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SPSA previews FY27 budget: tip-fee changes likely, battery disposal costs rising; board watching mattress stewardship bill
Summary
SPSA staff previewed FY27 budget items including likely increases to municipal and commercial tip fees and a tiered contract approach. Staff warned battery disposal costs have spiked (about $4,000 in Q1), and the board said it will monitor House Bill 86, a mattress stewardship bill that would require certified mattress recyclers and DEEQ certification beginning July 1, 2027.
Southeastern Public Service Authority staff on Feb. 25 previewed FY27 budget proposals that will be part of the formal budget process and public notice schedule.
Dennis Bagley told the board the FY27 budget will recommend increases in the municipal tip fee and commercial rates to cover rising disposal and contractor costs. Under the current tip-fee schedule staff cited at the meeting, municipal/residential customers pay $65 per ton (a breakdown staff supplied: $36 disposal, $8 hauling, $8 transfer station operations, $13 expansion/closure). Staff said contract commercial customers currently pay $62/ton while non-contract commercial customers pay $78/ton; Bagley said staff expect a commercial-rate increase of roughly $4–$5 per ton but the final recommendation depends on third-party contractor data and will be presented with required public notice.
Staff described a proposed tiered approach for commercial contracts to allow lower per-ton rates for purchasers who guarantee more tonnage (for example 10,000, 20,000, 30,000 ton bands), intended to attract guaranteed volume and improve revenue stability.
On hazardous materials, staff warned the board that lithium-ion battery disposal has become more costly and poses a fire risk. The communications manager and Bagley said the organization spent about $4,000 in the first quarter of this year on battery disposal and cited two landfill fires last year attributed to lithium-ion batteries as a reminder that prevention and proper HHW drop-off are cost-effective compared with firefighting and repairs. "It's a transfer of money from fighting fires to preventing fires really," Bagley said.
On legislation, Bagley briefed the board on House Bill 86, a mattress stewardship bill advancing in the General Assembly. If enacted, the statute would create a mattress stewardship program similar to tire stewardship: mattress sellers would be required to contract with certified mattress recyclers; DEEQ would certify recyclers and monitor compliance; the bill would not go into effect until July 1, 2027. Bagley said SPSA is researching whether to pursue certification to operate as a mattress recycler and will present recommendations in a future meeting.
Staff emphasized statutory requirements around fee-setting: SPSA must adopt fees sufficient to cover operations and follow a public-adoption process; staff said preliminary fee guidance is shared early so member localities can incorporate anticipated costs into their budgets prior to formal adoption.
Ending: Staff will return with proposed FY27 fee schedules, seek required public notice and comment, and brief member localities as the formal budget timeline progresses.
