Discussion and possible action to adopt RES. 2025-67 regarding proposed adjustments to the Residential Solid Waste and Commercial Solid Waste programs making the new rates effective July 4, 2025 and July 1, 2026.

Rate adjustments are proposed for both the residential solid waste and commercial solid waste programs.

Residential Solid Waste

The current monthly residential solid waste fee of $23.55 includes once-a-week collection of customer refuse and recycling materials, two curbside bulk trash collections per year and three household hazardous waste collection opportunities per year.

Over the past year, city staff have been working with the consulting firm FCS on a rate study for solid waste services. The study confirmed that the residential solid waste program’s operating costs are increasing. The primary factor behind this cost growth is inflationary pressure. For example, inflation is driving up the cost of fuel, trucks, and other fleet expenses. In addition, the cost to dispose of solid waste and process recyclables has grown significantly. The anticipated annual increases to the Residential Solid Waste Fund’s primary cost inputs exceed what the fund can support without additional rate revenues.

As shown in the attached Exhibit 1, the study recommends a monthly residential solid waste rate increase of 10 percent per account in FY 2026 and 8 percent per account in FY 2027, an increase of $2.36 in FY 2026 and $2.07 in FY 2027. The new rates would become effective at the beginning of each fiscal year. The adjustment would result in a resident’s monthly cost for service being $25.91 in FY 2026 and $27.98 in FY 2027.

Commercial Solid Waste

The City provides commercial solid waste services to customers within the City on a competitive basis with private providers. Commercial solid waste services include front-load, compactor, side-load (90 gallon barrel), recycling and roll-off services.

Similar to residential, the rate study verified that the commercial solid waste program faces cost increases associated with landfill rates, inflation and recycling costs.

The study generally recommended a rate increase of 2.4 percent for commercial solid waste in FY 2026 and 2.3 percent in FY 2027. However, the City is in the midst of a multi-year plan to align the rates charged to different customer classes with cost of service, so rates are higher for recycling customers and lower for front-load customers. Finally, roll-off rates are forecast to increase based on the overall system average increase. Proposed rates are as follows:

FY 2026

• 2.15% - front-load
• 2.40% - compactor
• 10.0% - side-load
• 5.75% - recycling
• 2.40% - roll-off
• 2.40% - special haul
• 2.40% - miscellaneous fees

FY 2027

• 2.00% - front-load
• 2.30% - compactor
• 8.00% - side-load
• 5.75% - recycling
• 2.30% - roll-off
• 2.30% - special haul
• 2.30% - miscellaneous fees

At the March 4, 2025 City Council Study Session, staff presented the recommendations for Solid Waste rates and discussed the operating budget and capital program factors that are influencing the recommended rate adjustments.

At the March 4, 2025 City Council Meeting, the City Council adopted the statutorily required Notice of Intention to adjust rates and charges, notifying the public that adjustments to Solid Waste rates and fees would be considered in a Public Hearing.

Staff recommends Council adopt the resolution adjusting residential and commercial solid waste rates as presented.

The proposed solid waste rate adjustments provide the revenue necessary for the service to address operational requirements for the next two years. The proposed residential solid waste rate adjustments are estimated to increase program revenues by approximately $1,820,000 in FY 2026 and $3,500,000 in FY 2027.

The proposed commercial solid waste rate adjustments are estimated to increase program revenues by about $74,000 in FY 2026 and $150,000 in FY 2027.