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Florida city OK's $24M in tax credits after garbage settlement

This story was updated to correct an inaccuracy.

PORT ST. LUCIE — Property owners here will be receiving a credit on their property-tax bill, following the city’s $24 million settlement with its former trash hauler, Waste Pro of Florida.

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For most, the savings will show up on their tax bill this year. And some homeowners will be getting a bigger slice of the pie than others.

The City Council voted June 15 to return the full settlement to property owners, based on a tax-credit structure proposed by Mayor Shannon Martin.

The city sued Waste Pro in September 2021, alleging the company breached its contract by failing to meet agreed-upon standards of service.

Port St. Lucie fielded complaints of missed routes and inconsistent pickups for years, but they soared following the COVID-19 pandemic. In the first six months of 2021, the city received more than 7,000 complaints.

FCC Environmental Services replaced Waste Pro as the city’s trash hauler in May 2022 and was awarded a $450 million contract.

In April, days before a lawsuit was due to go to trial, the city and Waste Pro agreed to a settlement. As a condition of the settlement, neither side admitted fault or wrongdoing.

“From the beginning, I have maintained that the funds should primarily benefit the residents who had experienced trash service issues in 2021 and 2022,” Martin said.

“At the same time, it is very important to acknowledge the residents who moved here afterward,” she said. “These households have also contributed.”

The 57,242 residents who have owned the same home here since 2022 will see the $364 credit on their city tax bill this year. The 13,421 homeowners who moved here since 2022 — the year after Waste Pro was ousted — will receive a $64 credit.

Residents who moved from one house to another in the city since 2022 are eligible to receive the full $364 through a claims process.

The City Council was unanimous in its desire to award the $24 million settlement amount back to residents. Vice Mayor Jolien Caraballo, however, wanted reimbursements to be mailed as checks, instead of applied as tax credits.

Caraballo argued mailing a check, although more expensive, would be preferred because it would be quicker.

“We need to make it right, right now,” Caraballo said.

Mailing checks to 81,918 property owners, however, would cost about $200,000, city officials estimated.

The City Council voted 4-1, with Caraballo dissenting, to move forward with reimbursements through tax credits.

The council, however, was heckled by several of the roughly 40 residents in attendance, who said they would have preferred receiving paper checks instead.

Jack Randall is TCPalm’s economy and real estate reporter. You can reach him at jack.randall@tcpalm.com.

This article originally appeared on Treasure Coast Newspapers: Florida city OK’s $24M in tax credits after garbage settlement

Reporting by Jack Randall, Treasure Coast Newspapers / Treasure Coast Newspapers

USA TODAY Network via Reuters Connect

By Jack Randall, Treasure Coast Newspapers | USA TODAY Network

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