University City task force recommends 8.45% solid-waste rate increase; council to consider ordinance Feb. 24

At a Feb. 10 study session, the University City City Council received a report recommending a proposed solid-waste rate increase that would raise the typical single-family 90-gallon refuse charge by 8.45% in 2025.

The recommendation comes from a task force convened by the council and based on an updated rate study by MSW Consultants; the task force unanimously approved “Option 2” on Jan. 22, 2025. Finance Director Keith Cole presented the task force’s findings and the recommended rate schedule to the council on Monday.

Under the Option 2 scenario, the standard 90-gallon single-family rate would increase from $110.10 to $119.40 every six months — a $9.30 rise the city equated to roughly 5 cents per day. The senior six-month rate would move from $93.30 to $101.40, an $8.10 increase (about 4 cents per day). Cole said the discussion focused on single-family accounts because they make up the city’s largest group of customers: “we focused on the single rights because that’s our bulk. We have over 8,000 accounts,” he said.

The task force considered three options: a one-year rate increase with no annual Consumer Price Index (CPI) adjustment; a one-year increase with CPI increases (Option 2); and a three-year phased increase with no CPI adjustments. The task force voted unanimously to recommend Option 2, according to Cole and task force materials.

Council members and staff discussed the city’s longer-term finances and the sufficiency of the proposed increase. Councilmember Fuller noted the study projects continuing deficits under the recommended plan: “even though if we adopt option 2, it shows that we’ll still have a deficit, and it’s probably the least deficit of all 3 plans to the tune of around 400,000 a year starting. Well, it starts off at a hundred thousand, but it jumps up to 300,000 in ‘27,” he said, asking whether a slightly higher rate now could eliminate future subsidies.

City Manager Rose cautioned that other new obligations affect the city’s revenue needs, including a recently approved $27 million debt issuance: “we have a $27,000,000 debt that was recently approved, for the police station as well as the Trinity, court building that will need to be retired,” Rose said. Rose also noted anticipated revenue from the Markets at Olive development and related projects that could offset some city costs, including a detention-basin project that will require roughly $4 million in local matching funds.

Councilmembers pressed staff on several operational details. Mayor Pro Tem Smotherson asked whether commercial customers would continue to be served and whether residential customers were subsidizing commercial service; Cole and staff said ensuring commercial is not subsidized by residential was a “clear message” from the task force and would be reflected in the staff report. The presentation said commercial rates would be brought in line with market rates.

On service details, Councilmember McMahon asked whether yard-waste bag-sticker programs, leaf collection and equipment costs were included. Cole said those services are included in the cost base and that staff’s recommendation would be to discontinue the separate sticker program. Councilmember Fuller asked whether the city could offer quarterly billing instead of the current six-month billing; Cole said he would check the city’s accounting system feasibility and report back.

Next steps: Cole said staff intends to place an ordinance on the council agenda for introduction on Feb. 24, 2025. No formal council vote on rates took place at the Feb. 10 study session; the item was presented for council consideration and staff direction.

Task force membership and study history supplied the background for the recommendation. The council approved Resolution 2024-10 on Aug. 12, 2024, creating the task force. MSW Consultants originally completed a full cost-of-service rate study in February 2019 and updated that work in February and July 2024; the task force met Dec. 17, 2024, and Jan. 22, 2025, before issuing its recommendation.

If the council votes to introduce an ordinance on Feb. 24, the ordinance introduction would be the formal step to schedule future hearings or readings required to adopt a new rate schedule.