Ocoee commission approves one-time reserve transfer and $0.42 annual increase to residential solid-waste fee

The Ocoee City Commission on Aug. 5 approved a resolution raising the city's annual residential solid-waste fee from $3.02 to $3.44 per household and directed a one-time transfer from general-fund reserves to restore the solid-waste fund.

Commissioners heard a staff presentation outlining a multi-year shortfall in the solid-waste fund and an auditor's finding that the fund would show a material note in the coming audit if not addressed. Public Works Director Steve Krug and finance staff told the commission the fund faced a combination of historic operating shortfalls and accounting losses tied to the city's transition to a private contractor in 2019, plus an outstanding interfund loan for recycle carts.

Krug said the city was proposing two steps: a one-time transfer of $1,300,000 from general-fund reserves to true up the fund and a $0.42 annual increase per household (raising the fee to $3.44) to sustain operations, allow repayment of the interfund loan over five years and cover ongoing administrative costs. Krug noted Waste Connections, the current contractor, has a contract option extension and said the city will likely go out to bid before the contract expires in April 2027.

Commissioners and residents raised multiple concerns during the public hearing, including service reliability, recycling contamination, how recycling is handled by the contractor, and whether reducing or changing service levels could produce savings. Speakers from the public asked whether recycling could be preserved and requested clearer resident guidance about what is acceptable in recycling containers. Staff responded that Waste Connections takes loads to a sorting facility but that high contamination rates in the city's recycling stream reduce effective recycling and increase costs.

Several commissioners said they prefer to re-bid the contract next year to seek better pricing and service; the city manager confirmed staff intends to put the contract out for competitive bids. The commission also discussed operational steps to better monitor contractor performance, including work-order reporting and a staff review of route pickups.

After the public hearing, a motion to adopt the resolution passed (motion and second recorded in the meeting minutes; vote recorded as approved). The commission directed staff to include the one-time reserve transfer in the year-end budget true-up and to return with supporting backup for the transfer and the rate change.

The fee change will appear on billing as an annual solid-waste charge of $3.44 per household; staff said the change was structured to avoid affecting the city's millage rate and to avoid triggering an audit note. Officials said the city currently holds general-fund reserves (staff cited roughly $40 million in total reserves and about $35 million unrestricted) and characterized the one-time transfer as an appropriate use of reserves to correct an enterprise-fund imbalance.

The commission also directed staff to pursue contract re-bid options and to tighten operational oversight of Waste Connections performance, including follow-up on missed pickups and clarity about residential recycling contamination.

Residents and commissioners were reminded during the discussion that school starts the week following the meeting and to watch for students and increased school-area traffic.

Outcome: resolution adopted; staff to return with budget true-up backup and to prepare for future procurement and contract options.