The new department was the fix for elected officials’ failure to plan for the local landfill’s continuation. The fees are high because the trash is picked up from the city’s transfer station and trucked to the Las Cruces landfill.
Residents are paying nearly $28 a month for weekly trash pick-up of 95-gallon poly-cart containers, the only size choice. In 2017 the City Commission passed an ordinance that raises service fees 5 percent a year, with no sunset. That’s 5 percent on top of 5 percent, or a compounded-rate increase.
According to Truth or Consequences financial statements, the service fees collected the first year, from 2013 to 2014, went from about $92,500 to nearly $337,000, a 264-percent increase.
From 2014 to 2015, fees collected went from nearly $337,000 to nearly $540,000, a 60-percent increase.
From 2015 to 2016, fees collected went from nearly $540,000 down to nearly $380,000, a 30-percent decrease.
From 2016 to 2017 fees collected went from nearly $380,000 to nearly $1,242,000, a 227-percent increase.
From 2017 to 2018 fees collected went from nearly $1,242,000 to $1,640,000, a 32-percent increase.
Even though the fees have gone up, except for the fluky 2015-16 year, they have not covered the cost of operations.
The people have paid a total of $4,230,820 in service fees since 2013, but operations costs were $5,054,943, according to city financial statements– a $824,123 difference.
Although all city enterprise or business-like operations are supposed to be self-supporting, the City of Truth or Consequences has transferred a total of nearly $3.6 million from the Joint Utilities Fund (Electric Department service-fees revenue) into the Solid Waste Fund since 2013 to shore up debt, operations and equipment costs, according to financial documents and City Commission meeting minutes.
In addition, the fee increases have not mirrored or matched operations costs, showing poor management and planning, with the exception of 2014-2015, in which fees increased 60 percent and costs increased 63 percent.
From 2013 to 2018, operations costs went from $148,692 to $456,920 to $742,874 to $1,133,236 to $1,298,669 to 1,274,552. The increases range from 207 percent to 15 percent a year. Costs dropped 2 percent from 2017 to 2018.
The City rejected subcontracting out solid waste services, claiming it could contain and control costs better than private companies, but that is not borne out by recent information.
Bill Radosevich, owner of New Mexico Waste Services, made a presentation to the Elephant Butte City Council on Aug. 21, 2019. He said he would charge $25 a month for weekly pick-up of a 95-gallon poly-cart, if they would pass an ordinance making waste services mandatory. He is currently charging $34 a month for 600 to 700 Elephant Butte residents, who may cancel at any time.
If Radosevich can give a $25-a-month rate for 700 regular customers, his rate for Truth or Consequences’ 3,500 regular customers would probably be the same or lower.
Truth or Consequences elected officials owe it to the people to reevaluate its solid waste services, giving a comprehensive report on why fees are climbing yet not covering operations costs. The City has also not regularly put out to bid solid-waste pick-up, trucking and tipping fees to ensure the people are getting the best rate possible.
The city has made a very poor showing of running a solid waste business. Privatizing the service or subcontracting it out should be contrasted with its costs over the last six years.