Warrenton residents have enjoyed free trash pickup for more than three decades, but due to budget constraints, city officials said it may be time for all property owners to pick up the tab.

A public hearing has been scheduled for Tuesday, Sept. 21, at city hall to allow property owners and residents to express support or concerns about possible future changes.

The meeting will be held from 5:30-6:45 p.m., prior to the start of the regular board of aldermen meeting at 7 p.m.

Currently, the city provides free trash collection service for all residents. Only commercial property owners are required to pay for trash service.

Based on the August billing under the current contract with Wilson Waste Hauling, which expires 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).

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).

Eliminating the free trash service is likely to rankle residents who have grown accustomed to it over the years. In fact, at past aldermanic meetings, it’s been argued that the free residential trash was promised to residents when voters approved a city sales tax.

However, city officials say that’s not true. Voters approved a 1 percent sales tax in April 1977, but the ballot language did not state that funds were to be dedicated to pay for trash service. 

According to city records, aldermen approved an ordinance Nov. 1, 1977, to provide free trash pickup and a trash contract awarded the following month 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.

At that time, the city’s annual trash bill was $4,000. Last month’s billing for multifamily properties in the city — 508 units at 15 complexes — was $3,810.

“Where I came from, you always paid for trash,” Ward 2 Alderman Beth Kendall said. “I couldn’t believe the city didn’t charge for trash. It’s like my family budget, if we can’t afford it that month, we don’t go out to eat. We don’t go on vacation. If we can’t afford it, we don’t do it. Period.”

The Aug. 31 work session was primarily held to discuss whether owners of multifamily units could opt in or out of utilizing the city-provided trash hauler. In July, the board passed an ordinance to allow the city to charge all nonowner occupied properties, including multifamily and single-family residences for trash service beginning Jan. 1, 2011.

However, after reviewing the financial situation related to trash service, discussion transitioned into whether the city can keep footing the bill as revenues decrease and the annual expense climbs.

Director of Operations/Finance Officer Terri Thorn said the trash service is the city’s biggest line item expense, but compared to other nearby municipalities, Warrenton’s trash rates are some of the lowest around. She expressed concerns to the board that future bids will likely be higher. 

“You can’t continue to fund a $500,000 loss moving forward,” Thorn said. “This is at our current contract. Heaven forbid we bid this out and go from $8.75 to $12. Now we’re at a $750,000 loss on the year.”

City attorney Chris Graville said Warrenton was one of only two cities in the St. Louis metro area — with Oakland being the other — that pays for residential trash service. Ward 2 Alderman Fred Flake recalled a statewide survey conducted several years ago where fewer than six cities offered free trash service.

“I think it’s been a great thing, a good run,” Flake said. “Due to the economic situation, our revenues went down and the bill went up from $4,000 to $28,000 a month. This thing has mushroomed where we are pushing off projects in order to keep paying for free trash. We have to make a decision that makes sense for everybody.”

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 proceed with charging residents for trash service, an administrative fee will likely be added to the monthly water and sewer bill to cover the city’s expense for billing.

Ward 1 Alderman Dan Dieckmann reiterated a previous statement he made that the funds earmarked annually for trash service could be used elsewhere, such as expanding the city’s park system, building more sidewalks or to build a recreation complex.

“Going forward, is it (free trash) the best possible amenity we can offer?” Dieckmann remarked.

Many aldermen felt input was needed from the public. It was also acknowledged by city officials that the budget needs to be reviewed further for other reductions or cuts.

“They (residents) should have an opportunity to voice their opinions,” Ward 3 Alderman Don Broering said.