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Solid waste fund holds working capital while contract and compliance costs rise; automatic collection pilot planned
Summary
Finance Committee reviewed the solid waste fund showing roughly flat FY25 revenues, a FY26 budget increase driven by contract costs, and a planned pilot for automated collection in July 2026. Staff warned the fund’s balance will remain under target in later years without adjustments.
City staff reported to the Finance Committee on June 2 that the solid waste fund finished FY25 roughly on budget, but FY26 will show higher expenses tied to contract increases and pay‑as‑you‑throw compliance costs; a pilot for an automated collection system is scheduled for July 2026.
Highlights from staff presentation: FY25 revenue is flat to budget. The FY26 revenue budget increases by about $139,000 (3%), driven by dumpster rate increases and a $45,000 transfer from the general fund related to downtown services. Expenses in FY26 were projected to rise by about $232,000 (5%); staff said the solid waste contract itself accounts for roughly $215,000 of that increase and professional services for pay‑as‑you‑throw compliance (camera equipment and software) add about $18,000.
Pro forma: the solid waste pro forma shows a FY25 budgeted loss of $835,000 with the FY25 estimate coming in $32,000 better; the FY25 estimate produces an ending working capital of about $2.9 million. Staff warned the pro forma balance falls below target in later years and that council review of program outcomes following the automatic collection pilot will be necessary before program expansion or new rate action.
Program direction: staff noted the department plans a pilot program for automatic collection starting in July 2026 and recommended the Solid Waste Advisory Committee and council monitor outcomes before further action.
Ending: no vote was taken on new rates February 6; staff will return with pilot results and any recommendations for bag rate or service changes.
