Council hears details on Boswell landfill expansion and Mars collection operations

Beatrice City Council members at a work session heard a detailed briefing on the Boswell landfill and Mars collection operations, including recent tonnage growth, finances and a planned landfill expansion that officials estimate at about $13 million.

City staff said Boswell’s operations have changed since a 2014 decision to open a new landfill cell on the south side of town. From 2004–2016 Boswell averaged about 22,000 tons a year; from 2017–2024 the site averaged roughly 45,000 tons annually. The city credited part of that increase to a 2016 contract with Seneca, which brings in approximately 10,000 tons per year, and to additional haulers contracted to deliver material to Boswell.

The nut of the briefing was financial: staff described historical break-even costs per ton and how higher volumes lowered unit costs. The landfill’s break-even point was cited as $58.27 per ton in 2008, fell to about $25.18 per ton in the 2017–2020 period after increased tonnage, and staff estimated a current break-even near $27.84 per ton once the planned $13 million expansion is included. Officials said Boswell was debt-free at the end of 2024 after paying off outstanding bonds and lease obligations.

Mars, described by staff as Boswell’s largest customer, averages about 16,500 tons a year (roughly 39% of Boswell’s tonnage). Staff reported Mars posted positive operating income in 2022–2024, and that Mars has two outstanding debts: sanitation bonds issued in 2021 with about $1.9 million remaining and an all-in interest rate of about 1.3% that run through 2031, plus a 2022 lease-purchase for a collection truck.

Officials said the planned Boswell expansion includes earthwork, buildings and equipment and that the city is working with a rating agency this month, with bond issuance targeted for early February and construction likely to begin around June after equipment lead times. Staff also said they expect the new landfill’s usable life to be about 70 years and noted that state rules require a closure and a 30-year post-closure monitoring period. The city currently deposits about $200,000–$300,000 a year into a closure/post-closure fund to meet the state’s financial-assurance expectations.

Council members questioned how the city’s residential garbage billing interacts with Boswell charges. Staff said the current residential rate for Beatrice is $20 (since October 2022) and that the bill combines sanitary collection and a landfill-related charge. Staff supplied historical figures: in 2020 the sanitary collection portion was about $10.30 and the landfill portion about $7.70. Council members pressed staff on how contract terms with neighboring towns affect the city’s ability to raise rates for local customers; staff noted some interlocal contracts lock in prices for specified terms while other communities can be added under current contracts.

The briefing addressed operational details: the compost site will remain in place, the older north-side operations and building will remain in service, and some large equipment (described colloquially as a large grinder) can be moved. Staff described routine closure and post-closure monitoring tasks — quarterly inspections for settlement, vegetation and methane monitoring — and said contractors perform groundwater and other environmental testing.

Discussion also touched on competition concerns from local haulers and businesses. Several council members said the city provides many services regionally that private firms could offer — from backflow testing and EMS support to street sweeping and equipment loans — and that the interlocal work helps Boswell attract tonnage that keeps costs lower for Beatrice residents. Council members acknowledged community complaints about perceived competition but noted the landfill’s added tonnage helps spread fixed costs over a larger volume and thus reduces upward pressure on local rates.

Votes at a glance

- Consent agenda (items a–c): motion to approve the consent agenda passed 8–0. Mover: Mister McClain; second: not specified. Notes: staff said no public hearings, resolutions or ordinances were on the consent portion.

- Adjournment: motion to adjourn the work session at 6:40 p.m. passed 8–0. Mover and second: not specified.

Next steps and context: staff said they expect a rating-agency response about the bonds within about a week and planned a preconstruction meeting on the building site the following week. Council members asked staff to provide updated calculations that incorporate the planned $13 million borrowing into break-even and rate projections.