Sanitation department revenue up 5% in 2010

Revenue for the Fort Smith Department of Sanitation was up more than 5% in 2010, thanks to the addition in June of about 4,900 residential accounts.

Total revenue for the DOS during 2010 was $13.246 million, up 5.46% compared to 2009 revenue.

The 2009 revenue was down 10.8% — or more than $1.535 million — compared to 2008, but the 2008 comparison was difficult for several reasons. Most of the 2009 revenue decline came from landfill operations, with that sector down $1.06 million as a result of the combination of debris from 2008 wind and hail storms and the recession.

Total landfill tonnage during 2010 is 244,759 tons, down 5.3% compared to 2009. Following is a categorical comparison of revenue for the department.
• Residential collections: $4.049 million, up 8.95%
• Commercial collections: $2.323 million, down 3.1%
• Landfill operations: $4.514 million, up 7.53%
• Industrial collections: $1.979 million, down 4.44%
• Landfill gas: $278,266, up 132.26%
• Recycled products: $101,604, up 81.2%

Joseph Hopper, division manager for the DOS, confirmed that picking up the residential accounts is the source of the $332,970 in increased revenue for the residential sector. The estimated 4,900 new residential accounts were initially estimated to generate about $380,000 in revenue in 2010 and almost $817,000 in 2011.

The Fort Smith board of directors voted Nov. 3, 2009, to end a sanitation contract with Altes Sanitation and pull all the city’s residential collection under the Fort Smith Department of Sanitation. At the time, Altes was the only third-party trash service handling residential waste in Fort Smith, with the DOS handling 82%, or the other 20,820. accounts.

Hopper said the 5.3% decline in total tonnage is a good and bad figure.

“One of the goals of solid waste reduction and recycling is to reduce the use of landfills and extend the life of existing landfills. Landfills are scientifically engineered systems that are very expensive to obtain, operate, and maintain,” Hopper explained.

In 2010, the Fort Smith Landfill was expanded by 12.5 acres at a cost of about $155,000 per acre. Therefore, prolonging the life of the new disposal area is a priority.

“However, the other side of the good/bad coin is that solid waste disposal is necessary to generate the revenue needed to support ongoing operations and future expansion,” Hopper said.

Fort Smith has one of the largest landfills in Arkansas and Oklahoma. The landfill, which benefited from receiving former Fort Chaffee property, has a lifespan of more than 65 years and encompasses 1,102 acres.

The landfill is unlikely to fill up soon with industrial collections. Industrial collection revenue, down 4.4% in 2010, is down 17.3% since 2006.

“The decline in our Industrial Collections Division is primarily due to declines in manufacturing and less business from home builders and remodelers. It is hard to say whether or not our manufacturers have increased their recycling efforts since many of them accommodate their own recycling of corrugated cardboard and metal,” Hopper said when asked about the decline of industrial collections revenue.

Revenue from landfill gas was up thanks largely to a royalty increase from 6.5% to 10%.

The Fort Smith DOS is self-supporting and operates under an enterprise fund, which means operations are financed/funded by user fees and conducted in a manner similar to those of private business enterprises to provide services on a continuing basis to the public. The DOS does not receive revenue from taxes and is not allowed to make a profit.