Mayor and Council



   For the meeting on:

  February 27, 2017
   Department:   Finance
   Responsible staff:  Stacey Webster, Deputy Director of Finance
  phone: (240) 314 -8407
  SWebster@rockvillemd.gov


Subject
Introduction of a Resolution to Establish the Service Charge Rate for Municipal Refuse Collection and to Establish a Charge for Unreturned Refuse and Recycling Carts pursuant to Section 20-6 of the Rockville City Code

Recommendation
Staff recommends that the Mayor and Council introduce the Resolution to establish the service charge rate for Municipal Refuse Collection and to establish a charge for unreturned refuse and recycling carts pursuant to Section 20-6 of the Rockville City Code.

Change in Law or Policy
Setting the refuse rate for FY 2018 requires the passage of the attached resolution. This resolution is scheduled to be introduced on February 27, 2017, with adoption scheduled for May 1, 2017.

Discussion
The Refuse Fund accounts for the financial activity associated with the collection and disposal of residential recycling, refuse, and yard waste.

The City currently operates a semi-automated, once-per-week refuse and single-stream recycling program. The FY 2018 rate is proposed to increase by 5 percent to $445 per year due to increased operating costs of the program, uncertainty surrounding the sorting and hauling of recyclable materials, and the overall projected decrease in revenue from the sale of recyclable materials.

Starting in FY 2017, the City placed the refuse and recycling charge on the County tax bill. Prior to FY 2017, the City direct-billed all refuse and recycling charges.

Mayor and Council History
Past Mayor and Council actions related to the FY 2018 budget include:

Date
Action Item
September 12, 2016 Discussion of Operating Budget Process
September 19, 2016 Discussion of Capital Improvements Program (CIP) Budget Process
October 11, 2016 Distribution of Mayor and Council Budget Surveys
November 1, 2016 Budget Public Hearing
November 10, 2016 Mayor and Council Budget Surveys Due
December 12, 2016 FY 2018 Budget Survey Results and Discussion of Budget Priorities
January 9, 2017 FY 2018 Cost Allocation Plan (CAP) Presentation
February 13, 2017 Distribution of FY 2018 Proposed Budget

Public Notification and Engagement
The City held the first public hearing related to the FY 2018 budget on November 1, 2016. The remaining public hearings are scheduled for March and April 2017.

In addition to the budget public hearings, the public can submit written comments about the budget via an online form located on the City's website at www.rockvillemd.gov/budget. These comments will be distributed to the Mayor and Council at the close of the public comment period and will be included with the agenda materials for the final budget worksession.

The public comment period closes on April 7, 2017.

Fiscal Impact
The proposed FY 2018 operating budget for the Refuse Fund equals $7,115,140. The proposed budget is based on a refuse rate of $445 per year.

Next Steps
Future Mayor and Council actions related to the FY 2018 budget include:

Date *
Action Item
February 27, 2017 City Manager's Presentation of FY 2018 Proposed Budget;
Introduction of FY 2018 Budget Ordinance;
Introduction of FY 2018 Refuse Fee Resolution;
Introduction of FY 2018 Stormwater Management Fee Resolution
March 2, 2017 Mayor and Council Worksession
March 6, 2017 Public Hearing
April 3, 2017 Public Hearing;
Mayor and Council Worksession
Constant Yield Tax Rate Public Hearing
April 7, 2017 Close of Budget Public Record
April 17, 2017 Mayor and Council Worksession
May 1, 2017 Adoption of FY 2018 Budget Ordinance;
Adoption of FY 2018 Refuse Fee Resolution;
Adoption of FY 2018 Stormwater Management Fee Resolution
* All dates are subject to adjustment by the Mayor and Council during the budget process.

Attachments
Attachment A - Resolution
AttachA_Refuse_Feb2017.pdfAttachA_Refuse_Feb2017.pdf

Department Head:



Gavin Cohen, Chief Financial Officer
Approved on: 02/15/2017

City Manager:

Robert DiSpirito, City Manager
Approved on: 02/22/2017