Waste fees increasing in 2008

By Bob Williams | The Daily Journal

Published Thursday, November 1, 2007

Solid Waste Director Mike Hanan announced increases in tipping and service fees regarding solid waste disposal in 2008.

The department is an enterprise fund, meaning they generate all revenue from these fees and the occasional state grant. The costs of paying for construction of the transfer station, scheduled to be built in 2008, is the main reason for the increase. Construction was scheduled to begin in 2007 on the station.

“We rejected bids and will rebid the project hoping to save at least $500,000,” Hanan said.

Raising the service fee 50 cents to offset the fixed costs associated with constructing the station will generate approximately $120,514 at the new value of $8.50 per point. A point refers to a property generating waste. There are currently 241,028 waste generating points in Otter Tail County. Of the two fees, the service fee is the most stable of the two. Tipping fees are based only on waste actually disposed of at the county operated facilities.

According to data provided by Hanan, increased operating costs from the 2007 budget to the 2008 will be approximately $176,000.

“These costs are not as drastic as they may have been since the 2007 budget assumed the opening of the transfer station in the fourth quarter of 2007,” he said.

The 50 cent raise in service fees will equate to merely $2.50 per household annually. The largest business will pay roughly $3,000 more per year. The tipping fee will be raised $5.00 to 49.06 per ton.