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Accounts committee reviews enterprise fund balances, warns about sudden trash fee hikes
Summary
The accounts committee reviewed FY24–FY26 enterprise fund figures and heard that a refuse contract amendment that raised collection costs to about $9.1 million is creating pressure for a large trash fee increase; members urged proactive, incremental rate adjustments and better public display of financials.
The Accounts Committee of the Brockton City Council met May 7 to examine city enterprise funds and discuss the financial pressure on refuse services caused by a recent contract amendment.
City auditor reported year‑to‑date FY26 figures: sewer revenues of about $20.3 million with expenditures near $17.3 million; water revenues about $18.4 million with expenditures near $17.0 million; refuse fund revenues roughly $8.7 million with expenditures about $7.9 million; and recreation revenues about $1.2 million versus expenses of about $1.9 million. The auditor added that a $775,000 general‑fund subsidy for recreation had not yet been journaled into the enterprise fund, which affects the fund balance reported tonight.
Chair told the committee that enterprise funds “are set up pursuant to state law” and should be used only for their designated purposes to avoid commingling. He and other members pressed the auditor for collection statistics; the auditor said refuse fee collections were at about 85.4%, sewer at about 78% (excluding penalties and fees) and water about 79%.
Committee discussion centered on a contract amendment negotiated by the Department of Public Works that the auditor and councilors said raised the city’s public service (refuse) contract from roughly $7.5 million to about $9.1 million, effective July 1, 2025. The auditor and chair attributed the increase primarily to higher per‑ton disposal costs and a state‑required prevailing‑wage adjustment for refuse workers. "If you're going to negotiate a change in a contract ... come to the city council and get the funding piece approved before you bind the city to that contract amendment," the Chair said.
Several members warned against sudden, large rate hikes for residents. One committee member said she reviews household bills frequently and described the impact of a one‑time large increase after years of flat rates. The Chair said the committee will work with the DPW commissioner, the auditor and the CFO to explore options so residents are not faced with large, abrupt increases in the future and asked the clerk to add the matter to a future agenda.
The committee also asked the auditor to provide clearer visuals and public displays of the figures at future hearings so residents can see the data discussed during meetings.
The committee did not adopt a new fee at the meeting; members signaled they will pursue policy and budget steps to address the refuse shortfall ahead of the next budget cycle.
