Rapid City committee reviews four solid-waste rate scenarios; acknowledges presentation without recommendation

On Oct. 28, 2025, the Rapid City Public Works Committee heard a presentation on a new cost-of-service analysis for the city’s Solid Waste Division and discussed four rate-and-service options the city could use to stabilize the division’s finances.

Daniel, a Solid Waste Division staff member, told the committee the analysis evaluates four scenarios and that staff has prepared a resolution to implement Scenario 2, the staff-recommended option. "The point of today's presentation is to provide an updated cost of service analysis...and then to present to the committee 4 different scenarios," Daniel said. The presentation recommended rates take effect Jan. 1, 2026, if the council decides to proceed.

The study, presented in greater detail by Luke Grodig, a consultant with Burns & McDonnell, showed the division has experienced several years of negative net revenue driven by capital and equipment cost increases deferred into 2024–25. Grodig said the analysis intends to rebuild the utility’s reserve fund to the city’s target by 2030 while spreading rate impacts to be less abrupt for customers.

Staff emphasized several drivers for the shortfall: labor and benefit costs rose far faster than expected (projected wage growth of about 19% from 2021 to 2024 became 58%; health-insurance costs rose about 62%), a major landfill construction project (Cell 15) came in far above the 2021 estimate (about $6 million…