Rate increase, new collection policy possible for trash service

The Guam Solid Waste Authority is also struggling to cover its costs. It's also eying a possible rate increase, or a new mandatory residential collection policy.

In a presentation today for the Islandwide Beautification Task Force, GSWA general manager Larry Gast said the pandemic, and the resulting plunge in business activity has hit the agency hard. "The commercial tonnage you can see was running along pretty even, and then when March hit commercial tonnage bottomed out," he explained.

Gast says it's on commercial business that they make money. On residential, they actually lose money. According to their latest financials, GSWA ended the last fiscal year more than a million dollars short.

GSWA chairman Andrew Gayle says the board's been looking at various ways to make up the shortfall. They include federal grants, making residential collection mandatory, and yes, a rate increase.

He explained, "The third-party audit said, 'Look, you gotta adjust rates'. The PUC saw it. I talked to a PUC commissioner and he says, 'Man it's pretty obvious the way they wrote the report, if something isn't done, you don't either change your rates or implement this mandatory collection you guys are gonna be insolvent, so...'

"The receiver, they didn't change rates for ten years, they didn't set aside enough reserves, and we find ourselves in this position. And now they're ready to get out of here, so we need to be able to figure out how we can remain solvent and go forward, and what are the ways to do that."

Lieutenant Governor Josh Tenorio says the administration knows they need help, be it through raising rates or an offset of the $5 million in annual debt service GSWA pays to fund the upkeep of the old Ordot Dump and the Layon landfill."

"And the reality is that no matter what we do, either path seems to me, seems to need an infusion of capital somehow," he continued. "And if it's not additional rates is it going to be additional subsidy from the general fund? Those are things that we have to basically work on and iron out."

Tenorio says the administration also favors mandatory trash collection, but will need the Guam Legislature to pass a bill to get it done.