With the new minimum wage legislation, the Dorset waste partnership will have to find an extra 383,000 pounds.
This is a prediction based on the expected meeting this week. The partnership may have to disrupt its financial plans as it will have to use part of their 1.2-million-pound reserve money to take care of a shortfall in their budget.
The budget shortfall is at the moment predicted to amount to about 74,000 pounds, that is, at the beginning of April which is the start of the new financial year.
Previously, the budget shortfall was predicted to cost the partnership 180,000 pounds of its reserved funds.
The Dorset Waste Partnership is owned by seven councils in Dorset that work together to offer waste recycling and cleaning services in Dorset. It started the program in 2011 but fully implemented it in 2015. The program serves close to 203,000 households in Dorset county.
The partnership is reported to have an annual budget of about 33 million pounds.
DWP says that the budget shortfall was as a result of unpredicted high spending on various elements such as increased fuel cost and increased maintenance of vehicles especially buying of spare parts. Another cause is the price fall of recycled products internationally. These downfalls have cost the company over 664,000 pounds.
However, besides the budget shortfalls, DWP has been able to save some few pounds thanks to reduced waste levels that are below what the partnership was expecting. This has reduced the cost of operation, especially in the transport department. The garden waste scheme income has also eased financial pressure for the partnership with improved income than anticipated.
A report made available to councilors on January 17 showed that waste services in Dorset cost each household 140 pounds compared to the 171-pound incurred by residents of Wiltshire.