Revenue Generation

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Unformatted text preview: n by the LGU in 1989, when garbage fees were established. It serves 31,152 residential and commercial clients. There has been a 33% increase in the number of clients since 1994. This is largely attributed to the fact that the garbage fee is administered as part of the electricity bill, and as the number of electric connections increases, the number of clients who pay the fees also increases. In 1997, new garbage fee ordinances were passed after eight years. The department has tripled its collection and reduced its annual deficit while maintaining 98% collection efficiency for the year. The fees are based on the basis of ability to pay, residential versus commercial, type of enterprise or use, and type of garbage (rather on the amount of garbage generated by the household or an establishment). The system of including the fees in the electricity bill minimizes the cost of collecting and enforcing fees. 5.2.1 Problems with Cost Recovery Although the garbage collection function of ESMO is supposed to be self sufficient, it faces large deficits, which have to...
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This document was uploaded on 01/27/2014.

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