More than half of St. Paul's Public Works budget for organized trash collection in 2019 will go toward paying residents' delinquent bills.
The new trash collection system will cost the city's Public Works department about $5.4 million in 2019, according to a city financial analysis. The city initially budgeted about $2.6 million, knowing the amount of money needed to operate organized hauling would change when delinquent bills came due, said Public Works spokeswoman Lisa Hiebert.
"As we're going through these first phases, we have more realistic numbers so we can set up the budget to recognize those expenses accordingly," Hiebert said. "The money's always been there — now we're just really identifying it more clearly in the budget."
The city collects a solid waste fee from all residents, which will cover about $2.8 million owed to haulers because of residents not paying their bills. Residents will eventually pay that money back in the form of property tax assessments, Hiebert said.
City officials expect that the cost of covering delinquent bills will eventually drop as residents get used to the new system, Hiebert said.
"The delinquent payments are kind of at the high-water mark, so to speak," she said.
The financial analysis also reflects that the city will pay for fewer mailers and other materials to educate residents about the new program and will hire two full-time and one part-time staff member to resolve complaints and deal with delinquent bills.
The budget amendment also includes money for the Department of Safety and Inspections to field resident phone calls related to organized trash pickup; the city previously contracted with an outside call center.