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Council directs internal rate study to shore up troubled solid‑waste fund
Summary
Facing a projected operational deficit in the Solid Waste fund by FY2027, Prescott City Council instructed staff to pursue Option A: interim rate adjustments and an internal study to buy time for a full consultant rate study and longer‑term policy decisions.
Prescott City Council directed staff on May 28 to pursue an interim approach to stabilize the Solid Waste fund and avoid a projected FY2027 deficit.
Staff presented two scenarios: Option A, which would adopt interim rate increases, accelerate an internal operational study, and then commission a consultant rate study; and Option B, a larger immediate rate package. Councilors voted unanimously in favor of Option A to stop the fund’s near‑term bleeding and provide time for a comprehensive review.
Under Option A staff outlined an example increase that would move the residential base monthly rate from $24 to $31 and raise commercial rates and tipping fees; however staff said a full rate study is required to set final numbers. Council members emphasized the need to analyze hauling contracts, county obligations and benchmarking against neighboring jurisdictions before finalizing long‑term rates or service changes.
Staff said Option A buys time to design a more sustainable long‑term structure (including consideration of an ala‑carte fee model for services such as Christmas tree or hazardous‑waste pickups), while an immediate consultant study would follow to set durable rates and fees.
Council directed staff to proceed with the internal study and return with proposed interim actions and a timeline for the consultant rate study.
