Thompson Sanitary seeks double‑digit reset tied to franchise operating ratio; commissioners raise migration and dumping concerns

Thompson Sanitary presented a rate request May 7 that company officials said stems from franchise contract operating‑ratio rules and a series of cost pressures, including higher equipment prices and lower revenues from major customers.

Rob Thompson, president of Thompson Sanitary, and controller Walter Budzic reviewed 2024 results and a projection for the July‑to‑June rate year. The company reported collecting more than 13,700 tons in 2024 with the county representing about 10 percent of its overall operation. Thompson said revenue fell from a major customer and overall hauling activity declined; at the same time equipment costs rose sharply ("the cost of a truck [rose] from about $260,000 in 2020 to $390,000 in 2025"), and capital acquisition timing created pressure to purchase multiple trucks in a single year.

Thompson said its 2024 operating ratio was high (company cited 99.4 percent) and projected next‑year results outside the franchise range (98.1 percent), which triggers the franchise clause to reset rates to an 88 percent target; the company calculated an 11.1 percent increase would be required under that reset. Commissioners noted migration risks: higher rates could push customers to change services or to illegal dumping; Thompson said migration and illegal dumping were concerns the company is trying to mitigate through education and transparency.

Commissioner Miller and others thanked Thompson for detailed documentation and asked about coordination on landfill capacity and policy at the state level; Thompson said the company is tracking Coffin Butte and legislative developments and asked the board to consider the request when it returns to the agenda in two weeks. No formal vote was taken at this meeting.