Council declines to draw from solid-waste reserves to smooth rate increases

The Santa Barbara City Council narrowly rejected the option of using the city's solid-waste enterprise reserves to smooth an upcoming rate increase and instead directed staff to proceed without tapping those reserves.

Council Member Harmon, who had earlier supported smoothing at the sustainability committee, moved the staff recommendation against using reserves after weighing fairness and long-term reserve planning. Council Member Harmon said that subsidizing 12% of ratepayers with reserve dollars would be "not good planning" and ultimately offered the motion to keep the rates as proposed and preserve enterprise reserves.

Council Member Freeman and others said the decision avoids charging all ratepayers for services they do not use and that long-term planning demands the city keep enterprise reserves intact. Miss Neden (council spelling in record) abstained. The motion to direct staff not to utilize solid-waste reserves to smooth rate increases passed 6–1 with one abstention; staff estimated the choice results in $62,270 retained in the solid-waste fund.

What happens next: staff will implement the rate schedule as recommended and adjust the enterprise fund forecasts accordingly; council also asked that enterprise funds be part of the broader finance-committee review of reserve prioritization.