Solid Waste Authority adopts FY2026 budget, approves assessment and tip-fee rates and assumes service-area merger

Mr. Dunkley, the authority’s chief financial officer, presented the proposed fiscal year 2026 budget and said staff recommends increases to cover operating, capital and debt service costs. The board approved the proposed budget and authorized staff to include the proposed assessment and tip-fee rates on the county’s Truth in Millage (TRIM) notice; the board carried the motion 7-0.

Why it matters: The proposed plan raises residential collection assessments and adjusts tipping fees to fund capital projects, operating cost increases and planned facility work. Those rate changes will appear on the property-owner notices that the county sends later this year.

Key numbers from staff presentation: staff said special assessments make up about 65% of the authority’s budget. For fiscal 2025 the board had set the single-family collection assessment at $194 per year; staff proposed raising the single-family rate to $277 per year under the current proposal (a staff-provided figure during the presentation). Dunkley said staff is proposing an average 7.6% increase to residential rates: single-family to $277, multifamily to $116 and mobile home rates to $198 annually. On disposal-side fees, staff recommended increasing the special direct landfill tipping fee from $65 to $80 per ton.

Budget trade-offs and debt: Dunkley said staff plans not to prepay debt this year in order to preserve reserves ahead of planned construction on a future facility (noted in materials as the ‘‘ref 3’’ project), which raises debt service expense and reduces the debt-service coverage ratio to about 1.69; staff said that remains within credit-rating guidance. Staff also asked to add two full-time operations drivers and proposed a 3.8% cost-of-living adjustment in personnel costs.

Service-area reorganization: As part of the budget assumptions, staff proposed incorporating Service Area 5 (the Glades area) into Service Area 2 because the City of South Bay’s contracting timeline did not align with the authority’s TRIM schedule. Paul Gonsalves, SWA staff, explained that because the South Bay award and protest window could extend past the authority’s schedule, staff recommends folding 5 into 2 for FY2026 and bidding the contiguous area together in the next seven-year contract. Staff told the board the change will reduce rates for many residents of the current Service Area 5 compared with extending the South Bay contract as a stand-alone area.

Other details: Dunkley said the proposed budget includes a capital program and a requested capital contribution of roughly $2.6 million from biosolids partners for an electrical distribution project. Staff also said disposal revenue is expected to grow significantly and proposed modest staff increases for operations.

Votes and motions: Commissioner Woodward moved approval of the FY2026 proposed budget and to continue public hearings as required; the motion, as amended to explicitly approve the assessment and tip-fee rates for the TRIM notice, carried 7-0. Separately, the board approved a staff request to transfer about $2.6 million from unrestricted reserves to the debt service reserve to meet coverage requirements; that transfer vote carried 6-0.

Ending: Staff will return in August with finalized contract and rate documents for inclusion on the TRIM notice and to present final bid documents before the solicitation goes on the street in September.