase, the department must start cutting services that don't produce revenue, such as graffiti removal and free pickup of furniture and large appliances.
"We're at the point where we have no choice," Schauer said. "We have to raise the rate."
--Carrie Johnson can be reached at 727 892-2273 or cjohnson@sptimes.com