Trash Costs--A Mid-Year Suprise in the Works?

In his recent article in The Phoenix about Phoenixville’s trash service, Mr. Lawrence states that the trash fee is $220 a year. While that is technically true, the article fails to explore the real trash fees that will need to be charged in order to meet the 2007 budget.

The Borough’s approved 2007 budget shows trash fee revenue of $569K from quarterly billings in the first half of the year. For the second half, it shows a total of $824K from lower quarterly charges combined with per-bag charges, based on two bags per user per week. My analysis of the 2007 trash revenue and expense shows a deficit of $81.5K in the first half, which is reversed by a $104K surplus in the second half. I sent a detailed description of my calculations to all the Council Members on April 6, 2007 and spoke to that issue at Tuesday’s Council meeting.

The Borough’s own approved budget thus shows an average per user charge of almost $160 for the second half year, equivalent to $320 per year. The second half charges represent an increase of 44.8% over the first half. The first half rate was itself about 30% over last year’s, if my recollection of a quarterly rate if $42 is correct.

Even if the per-bag system, which creates additional cost, is not implemented, a rate increase of about 29%–33% is needed to balance trash revenue with budgeted expense.

In short, Council low-balled the trash charges at the beginning of the year, when Council and the Administration knew, from their own approved budget, that users would be hit with another, even larger, increase.

If you want to see the letter and spreadsheets that I emailed to the Council Members, contact them. I’m sure they’ll be glad to hear from you and to share the information that they have.