SUA hears NewGen 2025 solid-waste study outlining rate scenarios, operational options; no action taken

The Stoner Utilities Authority on June 16, 2025 heard an informational presentation from NewGen Strategies on a 2025 solid-waste study that updates the city's cost-of-service analysis, rate-design scenarios and an ordinance review. No formal action was taken; staff will return with recommendations at a later meeting.

The study, presented by Dave Yonke of NewGen Strategies and introduced by Matt Faulkner, Waste Management Director, examined collection operations, cost recovery and options to reduce costs or increase revenues. Yonke said, "Rates have not been raised for a while, and so you're under recovering." Faulkner told trustees a final report will be submitted after the city determines rate design or ordinance changes.

The consultant highlighted operational findings and potential savings. NewGen found the city's collection center is "well run" and noted potential savings of about $76,000 from adding a cardboard baler that would keep cardboard out of commingled recycling. Yonke said a baler would require a capital investment — he estimated a typical baler could range roughly "$50 to a $100" (transcript phrasing) but stressed life expectancy can span decades with proper maintenance.

On commercial collection, Yonke recommended investigating a transition from rear-load to front-load dumpsters to increase per-lift capacity and improve safety; that change would require purchasing new dumpsters and trucks. He said such a change is often amortized or leased (e.g., over three years) and might yield long-term savings but carries near-term equipment costs.

The consultant proposed two rate scenarios to close an identified revenue gap. Key numeric points discussed in the presentation included: the city's beginning reserve balance for fiscal year 2025 reported as about $3,700,000; a stated minimum reserve goal of $1,000,000; the current 96-gallon residential rate at $21.20 per month; and projected 2026 96-gallon rates of $23.11 under scenario 1 and $22.90 under scenario 2. NewGen's five-year forecast showed a 2030 96-gallon estimate of about $29.72 (scenario 1) or $29.17 (scenario 2). Yonke also recommended changing open-top (roll-off) pricing from a flat $330 pull to a $300 pull plus a per-ton disposal charge, and cited a disposal (tipping) rate of about $41.28 per ton in the examples shown.

Yonke emphasized inflation and higher equipment costs as drivers of rising rates, noting automated side-loader purchase prices can exceed $350,000 and, in other jurisdictions, can top $500,000. He said scenarios also included modest revenue offsets such as charging a dumpster recycling fee and implementing a fee for cardboard roll-offs where the service is currently not being charged.

Trustees asked clarifying questions during the presentation about baler capital costs, the mechanics of rolling changes into rate structure and benchmarking to peer cities. Faulkner and Yonke repeatedly framed the presentation as informational: "There will be no actions on any recommendations in this presentation today. It's merely informational. Staff will return at a later date for recommendations," Faulkner said.

Votes at a glance: With business limited to the consent docket and the study presentation, trustees recorded two formal procedural votes. At the start of the meeting a motion to accept the consent docket was moved by Trustee (mover) and seconded by Trustee (seconder); the presiding trustee announced, "With a vote of 5 to 0, the consent docket is approved." Near the end of the meeting trustees moved to adjourn the Stoner Utilities Authority; the motion and second carried with a vote the presiding trustee announced as "4 to 0." These procedural votes were recorded separately from the study presentation, which drew no formal motions for policy or rate changes.

The presentation continued a multi-year review cycle: NewGen previously completed the city's 2020 study and the firm was contracted again on Aug. 5, 2024, for this 2025 update. Yonke said the study included an operational assessment, potential new services, an updated cost-of-service study and an ordinance review. He recommended phasing rate increases to limit immediate large increases and to use reserves in the near term to smooth the transition.

Next steps: No policy decisions were made. Staff and NewGen indicated they will return with specific rate proposals and any ordinance amendments after trustees have reviewed the study details and given direction in future meetings.