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Consultant recommends 4% annual solid-waste rate increases for FY26–30; no mid‑year action needed for FY25
Summary
The city's consultants concluded the FY24 solid-waste increase was appropriate, recommended no additional FY25 rate action, and proposed a 4% annual rate track for fiscal 2026–2030 to maintain target cash balances and pay for an added operator and truck.
Finance Director Lou Vitola presented the results of a third‑party solid-waste financial projection study and told the Finance Committee that the consultant recommended a 4% annual rate track for fiscal years 2026 through 2030 and found the FY24 increase appropriate.
"I'm happy to report, that the review about the '24 increase of the extra $1 per residential account was viewed as necessary and fair," Vitola said. He explained that the consultant reviewed the FY24 change (from $1.20 to $2.20 per residential account as reflected in the prior rate track) and judged it appropriate given actual costs and prior assumptions.
The consultant recommended no additional rate action for fiscal 2025, Vitola said. The proposed five-year plan calls for 4% adjustments each year beginning July 1, 2025, to carry the utility through fiscal 2030 while maintaining minimum targeted cash balances. Vitola pointed to the packet (page 36) that shows the 4% track and projected cash balances staying positive over the period.
The study also supports adding an equipment operator in fiscal 2026 and funding a replacement truck; Vitola said the plan moves the fleet toward a five-unit operating configuration and will use replacement funds for the 2017 vehicle in the near term.
Vitola said consultants (identified in the packet as UFS) will present the findings to the City Council at one of the February meetings and that staff will publish the consultant exhibits and Q&A with the council presentation. He asked committee members to submit any questions in the coming weeks so staff can circulate answers to all members.
Committee members asked for additional exhibits and clarification on timing; Vitola said he will ask the consultant to provide the requested exhibits and that staff will memorialize Q&A for distribution with the council presentation.
No committee vote was required on the study; the consultant's recommendation will be presented to council for formal approval of any rate adjustments.
