TARE reports revenues ahead of estimate and presents FY26 draft budget and rate adjustments

TARE finance staff presented monthly financials through April and the draft fiscal-year 2026 operating budget and a FY27 financial plan at the May 27 meeting.

Month-to-date results: Staff reported year-to-date revenues of approximately $33.6 million (about 89.7% of budget) and expenditures and encumbrances around $38.5 million (about 86.2% of budget). Staff said revenues were roughly $2.4 million over earlier internal estimates for this point in the year.

FY26 draft and notable changes: Staff presented a draft FY26 operating budget showing roughly $3.7 million more in forecasted revenues than the FY25 original budget. Residential revenues were budgeted assuming a 4% rate increase; green-waste processing rates cited in the draft were adjusted from $2.64 per cubic yard to $5.28 per cubic yard in FY26 in the materials shown to the board.

Major expenditure changes: Staff flagged contractual cost increases including CPI adjustments, higher residential collection contractual costs, and specific increases tied to supervised litter-collection crews and other line items. Staff also noted a continuing shopping-cart collection pilot expense and capital-expenditure reallocations tied to stormwater initiatives. Capital expenditures in FY26 were shown as budgeted at approximately $345,000 in the materials.

Comparative financial statements: Separately, Justin (finance department) presented comparative financial statements through March 31, 2025. He reported a net position of about $28.0 million as of March 31 and said operating revenues from residential services increased roughly $3.2 million (about 14%) year over year, reflecting rate adjustments that began in February.

Board direction and schedule: Staff noted the board could approve the draft budgets at the meeting or wait until the council Q&A scheduled the following week; board members discussed timing and potential minor adjustments. Staff and board agreed to proceed with the draft for board approval in the meeting materials; staff said they would continue to monitor and report any council-driven changes.

Ending: Staff said departments had not requested reappropriations from the TARE fund for carry-forward items and that current balances and projections indicate no anticipated need for reappropriation at year end.