Ocala work session moves to end curbside single‑stream recycling and trims proposed sanitation rate hike

Ocala officials signaled an end to curbside single‑stream recycling and adjusted parts of a proposed sanitation rate increase after a Jan. 13 work session where consultants laid out financial models and tradeoffs.

Darren Park, public works director, opened the presentation and turned the session over to consultant Terry Bovary of Raftelis, who summarized the November rate study and the options the council had requested: delaying the rate increases, phasing Trinity Villas to the multifamily rate, and analyzing the impact of eliminating curbside single‑stream recycling. "If we were to eliminate the recycling, [the contractor] would have about a $1,600,000 per year reduction," Bovary said, while noting an estimated $200,000 per year increase in landfill/disposal costs and a conservative one‑time allowance of about $1,000,000 for additional carts.

The consultant presented a two‑year phase‑in approach for rates for residential customers, saying the plan would prevent the enterprise fund from going negative and preserve roughly 90 days of working capital. He estimated the typical single‑family customer would see about a $4.30 per month increase (about $8.60 over two years) under the original plan; multifamily customers would experience a smaller two‑year increase of roughly $3.11 per month. Under the recycling‑elimination scenario the near‑term increases would be smaller (a table shown in the session showed single‑family monthly bills about $2 lower in 2026 if curbside recycling were dropped).

On the recycling question, Bovary told the council the modeled net reduction in annual costs was roughly $1,500,000 once lower contractor outlays and a reduced general‑fund transfer (tied to revenues) were considered. He also flagged other budget items built into the model: a $100,000 per year allowance for convenience‑center staffing and a roughly $200,000 per year decrease in the general‑fund transfer that would accompany lower system revenues.

Council members pressed staff on operational details. Park said drop‑off locations (convenience sites) could be reinstated but the city would need a contract to accept material and would need time to notify customers; staff estimated about a three‑month notification and transition window. Park added that Waste Pro (the current contractor) owns many existing carts and that, as an alternative to buying new carts, the city could negotiate with the contractor to reserve existing cans to reduce the one‑time cart expense.

Council members also discussed markets and materials. Staff described likely accepted commodities as steel, aluminum, cardboard and paper, and #1 and #2 plastics, while noting #3–#7 plastics have lower market value and may not be accepted. Bovary said processors will remove valuable commodities at sorting facilities and that hauler or market acceptance would guide final commodity lists.

On timing, councilmembers favored delaying the operative change to allow for outreach and logistics. Several members suggested June 1 or July 1 as feasible start dates; one member said, "I'll give you June 1," while others preferred July 1 to allow more time for public messaging. The consultant said his model conservatively assumed cost savings would begin in fiscal year 2027 but acknowledged an earlier effective date would increase near‑term savings.

City finance director Peter Burrell noted existing assistance programs but cautioned that a recent change in program rules limited LIHEAP community action funding to electric bills: "all LIHEAP funding now can only go to electric," he said, meaning fewer dollars are available to offset sanitation charges through that channel.

Council did not take a formal roll‑call vote in the work session. By consensus the council directed staff to proceed with planning to end curbside single‑stream recycling, reinstate drop‑off sites, pursue necessary contract changes, and craft public messaging; council members also endorsed a two‑year phase‑in for the sanitation rate increases as modeled. Staff said they would review the existing recycling policy and bring options back on a future city manager's report and that they would notify affected parties, including Trinity Villas administration, directly before broader customer notice.

The work session concluded with staff confirming the agreed direction and the chair adjourning the meeting.