Beach officials weigh prospect of charging for garbage pickup

VIRGINIA BEACH

Want to make Mayor Will Sessoms squirm? Ask him about the possibility of a new citywide trash fee.

"What trash fee?" he likes to joke.

But with the city facing a $41 million budget shortfall, charging homeowners for garbage pickup is a seductive option.

Virginia Beach and Suffolk are the only cities in South Hampton Roads without a separate trash collection fee.

Creating a new $8 monthly fee is an especially sensitive topic at City Hall because of the depressed economy, which has reduced property values, tourism spending and jobs.

Behind the scenes, officials have outlined one approach designed to save city jobs, according to staff e-mails obtained through a Freedom of Information Act request.

Under an e-mail string with the subject heading "Restoring Positions with Waste Management Fee," budget officials discussed how the trash fee could "buy back" eliminated positions.

"That concept has been bandied about at the staff level, but so has a lot of other stuff," said Catheryn Whitesell, budget director. "I can tell you that none of that discussion is happening at the city manager level, that I'm aware of. Not to say it won't, but it hasn't happened as part of the budget process."

The city is contemplating layoffs for the first time in years. Some employees have been notified that they might lose their jobs. City officials have declined to say how many.

The average cost of a city employee, including benefits, is $65,112. For instance, an $8 monthly trash fee could pay for about 175 jobs.

The minimum charge officials are floating is $96 a year, which could start as early as July. That would raise almost $12 million annually. The city's trash and recycling program costs $31 million, which to fully fund would cost home-owners $21.40 a month.

City officials are researching the technical issues of adding the fee to the existing water, sewer and stormwater bill.

Another argument for a fee is that because apartment building and condominium owners, who pay real estate taxes, do not get city trash service, providing free city service to other property owners is unfair.

The groundwork for this position was laid in July when city officials cut off trash service to some condo and apartment complexes that had inadvertently been getting it.

A third argument is that uncertainty about the future of the Southeastern Public Service Authority, which handles most of the region's trash, may force the city to think about expanding its own landfill. Doing this would cost money, which could be raised with a trash fee.

"It's wise for us to start thinking about having options," Vice Mayor Louis Jones said.

But Jones, like many City Council members, including Sessoms, said it's too early in the budget process to take a position on a trash fee. City Manager Jim Spore will present his proposed budget in March.

Councilman Bill DeSteph said he's "100 percent against" it.

"The added fee is just crazy," he said.

Councilman Bob Dyer said, "Whether it's a garbage fee or raising the tax rate, we have to be real careful in this economy not to bankrupt citizens."

Raising real estate taxes to offset falling property values is another option the City Council has discussed to close the budget gap.

Some said that might be preferable to a garbage fee because a tax rate increase can be rescinded if the economy improves.

"Once they institute a fee, it will never go away. It will only go up," said Sam Reid, president of the Council of Civic Organizations, who said he was not speaking on behalf of the group.

Also, while real estate taxes are tax-deductible, trash bills are not, Reid said.

"If there's going to be an increase," he said, "it should be in the real estate tax, because you can write it off for federal taxes."

Aaron Applegate, (757) 222-5122, aaron.applegate@pilotonline.com