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Superior council approves 2013 landfill budget after officials flag deficit and hire consultant review
Summary
The Superior Common Council approved the 2013 landfill budget despite a projected deficit driven by a costly Cell 5 expansion and lower tonnage; officials said they will bring options to the council after a free consultant review and internal analysis in the spring.
The Superior Common Council on Jan. 15 approved the 2013 landfill budget after Finance Director Vito told the council the utility is carrying a deficit "of, oh, I think it's a couple 100,000." The council voted to approve the budget by voice vote.
The deficit stems from cost overruns on a major capital project, known in the meeting as "Cell Number 5," and a decline in waste tonnage, Vito said. "We used to have a contract with the district that brought in about 125,000 tons of waste a year. That's now down to probably 95,000," she said, adding that revenues have fallen as a result.
Why it matters: the landfill is a self-supporting utility; sustained deficits could affect future rates or capital planning. Vito said the utility is not "out of cash" but that the city needs to address the situation before it worsens.
What officials will do: Mayor Hagan told the council a consultant, Bob Larson, a Superior native and landfill expert, has offered to review the city's materials at no cost. Vito said staff will meet internally and keep the finance committee and council updated during the first three months of the year, and "beginning in we're estimating April, May, June time frame, bring some of these possibilities of solutions to the council and see what the council would like to do at that point." The city expects to present options for council consideration in that timeframe and aims to avoid a deficit in the 2014 budget.
Councilors and staff also noted a rise in recycling collections as one factor reducing landfill tonnage; a staff member referenced work by Chris Bronson and estimated about "70% compliance" with proper recycling collection compared with earlier years.
The council took the budget up as Item 7.1; a motion to move and a second carried on a voice vote.
Next steps: staff will complete the consultant review and return to the finance committee and the council with scenario analyses in the spring. No formal rate changes or policy decisions were made at the Jan. 15 vote.
