Council Approves $124-Million Budget

After an acrimonious debate about the city’s trash hauling contract, the City Council Monday night approved a $124-million general fund budget for fiscal 1996-97.

Many of the two dozen speakers at the meeting, including representatives of competing trash companies, opposed a 12-year contract with Great Western Reclamation, the city’s current trash hauler, arguing that the city should seek bids for the $20-million-a-year contract.

City officials defended the contract extension, however, saying that it could mean lower monthly bills for businesses and residents.

Great Western won the contract three years ago after the city sought bids.

Because of lower landfill rates charged to trash haulers, bills for residential users and some small businesses are already slated to drop by about $1 a month, from $14.99 to $14.02. Bills for most businesses will drop by at least $2.50 a month, officials said.

The council voted Monday to reduce the bill further by dropping a proposal for a 1% franchise fee increase, which would have been passed on to businesses, and a 1% curbside rate increase proposed for residents and some small businesses.

The council also voted to lower trash rates for senior citizens and mobile homeowners, saying that they generate less trash.

The new budget projects a $10-million deficit that officials said will be made up in part by staff cutbacks and by $1.38 million in revenue anticipated from a new recycling program.

The city also will consider increased water rates, to be shouldered mostly by businesses, that would bring in $2.5 million for repairs to water pipes and related structures.

The council passed the budget on a 5-2 vote, with Councilmen Ted R. Moreno and Tony Espinoza dissenting because bids were not sought for the trash contract.