Sanitation rates proposed to rise 15% as fund lacks reserves and faces rising tipping and fuel costs

At the budget workshop, consultants reported the city’s sanitation enterprise is under financial strain and recommended a 15% increase to residential solid-waste rates in 2026 followed by about 6.5% annual increases thereafter. Henry Thomas, the presenting financial consultant, said the fund currently has essentially no cash reserves and that without rate action the city would be unable to replace vehicles or sustain operating service levels. Thomas said the sanitation fund serves about 21,400 customers with historical growth near 1.8% per year. The five-year capital plan for sanitation is roughly $6.8 million and is focused on vehicle replacement and fleet expansion; the consultant model assumes those purchases are fully rate-funded. Operating expenses are projected at about $7.1 million in 2025, with labor, insurance and fuel cost escalations built into the forecast and county-estimated tipping fees rising steeply in the near term. To address the shortfall, the consultant proposed a market-based approach to commercial rates so municipal commercial charges align more closely with private providers and regional municipal peers. For residential customers the example shown moves the typical monthly bill from $23.13 to $26.60 under the proposed 15% first-year increase. Thomas emphasized that, at existing rates, “you wouldn’t be able to fund any new vehicles,” and by 2027 the fund would be forced to reduce operating levels or staff to stay solvent. The council discussed service-level differences among nearby jurisdictions (for example, twice-weekly pickup in Winter Garden) and asked staff to provide comparative tables. Staff and the consultant said they will include updated competitive-rate information before the adoption hearing. No final ordinance was adopted at the workshop; the council provided consensus to proceed with notices and to return for formal action in September.