Solid waste fund near balance but relies on subsidy; contractor rate increases flagged as possible pressure point
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Summary
County staff reported solid waste as an enterprise fund that is ‘‘segregated’’ but historically received general fund subsidy. Commissioners discussed contractor rate increases and unpaid accounts as risks to the fund’s balance.
County staff told the commission that the solid waste enterprise fund is currently projected to be roughly balanced but continues to receive a modest operating transfer from the general fund.
Justin Reed explained that the solid waste operation is an enterprise fund segregated from the general fund and noted that last year the general fund subsidy totaled about $300,000; the draft FY‑26 budget reduces that planned subsidy to $167,000. The solid waste manager and staff warned commissioners about a contractor rate increase that took effect in FY‑25 (a cited 40% jump) and a possible additional annual escalation that might affect FY‑26; staff asked to confirm contract escalation terms.
A solid waste staff member, Michael (solid waste coordinator), asked whether his payroll allocation could be changed so that more of his salary came from lodgers tax rather than solid waste. Staff explained there are limits on administrative uses of lodgers tax and that the solid waste fund is currently balanced, receiving a small subsidy; moving payroll costs would simply shift the operating transfer amount rather than reduce the general fund burden.
Commissioners also discussed unpaid customer accounts in solid waste collections; staff said there were roughly 300 accounts with about $1,000 balances each in arrears and recommended improved collections and liens as potential ways to improve the fund’s bottom line.
Why it matters: Solid waste operations are designed to run as an enterprise fund, but when enterprise revenues and contractor costs change the fund can require general fund support. Commissioners asked staff to confirm contract escalation clauses and to pursue collections where appropriate.
Next steps: Staff will verify the contractor contract escalation terms and return with any necessary budget adjustments; staff will also present delinquent account reports and collections options to help forecast whether the operating transfer can be further reduced.
