25LINKBUDGET(FULL) - Flipbook - Page 66
City of Plymouth 2024 / 2025 Budget
Waste & Recycling Rate Determination
The City offers waste and recycling services to its residents. Plastic, paper, and yard waste
are collected weekly, alongside the regular waste disposal schedule. In 2014, the City
transitioned to an automated cart system for waste and recycling collection on a weekly basis,
a change that was well received by residents. Additionally, the City periodically arranges for
the disposal of brush, cut branches, and larger waste materials.
Starting from the 2009/10 fiscal year, the City was no longer responsible for long-term debt
associated with the capping of a former City-operated landfill located at Chubb Road and Five
Mile Road in Salem Township. However, the City may still incur future financial obligations
related to the monitoring and maintenance of this former waste facility.
The current disposal system is funded through a combination of taxes authorized under Public
Act 298 of 1917, monthly trash cart fees for both waste and recycling containers, and the sale
of waste disposal bags primarily used by low-volume consumers.
Before December 2004, the system was solely funded through taxes and the sale of bags
and/or tags. In the fiscal year 1992/93, taxes covered nearly 68% of the costs, while 29% came
from the sale of bags, tags, and other user charges. Since then, funding has occasionally
shifted between taxes and user fees but has generally remained supported by taxes at around
2/3 of the total.
Historically, the administration aimed to align tax support with recycling service costs and
landfill debt service, relying on user fees to cover waste removal costs. Recycling costs
typically represented less than 20% of the total operational costs. However, following the
implementation of the new contract in 2020, recycling's share of the cost has increased. Given
that the millage rate for this service under Public Act 298 of 1917 is subject to Headlee
rollbacks as an operating millage, it is prudent to consistently monitor the current rate
structure of this fund.
It is generally recommended by the administration to decrease reliance on taxes by
transitioning financing to user-based charges that more accurately reflect the total costs of
providing this service.
Public Act 298 permits the levy of up to 3 mills for waste removal services. However, due to
Headlee rollback provisions, the maximum authorization has been reduced from 3 mills to
2.0596 mills. In fiscal year 2014/15, the City Commission raised the levy for this service from
1.72 mills to 1.92 mills. However, due to the solid financial performance of the fund for that
year and 2015/16, the millage rate was reduced to 1.82 mills for fiscal year 2016/17. Since
1993, millage rates for this service have fluctuated, ranging from a low of 1.25 mills to a high
of 1.97 mills in 2006.
In April 2010, the administration transferred street sweeping and tree removal and
replacement services from the Major and Local Street Funds to the Waste and Recycling Fund.
This led to an increase in refuse cart rates from $7.15 per month to $9.42 per month, a rate that
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