Ocala consultant urges two-year phased trash-rate increases; council asks options including ending curbside recycling

Ocala City Council members heard Nov. 12 from consultant Raftelis that the city’s solid-waste enterprise is facing rising costs that a two-year phased rate increase would help address.

"If we take no action," consultant Terry Bovary told the council, "that's not a very sustainable business operation." Bovary said solid-waste-related inflation has outpaced general CPI and a recent increase in disposal/tipping fees drove a sharp rise in operating costs between fiscal 2025 and 2026. The consultant recommended a two-year phase-in that would raise a typical residential bill roughly $4.30 per month over that period and restore a capital replacement program and reserve levels.

Bovary said the proposed schedule would allow the utility to maintain about 90 days of operating reserves and recommended automatic annual indexing to keep rates tied to inflation after the phase-in. He also warned that without adjustments, the fund balance could begin to go negative as early as 2027.

The presentation included a proposal for a new compactor pull fee for properties that use compactors. "Based on an estimated 1.5 hours per pull, the cost per pull is about $160," Bovary said, and when overhead and a general-fund transfer are added the consultant estimated a per-pull charge of about $195. He also noted the compactors themselves are costly (consultant cited roughly $52,000 for a 20-cubic-yard unit and roughly $55,000 for a 34-cubic-yard unit) and recommended passing disposal costs on to compactor customers.

Public comment raised recycling performance and program options. Mike Aguilar, general manager at GFL Environmental, asked about the city’s recycling rejection or contamination rate; Darren Park, the city’s public works director, said the most recent study showed a contamination rate of 41 percent. Aguilar and several council members pointed to dual-stream or other program structures used elsewhere and suggested the city study alternatives.

Raftelis modeled the financial effect of program changes and told the council eliminating curbside single-stream recycling could meaningfully reduce the near-term bill impact. The consultant described differing estimates during the discussion: in one modeling scenario Raftelis indicated a reduction in bill impact on the order of several dollars per month (the consultant referenced roughly a $6/month reduction in a modeled scenario) and elsewhere provided a preliminary per-household savings estimate of about $2 per month if curbside recycling were removed. Bovary emphasized program trade-offs — potential new drop-off sites, second-cart demand, and the cost and ownership status of existing carts would affect net savings.

Council members said household affordability is a concern. One council member asked whether yard-waste pickup could be cut to save money; staff cautioned that discontinuing yard-waste collection risks increased illegal dumping and may reduce local eligibility or complicate reimbursement under federal or state disaster support rules. Staff also said some route efficiencies have already been achieved through equipment changes.

The council raised a separate equity question about a long-standing reduced rate for Trinity Villas, a subsidized Ocala Housing Authority property. Staff said records show Trinity Villas’ rate was reduced to about $8.84–$8.85 in 2003, but they could not find documentation explaining the original rationale. Several council members asked staff to develop options to phase that discount out or to align subsidies across similarly income- or age-restricted multifamily properties.

There was no vote. The council asked staff and the consultant to return with detailed financial options and the cost implications of program changes — including scenarios that would reduce or eliminate curbside single-stream recycling, phased approaches to special rates for subsidized properties, and timing options for any increase. The council also discussed avoiding an immediate post-holiday effective date for any increase. The work session adjourned with staff directed to bring back the requested options for formal consideration.

For now, the city has a consultant recommendation but no adopted rate changes; the council’s next solid-waste step is for staff to prepare and present the modeled options and a formal ordinance or resolution if the council chooses to adopt rate adjustments.