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Council holds residential garbage fee at $2.05 for 2026 after fund‑balance review
Summary
After staff presented fund‑balance scenarios for the city’s solid‑waste fund, the council voted unanimously to hold the residential garbage fee at $2.05 per month for 2026 rather than increase it to $2.10. Staff had modelled reserve targets and the impact of several fee paths over two years.
The Oconomowoc Common Council on Oct. 7 voted unanimously to keep the residential garbage fee at $2.05 per month for 2026 after staff presented an analysis of the solid‑waste fund balance and multi‑year scenarios.
Why it matters: The city’s solid‑waste fund finances residential collection and recycling contracts. The council weighed raising the fee against using fund balance reserves and managing future year deficits amid an expiring hauler contract in mid‑2026.
Finance staff provided a multi‑year projection of the special solid‑waste fund that showed the fund balance has oscillated with interest‑rate swings and service costs. Staff proposed several scenarios: (A) a $2.10 fee in 2026 (as earlier proposed) would use less fund balance over time but increase household costs; (B) holding the fee at $2.05 in 2026 would consume some reserve in 2026 but leave the city able to adjust rates in 2027 depending on costs and a new contract with the hauler.
Council members expressed preference for smoothing rate changes and avoiding large, immediate increases. Aldermen emphasized the council could revisit the fee next year if contract negotiations required adjustments. Steve (finance staff) said a 20% reserve target for the special fund is a reasonable first‑line defense and that staff modeled how the fee and reserve interact over 2026–2027.
Action: A council motion to hold the fee at $2.05 for 2026 passed by unanimous roll call. Staff will proceed with that figure in the final budget and continue contract negotiations with the city’s hauler; staff suggested a mid‑to‑longer term contract could be explored to lock pricing and reduce cost volatility.
What’s next: Staff will continue negotiations with John’s Disposal and will present contract options and updated fund projections. If cost pressures increase, the council can revisit the fee during the next budget cycle.
