Riverton council directs staff to use $2-per-home model to shore up sanitation fund; will break out recycling fee

The Riverton City Council directed staff to move forward with a fee scenario at its May/June work session intended to reduce a projected sanitation fund shortfall. Council members debated multiple options: (1) a plan that would split the existing single line item into a separate first-garbage and first-recycle charge; (2) a tiered structure that taxes households with multiple additional cans at higher increments; and (3) doing nothing and continuing the current general-fund subsidy.

After extended discussion about equity and cost transparency, the council voted to support the option staff labeled "Estimate 2," a modest across-the-board approach that separates the first garbage and first recycling charges and raises rates by roughly $2 for many households to help close the roughly $290,000 gap in the sanitation fund. The motion to adopt Estimate 2 for the budget direction passed on a council vote with one dissenting member; staff will include the fee schedule in the public notice for the upcoming June fee hearing.

Council members said the split would help residents see the true cost of recycling services. Mayor and other councilors noted recycling pickup is performed at a lower frequency and has different hauling and processing costs; breaking out the two lines also creates the possibility of an opt-out or opt-in model when the contract is rebid. Staff emphasized that any move to short-circuit the current curbside contract would require re-bidding (the existing contract runs to mid-2028).

Key details discussed - Current monthly charge for a first garbage can + recycle: $13 per household (first can and first recycle are currently bundled). - Estimate 2 (council-preferred): splits the bill (first garbage + first recycling) and raises the overall bill modestly (net effect for many single-can households is about $2 increase). Staff estimates the scenario would bring the sanitation fund close to break-even while leaving a small cushion in fund balance. The council discussed the risk of some residents cancelling extra cans in response to increases, which could reduce revenues. - Estimate 4 (tiered alternative): targeted increases for households with multiple additional garbage cans, producing a slightly different distribution of costs but similar aggregate revenue.

Why it matters: The city is preparing to fund the construction and future operating costs of a new transfer station that will affect tipping and hauling costs across the service area; councilors said the sanitation fund must move toward self-sufficiency rather than rely on continuing large transfers from the general fund.

What comes next: Staff will prepare the fee schedule for public notice and the required public hearing on the proposed fee changes on the next budget hearing date.