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Republic Services cites $2.9M in 2025 revenue as it seeks rate adjustment for Crook County service
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Summary
Republic Services presented 2025 Crook County franchise financials and a 2026 rate request, prompting commissioners to press for clearer efficiency measures and local cost allocations before acting.
Republic Services told Crook County commissioners on April 15 that its Central Oregon market recorded $2.9 million in revenue in 2025 and an approximately 10% contract operating margin, and staff said the company will submit a rate adjustment for 2026.
"Revenue for 2025 was $2,900,000," Erica Heitzel, Republic Services general manager for the Central Oregon market, said while walking commissioners through a line-by-line breakdown of disposal fees, direct labor, equipment and corporate allocations. She said franchise income for 2025 was $296,000 and that the company had allocated specific local costs to the Crook County contract.
The presentation led to extended questioning about how corporate-level profitability and cost allocations affect local rates. Dan Strandy, Republic's business finance manager for the Central Oregon market, told commissioners that certain high-margin activities, such as landfill operations, are separate from local curbside collection and that his projections focus on Crook County contract performance. "The reporting that I've created ... identifies every cost that is an allocation from above the local market," Strandy said, describing a conservative approach that assumes flat volume for 2026 revenue projections.
Public comment and several commissioners pressed Republic to provide more detail on efficiency measures and alternative margin scenarios before the board takes action. Local resident Randy Winers asked whether county rate decisions can or should account for corporate-wide profitability rather than only local business-unit performance.
County commissioners did not act on a rate adjustment at the meeting and asked Republic Services to return with more specifics about cost-cutting and the assumptions behind the proposed increase, including clearer documentation of corporate allocations to the local contract. "I think it would be helpful to have some specifics of efficiencies that you guys have looked at," Chair said during the exchange.
Next steps: County staff will schedule follow-up with Republic Services and provide the board a more detailed breakdown of proposed rate scenarios before a future decision is made.
