Rumpke, the region’s largest trash hauler and recycler, is in the process of amending area municipal contracts to cover the new gas tax in its rates.
On Monday, Franklin City Council approved an increase of nine cents per month, or an additional $1.08 per year, on the city’s trash and recycling rate for July 1 through Sept. 30, 2020 when the city’s current contract expires.
The city also has an one-year extension option on the contract that would run from Oct. 1, 2020 to Sept. 30, 2021.
That amount would generate about $4,104 more per year from Franklin’s 3,800 customers for Rumpke’s weekly trash hauling and recycling service.
Dean Ferrier of Rumpke told the council the increase includes five cents for trash hauling and four cents for recycling.
In a letter to Franklin officials dated May 29, Rumpke said it reviewed its equipment, routing and other resources needed to service customers. Rumpke then identified the average productivity per hour per stop and multiplied that by the tax impact per truck hour. It was then able to determine the tax impact per yard and average impact per stop.
Molly Yeager, a Rumpke spokeswoman, said this would not affect all municipal contracts, only those in which price adjustments can be made, and communities must still agree to the increase. The rate increases depend on the type and frequency of trash and/or recycling pickup service, she said.
“Not all municipal contracts are set up the same,” she said. “Moving forward, this will be something to look at in future contracts.”
Yeager said Rumpke has contracts for all municipalities in Butler County and most of Warren County.
Barb Wilson, West Chester Twp. spokeswoman, said the township hasnot received such notification for its commercial service from Rumpke. She said the township does not provide residential service and residents who contract with Rumpke would be notified individually.
Middletown City Manager Doug Adkins said there are no rate increases planned for 2019 and the city staff has not started preparing the 2020 budget yet.
“Our pricing is fixed through the end of this year when our current contract expires,” said Scott Tadych, Middletown public works director. “I suspect Rumpke will factor the gas tax increase in starting next year.”
Carlisle Village Manager Julie Duffy said the village’s current contract does not have an automatic increase in it. She said Rumpke has contacted the village about amending the contract to add nine cents per household per month for the new gas tax increase.
“We have not signed the amendment yet,” she said. “I need to reach out to Rumpke to verify a couple of things first.”
Monroe City Manager Bill Brock said no amendment was needed, as its Rumpke contract language allows for increases.
“We are analyzing the cost, but I do not believe an increase is warranted at this time,” he said. “A full rate analysis will be presented to the Finance Committee in the near future.”
Staff Writer Denise Callahan contributed to this report.
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