By THOMAS GRILLO
Despite a new trash fee that is expected to raise more than $2 million, the revenue may not be enough to spare layoffs.
“We’re still not where we need to be, budget wise and we can’t guarantee there will be no layoffs,” said Peter Caron, the city’s chief financial officer. “What we’re saying is if we didn’t get the trash fee, we might as well lay 40 people off right now. If there are potential layoffs down the road, it will be less than what it could have been with the new revenue.”
On Tuesday, the City Council voted unanimously to adopt a garbage collection fee. Under the measure, a fee will be collected on any non owner-occupied unit. Starting next month, businesses and nonprofits would pay about $40 a month while owners of multifamily dwellings would be charged about $12 per month on each apartment they do not occupy.
Caron, the City Council and Mayor Judith Flanagan Kennedy have been working for months to fill a $5 million budget hole. Last month, the council adopted a local meals tax over the mayor’s objection. The new tax is expected to raise as much as $700,000 annually for the city. In addition, on Tuesday the council approved the sale of more than four dozen foreclosed single-family homes, condominiums, and vacant lots that could raise $4 million.
In addition, when the tax rate is set later this year, real estate taxes are expected to rise by 2 1/2 percent, plus revenues from any new construction. Last year, the city raised $121.5 million in taxes. That number is expected to rise by nearly $5 million in fiscal year 2018 which starts on July 1, according to Caron.
“There are still budget issues that must be addressed in order to fully balance the budget,” Caron said. “The trash fee by itself does not balance the budget, but it buys us some time to examine other options.”
Thomas Grillo can be reached at [email protected].
