CSWD board approves transmittal of revised FY2027 budget to member towns after cuts and new fees

The Chittenden Solid Waste District board voted unanimously April 22 to transmit a revised FY2027 budget to the district's member municipalities for their approval, after staff described expense cuts, revenue adjustments and a set of new and revised fees.

Executive Director Sarah told commissioners the revised plan reflects significant edits to preserve cash following a recent fraudulent theft and to accommodate projected MRF (material recovery facility) transition costs. "The income before the transfers to the reserves and after depreciation is just over $2,200,000," she said, framing the package of cuts and revenue updates.

Why it matters: the revised budget shapes the district's operating capacity for the next fiscal year, funds continued services at existing facilities and finances capital work tied to the new MRF. Commissioners said they wanted transparent options; staff presented several alternatives and recommended the revised option that excludes a $45,000 set of "further consideration" cuts recommended earlier.

Major numbers and assumptions: staff presented anticipated revenue just under $19.5 million and total expenses just over $16.0 million. The packet shows conservative commodity revenue estimates; staff said the recycling commodity price assumptions were reduced to reflect market trends. The budget assumes the new MRF will be online in the fourth quarter of FY27 and therefore models only one quarter of MRF-related revenue and costs in FY27.

Fees and program changes: the board packet and presentation outlined several fee changes and program-level adjustments: - A $1 facility fee per trip at district drop-off centers, intended to build capital reserves; staff said exceptions would be made for materials covered by extended producer responsibility laws and for textiles to encourage diversion. "We felt that the more equitable solution was a dollar per trip," Sarah said. - A tip fee increase for the organics recycling facility to $77 per ton, effective July 1. - Tip fuel and certain processing costs were noted to have increased; staff said tip fuel is budgeted at $100 per ton following an April 1 increase. The processing fee tied to the recycling facility will be adjusted by a cost-of-living factor (roughly 3 percent as a placeholder until December).

Programs retained: staff and the finance committee recommended retaining the staff wellness program and the longstanding incentive-grant program for businesses (used, for example, to purchase bin covers that improve recycling streams). Sarah said those line items support staff morale and small-business participation in waste-reduction programs.

Uncertainties and contingencies: commissioners pressed staff on a few uncertainties, including pending operational and marketing contract terms for the new MRF and the pace of market recovery for commodity prices. Sarah said those unknowns made it difficult to project more than a wash for the quarter the MRF comes online, so the FY27 figures are conservative. The packet also contains a longer narrative and detailed backup showing where cuts were made.

Public notice and implementation: staff said there is no legally required fixed notice period for fee changes but that in practice the district aims to provide at least two months' notice (three months when possible) to catch less-frequent users; notices will be sent to member towns and posted on the CSWD website. Staff confirmed certain fees (lead-acid battery and propane-cylinder handling) were already in effect; yard-waste and the $1 facility fee are slated for July 1.

What's next: the board authorized staff to release the revised FY2027 budget to member municipalities for their consideration and approval. Member towns will vote or otherwise act under the district's approval procedures; the budget is officially adopted only after the required number of member municipalities approve it.

Votes at the meeting: the motion to authorize transmittal of the revised FY2027 budget passed by unanimous voice vote.