Evansville council approves phased curbside refuse fee increase to shore up sewer funds

The Evansville Common Council voted 8-1 on Feb. 9 to adopt Ordinance G-2026-02, a phased increase in the city's monthly curbside refuse and recycling charge intended to stop ongoing subsidies from the sewer fund and prevent a larger, abrupt increase when contract escalators take effect.

Vic Kelson, executive director of the Evansville Water & Sewer Utility, told the council the current $13.30 monthly charge has been unchanged for years while Republic Services' operating costs have climbed. Kelson said the utility has made up about $1,300,000 of shortfalls since 2022 by using sewer funds and that continuing the practice would jeopardize sewer projects required under the city's consent decree with federal regulators.

Under the ordinance, the charge would rise to $15.30 after council approval in 2026, to $17.30 in 2027 and to roughly $20.92 in 2028. Kelson said the utility also asked to extend the Republic Services contract one more year to 2028 to allow time to explore other providers and to phase the increases rather than impose a single, larger adjustment.

Kelson said the city proposes to move customer-service calls for trash from Republic's call center to EWSU's local customer-service program and added that the utility intends to pursue contract negotiations and other options during the extension period.

Todd Chamberlain, who manages municipal and government affairs for Republic Services, told the council the company has cut costs where possible but said major drivers of higher rates include labor, training, fuel and insurance; he warned that reducing rates without cutting services would necessitate service reductions.

Council members questioned whether renegotiation, regional landfill availability or in-house service were realistic alternatives. Kelson said out-of-area landfills exist but can create interstate complications and higher haul costs, and that a new provider would need time and equipment to enter the market.

Public commenter Shauna Jarveau said she generally supported a fee increase but urged the council to consider tiered pricing or smaller bins so low-volume households are not charged the same as heavy users. Several councilors said customer service and consistent performance by Republic must improve as part of any contract amendment.

The ordinance also directs staff to seek opportunities to limit future increases by reducing tonnage through recycling and other measures and to continue work on negotiating contract terms that limit sudden spikes in costs.

The council recorded eight "aye" votes and one "nay." Councilwoman Kayler Lindsay cast the sole opposing vote, saying she was not comfortable approving the increase for residents at this time. The ordinance takes effect according to its terms following formal adoption.

Next steps: staff will proceed with the contract amendment, explore alternative providers during the extension period and report back to council on options and customer-service plans.