Fiscal Note
The proposed resolution amends the 2024 Resource Recovery Special Charge to a rate of $2.04 per month beginning August 1, 2024 and ending December 31, 2024. The rate adjustment is due to a contract adjustment with the City's recycing vendor. No additional appropriation is required.
Title
Amending the 2024 Resource Recovery Special Charge
Body
Preamble
On April 19, 2022, Section 4.097 of the Madison General Ordinance was created to establish a Resource Recovery Special Charge (File No. 70344). The ordinance created the Resource Recovery Special Charge in the City based upon the authority granted the City by Wis. Stat 66.0627, pursuant to Sec. 4.09(13) MGO. This special charge allows the City to recover some of the costs of the Street Division to provide curbside recycling services to certain properties in the City. The special charge will only recover the cost for services actually performed by the City, and the amount imposed may be adjusted throughout the year to account for greater or lesser expenditures. The special charges approved by this resolution are being apportioned consistent with the Resource Recovery Special Charge Policy (Legislative File ID No. 71186).
WHEREAS, on April 19, 2022, the Common Council adopted Ordinance ORD-22-00029, File 70344, creating Section 4.097 of the Madison General Ordinances, which ordinance established the Resource Recovery Special Charge in the City of Madison; and,
WHEREAS, the intent of the Resource Recovery Special Charge is to recover the costs to the City to provide collection, sorting and recycling services as part of its recycling program, which program provides a service to mostly residential, but some commercial, properties in the City; and,
WHEREAS, the Recourse Recovery Special Charge is administered pursuant to the Recourse Recovery Special Charge Policy (Legislative File ID No. 71186); and,
WHEREAS, following the Council’s directive in RES-21-00692, the Madison Water Utility sought and obtained approval from the Wisconsin Public Service Commission (PSC) to establish the Madison Municipal Services Customer Assistance Program (Mad-CAP), as a two-year pilot program. Under this program, eligible municipal service bill recipients who earn less than 50% of the area median family income will be eligible for a $20 or $30 rebate on their monthly bill, with the Water Utility, Sewer Utility (including Landfill Remediation), Stormwater Utility, and Streets Division (Urban Forestry and Resource Recovery Special Charges) separately funding a portion of the monthly rebate. Additional information and background about Mad-CAP is contained in a staff memo attached hereto; and,
WHEREAS, the RRSC final report for 2023 included excess revenue collected in the amount of $679,034 due to a contract adjustment with our recycling vendor Pellitteri; and,
WHEREAS, each unit affected by the 2024 RRSC calculation is due a credit of $9.55 which will be credited as a monthly reduction in the amount of $1.91 over the remaining (5) five months of 2024 making the new rate of $2.04 effective August 1, 2024.
WHEREAS, based upon the budgeted amount, the proposed policy, and the requirements of MGO Sec. 4.097(5), the Council is prepared to approve the annual Resource Recovery Special Charge.
NOW, THEREFORE, BE IT RESOLVED:
1. That the 2024 Resource Recovery Special Charge rate, as set forth in Attachment A, shall be $47.43 per dwelling unit, or $3.95 per month with collections starting in January, which rate is adopted in accordance with Section 4.097 of the Madison General Ordinances, the Resource Recovery Special Charge Policy, and the 2024 Adopted Operating Budget; and
2. That the date by which such special charges shall be paid in full is October 31, 2024; and,
3. That this approved monthly Resource Recovery Special Charge rate shall continue until a new schedule is approved by the Common Council.
4. That the new rate of $2.04 per month for the remaining (5) months of 2024 will take effect August 1, 2024.
BE IT FURTHER RESOLVED that the Madison Municipal Services Customer Assistance Program (Mad-CAP) is hereby extended to the Recourse Recovery Special Charge in the amount indicated on Exhibit 4 to the staff memo on Mad-CAP attached to this resolution, the Council separately funding that portion of the rebate attributable to these services directly from the general fund.