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Council directs staff to update solid-waste ordinance as truck delivery exposes fund shortfall
Summary
After staff reported a delivered garbage truck will deplete the solid waste fund, councilors directed staff to update the solid-waste ordinance to align with MPCA guidance and prepare fee options; council approved staff work on the ordinance and asked for a "best" compliance option.
City staff told the Virginia City Council Jan. 7 that a garbage truck ordered in 2022 is arriving and that paying for it from the city—s solid waste fund would deplete that enterprise account. Councilors voted to direct staff to update the solid waste ordinance to conform with Minnesota Pollution Control Agency (MPCA) best practices and asked staff to prepare fee and service options.
Lede/action: The council approved a motion directing staff to prepare updates to the city—s solid waste ordinance in line with MPCA recommendations; the motion was moved by Councillor Motley and supported by Councillor Bach Schneider and carried by voice vote.
Why it matters: Staff said the truck purchased in 2022 is arriving next week, but the solid waste enterprise fund does not have sufficient cash on hand to pay the bill without creating a large deficit. Finance staff and public works recommended updating the ordinance and reviewing the fee schedule so the enterprise fund can be made sustainable.
Fund status and options: Staff said the approved truck purchase (resolution, Sept. 13, 2022) was to be split across FY2023 and FY2024 budgets, but revenues and higher tipping fees have left the fund unable to absorb the outlay at delivery. The finance director explained the fund would show a deficit if the truck payment is made from it; staff proposed updating the ordinance and presenting options including fee increases, targeted can-size pricing, potential leasing or financing, or outsourcing as alternatives. Councilors discussed the possibility of targeted notifications, multiple can sizes (including a lower-cost small can option) and whether outsourcing might lower costs for some residents.
Ordinance update: Staff recommended following MPCA guidance and developing a clear code that defines collection type (organized vs. open collection), licensing, fee schedules and enforcement so the city can better control access to service and reduce unauthorized use of municipal collection points.
Outcome and next steps: Council directed staff to prepare ordinance updates following MPCA best practices (staff were asked to pursue the "best" level option) and to return with fee schedule options and analyses of financing or other funding approaches. Councilors requested clear, public-facing bullet points explaining the financial situation, fee options, and potential service changes before any rate increases.
Ending: Staff will draft ordinance language, fee schedules and alternate delivery/outsourcing scenarios and return to council for further consideration.
