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Council establishes Solid Waste Enterprise Fund, approves $2.05 million interfund loan to buy carts and launch service
Summary
The council voted Feb. 24 to create a Solid Waste Enterprise Fund with a $2,050,000 initial budget and to approve a $2,050,000 interfund loan from the general fund to buy rollout carts, fund outreach and provide operating capital for the new solid waste division.
The Town of Sahuarita council voted Feb. 24 to establish a Solid Waste Enterprise Fund with an initial budget of $2,050,000 and to approve an interfund loan of that amount from the general fund to finance cart purchases, outreach and start-up operations. Deputy Public Works Director Daniel Logan told the council the funds will create financial stability for the program and allow the town to own rollout carts that will be used in the new service.
"This is where I personally feel, and I believe the Public Works department feels that we're actually gonna start this solid waste division," Logan said. He described the loan terms: principal of $2,050,000, maturity June 30, 2025, an interest rate calculated at 3% (based on a 10‑year AA Moody bond market reference), and annual principal and interest repayments due June 30. Logan reported a total interest figure during the presentation as "$374,006.24" as part of the repayment calculation.
Staff said the budget includes a $250,000 minimum reserve for stability, $50,000 set aside for public outreach and communications, and funding to cover the approved full‑time positions needed to support customer service and rollout administration. The bulk of the requested funds will cover purchase and delivery of carts that the town will own; Logan said owning carts removes recurring delivery/removal fees for residents over time.
Logan said staff had evaluated vendors and planned to use a vendor that manufactures in Arizona (Sierra Carts), and that the vendor reported a low failure rate on deployed units. "Out of almost 300,000 carts deployed, they had 18 failures," Logan said, describing the vendor's performance record.
Staff said revenue from the new fund will begin in September, with billing starting in August, and recommended approval of the interfund loan to bridge start‑up costs and ensure timely delivery of the carts and uninterrupted service at startup. A council motion to establish the fund and approve the loan passed by voice vote with no recorded opposition.
