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Colona projects resident refuse rates rise in 2027 under new LRS contract; committee to amend ordinance for future rates
Summary
Staff briefed the committee on a contract renewal with LRS that keeps current resident waste charges at $13.75 this fiscal year but projects increases beginning May 1, 2027 (to about $19.50 monthly) to cover higher contractor costs; staff recommended amending ordinance O-25-11 to set the updated rates for council review.
City staff presented projections tied to a renewed refuse-service contract with LRS and told the Colona finance committee the city is holding resident waste charges at $13.75 for the current fiscal year but will need higher rates beginning May 1, 2027 to cover contractor increases and related expenditures.
"We had decided in this current fiscal year's budget not to increase the waste rate to our residents, so it's staying the same at $13.75 a month," the staff member said. Using projected expenditures (assumed wages at 4% and health-insurance increases at 20% in staff modeling), the packet shows an illustrative resident monthly charge rising to about $19.50 on 05/01/2027, $19.75 on 05/01/2028, $20.75 on 05/01/2029 and a further projected step that the transcript records as '2160' (interpreted as $21.60) in the subsequent year. Staff said these projections are estimates and can be revisited if market conditions or fund balances change.
Staff noted the waste fund opening balance projection for May 1 next fiscal year of $173,008.37 and recommended maintaining a reserve near six months of expenses where feasible. The packet also explained that some fees (for fuel) may not require council approval under the contract language, while other fee changes would.
The staff member moved to have the ordinance O‑25‑11 amended to reflect the projected new rates effective May 1, 2027 and to send that amendment to the committee of the whole for council consideration. Committee members agreed to forward the amendment and asked staff to continue monitoring fund balance and to post projected rates publicly with a disclaimer noting they are subject to change.
Operational details: staff said new green collection cans will be distributed beginning Aug. 1 and the new contract will include a monthly bulk-pickup day (fourth Wednesday) with one free bulk item per household; marketing materials remain pending. Staff also flagged certificate-of-deposit maturities Aug. 27 that may affect fund decisions.
Next steps: staff will prepare the ordinance amendment for the committee of the whole, post projected rates publicly with disclaimers, and continue monitoring fund balances and contractor notices.
