Southern Pines previews FY2025–26 revenue outlook; staff proposes higher residential solid‑waste fee after recycling surge
Loading...
Summary
Finance and public‑works staff told the council that a higher recycling subscription rate and a new vendor contract have pushed environmental services costs up; staff proposed a residential monthly solid‑waste fee of $25.25 (from $21) under a 75% residential cost‑recovery policy and urged council direction before the budget retreat.
Southern Pines staff used the March work session to preview revenue assumptions for the FY2025–26 budget and to seek council guidance on how much of environmental services costs to recover from utility customers.
Assistant manager Parsons and finance staff said staff is modeling next year’s budget assuming town policy to recover 100% of commercial environmental services costs and 75% of residential costs. Jessica, who presented the solid‑waste and recycling data, reported the town has enrolled roughly 2,000 voluntary recycling subscribers since signups began — far above the budget estimate — and that the increased subscription numbers moved the Meridian contract into a higher cost tier.
“As of last week, we have 2,000 subscribers,” Jessica said. That jump, staff said, increases tipping and collection expenses because the vendor’s price structure is tiered by subscriber counts and the town pays a flat monthly fee in each tier.
Staff estimated total environmental services expenditures for next year at just over $3 million. Under the 100%/75% cost‑recovery split staff used for modeling, that yields a proposed residential monthly fee of $25.25 a month (current residential fee $21) plus an unchanged $10 per month voluntary recycling subscription for participants who opt in.
Council members asked for more detail on the $25.25 calculation and a breakdown of the $15 monthly portion attributed to environmental services costs; staff agreed to provide a line‑item breakdown by Friday to inform deliberations at the council retreat.
Council also raised operational issues: landscaper‑dumping of yard debris on private property, truck reliability and overtime, and the difficulty of enforcement without direct evidence. Police and staff said they rely on photos and license‑plate information to pursue illegal dumping, and in repeat cases they involve law enforcement.
Several councilmembers said they were comfortable keeping the 75% residential cost‑recovery assumption for the retreat; staff noted changing that assumption before the retreat would force a near‑term adjustment to the draft expenditure plan to close a roughly $500,000 revenue gap.
