A few Warrenton residents Tuesday night spoke out against proposed changes to eliminate free trash service for residential properties, but others also noted the difficult financial times facing the city.

Around 20 residents attended a public hearing to offer input on the possible future changes to trash service. Aldermen are considering repealing free residential trash service, an amenity enjoyed by residents for more than 30 years, due to budget constraints worsened by declining revenues and escalating costs.

Currently, only commercial properties are required to pay for trash service.

However, due to a $504,877 shortfall in the general fund budget that is being offset by transfers, city officials say removing the largest line-item expense would provide some relief to belt-tightening that has already occurred in the budget.

Afterward, some aldermen said they wanted to speak more with residents about repealing the free trash collection prior to any formal action being made. No timetable has been discussed on when a possible change could be made.

“It’s a money crunch time,” Mayor Greg Costello said. “We don’t have the ability to make money.”

The possibility of dropping free trash service has irritated some residents who say the service was promised decades ago and others who are living on fixed incomes.

Former Alderman Tony Van Boone, who served on the board from 1980-82, recalled his tenure when board members chose not to do away with the free collection because of the belief that city funds were earmarked to cover the expense.

“It might not have been written in the ordinance specifically, but that is what they had the thing designed for and what it was supposed to be used for,” he said. “It’s just another way to get around raising taxes. As far as I’m concerned, you might as well raise the taxes because it’s the same difference. You will take dollars from one hand and put it in the other.”

According to city records, a 1 percent sales tax was passed by voters in April 1977, but the ballot language did not specifically state that funds were to be dedicated to pay for trash service. Aldermen later approved an ordinance on Nov. 1, 1977, to provide free trash pickup and awarded a trash contract the following month that went into effect Jan. 1, 1978.

In April 1983, a number of proposed rate changes were voted on, but the lone one to win approval was increasing massage parlor fees.

Responding to prior statements that free trash service was promised to residents, Costello said the city has not found any records to back up those claims.

“However, if we did find that, you need to understand whether it’s at the state level, the county level or the city level, this board of aldermen nor any of the previous boards can lock a future board into something that they decide to do,” he remarked.

Based on the August billing under the current contract with Wilson Waste Hauling, which expires in December 2011, the city is paying $346,143 annually for trash service. Of that amount, the expense was broken down as follows: residential ($257,040), multifamily apartment complexes ($45,720), residential senior ($832) and recycling ($33,399).

Since reviewing the trash situation, city officials have long touted the current contract as lower than all nearby municipalities. It’s expected, however, that monthly rates will climb to $10 to $12 per unit once the current contract expires.

During the current 2010-2011 fiscal year, the city is facing a $504,877 shortfall in the general fund budget, an area hit hard over the past couple of years due to a drop in sales tax revenue. To offset the deficit, $594,112 has been transferred from several areas, including park management fees ($165,965), tourism special events ($58,247), cemetery costs ($1,900), capital sales tax ($185,400) and water/sewer fund ($182,600).

“We’re not the federal government,” Costello said. “We can’t continue to do that for a long period of time.”

In the past two fiscal years, the city has seen sales tax revenue decline by approximately $285,000 in the general fund and seen other taxes, permits and license fees drop by around $60,000.

While some questioned the city about its finances, Costello pointed out areas at Tuesday’s public hearing where the city is realizing cost savings, including eliminating nine staff positions and reducing the hours for a 10th, a combined reduction of $36,000 from the line-item budgets of department heads and saving $11,000 annually by moving the police department to 12-hour shifts.

He also noted several areas where the city is striving to save on energy costs and other operating expenses.

Under the city’s current contract with Wilson Waste, the monthly fee for a residential unit — or “hand stop” — is $8.75, including multifamily units that don’t use dumpsters. For multifamily properties with dumpsters, the monthly charge is $7.50 per unit. The fee is $8 for residential senior units.

The city also incurs an additional $2.25 monthly fee for residents who choose to recycle.

Should the city begin charging residents for trash service, an administrative fee will likely be added to cover the city’s expense for billing.

Also at Tuesday’s hearing, some of the discussion focused on an ordinance  approved in July that will allow the city to charge all nonowner occupied properties, including multifamily and single-family residence for trash service beginning Jan. 1, 2011. 

Teresa Scott and Dorothy Heidbrink spoke out against the ordinance, saying it was unfair for single-family rental properties. They questioned how the city could charge one property when one next door is getting free trash service. 

“We are establishing renters as a different class of citizens,” Scott said.