pages: CityCouncil/2013-07-02.pdf, 7
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CityCouncil | 2013-07-02 | 7 | differently. Councilmember Chen stated some customers will see a rate increase of more than 10%, perhaps 20%, or even 30%. Mr. Simonson responded the 10% increase is for single family residents; 20 gallon rates will increase 16.5%; all others will increase 6%. Councilmember Chen inquired if the 7% above the 10% is going into a reserve. Mr. Simonson responded the amount is not additional; the increases generate exactly what ACI needs: $17.2 million; the rates will accomplish the $17.2 million based on the current subscription levels. In response to Councilmember Chen's inquiry, Mr. Simonson stated the City is still susceptible to revenue shortfalls; costs do not change because items disposed of still go into one of the three containers, just not the one residents are charged for; in an effort to make the revenues more reliable, strides to get the 20 and 32 gallon rates closer to the true service cost and move towards no revenue shortfalls. * Councilmember Daysog left the dais at 8:39 p.m. and returned at 8:40 p.m. * Mayor Gilmore inquired if the revenue estimates are based solely on rate changes and anticipate no change in customer behavior. Mr. Simonson responded migration is built in based on where revenues are going; customers can downsize and there would not be a significant shortfall; many commercial customers already have 20 and 32 gallons; 95% of residential customers have already shifted to the smallest can. Mayor Gilmore inquired how the target was missed so badly this year. Mr. Simonson responded last year, a 9.2 or 9.6% increase was necessary but only an overall increase of 5% was requested and authorized; there was already a built-in gap coming into this year; the increase was kept at 5% because of the economy and not wanting to severely impact the residents and businesses annual bases; the rates are bring brought current to provide 100% of the revenue requirement. Councilmember Chen stated since 40% of customers have single family homes; recycling is encouraged; $120 savings can be pocketed if residents recycle; a 17% increase sends the wrong message. Mayor Gilmore stated the rate increases are not specific to garbage collection; increases are happening in a lot of the industries, including water and electricity. Regular Meeting Alameda City Council 7 July 2, 2013 | CityCouncil/2013-07-02.pdf |