/3.

this service (C.P.R., condominiums, etc.) and also from those business premises
that are a vecelving a service in excess of their annual contribution by way
of taxes, Offsetting this $30,000.00 revenue figure, the Engineer has advised

that commercial and industrial pick-ups comprise approximately 1/5 or more of
the total anaval cost of garbage collection. This cost amounted to over $40,000.00
in 1975 and approximately $50,000.00 according to the 1976 Budget. In other
words, there was in fact a deficit in the commercial collection operation of

anywhere from $10,006. to $20,000.

I believe it was the Finance Committee's feeling that:
1. -It was not advantagious to expand further into the garbage collection field

by offering container service and that we should let the existing commercial
contractors expand to fi11 this void, and that the City should withdraw from

picking up extra commercial Barbage and provide only the basic three cans per

week pick-up,

2. Institute the Separate annual charge for garbage collection to relieve the
double taxation problem from the non-users.

3. Keep the charge on the Tax Bill as a separate item (similar to the way in

which Local Improvement Charges are placed on the Tax Notices at the present
time). The Committee felt that at the present time, most taxes are paid along
with mortgage payments whereas if the amount was added to the annual Sewer and
Water Bill it would have to be raised by the taxpayer and paid in either one

or two installments during the year.

As pointed out earlier, the use of special charges is designed to improve the
Property Tax and to let the property finance works of general benefit to all
proerty owners. The special charge is just another form of revenue. It is

true that if the City's annual Budget had been finalized and the exact Mill Rate

known for 1976 and then it was decided to impose a special charge of $24.00
direct reduction of the Mill

per_year on the users of the garbage service, a
Rate in the amount of 2.5 Mills could be made and all properties within the City
would benefit by that tax reduction. Those properties utilizing the garbage

collection service would pay for their service by way of the special charge
of $24.00 per year. With the pressures being exerted or the City's resources
at the present time, it is not likely that there will be any reduction in
Miil Rate due to the special charges being added this year.

I should point out that we are not talking about a cost that is particularly

onerous, the cost is about 2.5 Mills per year. As I pointed out earlier,