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Farmers Branch staff propose $5 monthly fee to fund $40.4 million landfill closure obligation
Summary
City staff told the council the landfill requires $40.4 million in closure and post‑closure financial assurance; the council discussed a $5/month residential fee (seniors $2.50) that would be dedicated to a restricted closure fund and generate roughly $498,000 a year, with council asking for additional revenue/expenditure history.
City staff on Tuesday told the Farmers Branch City Council that the city needs roughly $40.4 million to meet state financial‑assurance requirements for closure and 30 years of post‑closure monitoring at the municipal landfill.
Shane Davis, deputy director of public works, said the landfill is operated by Camelot Landfill TXLP, a subsidiary of Republic Services, and that the city holds the permits and is responsible for closure, post‑closure and corrective‑action costs. Davis said the city’s current restricted closure balance is about $6.1 million.
“To get to that $40.4 million we’ll need to accelerate funding,” Davis told the council, outlining a proposed residential fee that would begin in October 2024. Finance Director Tammy Zimmerman described the staff recommendation: a $5‑per‑month fee for most households and $2.50 per month for seniors, with those revenues deposited into a restricted landfill closure/post‑closure fund.
Zimmerman said the $5 fee would yield roughly $498,000 annually at current enrollment and that staff had budgeted transfers from the general fund in prior years to help build the balance. “This fee is intended to dedicate revenue specifically to closure and post‑closure costs rather than relying solely on general‑fund transfers,” she said.
Council members pressed staff for more detail on revenues and expenditures. One councilor noted simple arithmetic: with a $34.3 million funding shortfall and a 22‑year assumed timeline, the city needs about $1.56 million a year to close the gap, meaning general‑fund contributions would still be required in addition to the fee. Staff said they will provide historical revenue and expenditure figures and incorporate the fee into the proposed budget materials.
Council discussion also addressed alternatives, fairness, and administrative structure. Davis said commercial customers operate under an open market system and that the city’s current landfill‑related revenue is deposited to the general fund; staff proposed routing the new fee directly to the restricted closure fund to protect it from future general‑fund reallocations.
The council did not take a final vote on the fee during the study session; staff said the proposed fee schedule and related budget documents will appear in the forthcoming budget package for further consideration.
Ending: Staff said they will return with more detailed revenue/expenditure history, a demonstration of how the fee interacts with the tax rate and budget, and a proposed schedule showing anticipated increases and transfers. No final action was taken at the meeting.
