PowerPoint Presentation (added 10/18/2024)*

Solid Waste Residential Rate Review 
10/22/24

Presentation Overview
–Background
–Current rate plan
–Trend in Diesel fuel costs 
–Trend in insurance costs
–Residential Overview
–Recommendations
2

Solid Waste Fund Balance
3
FY24-25 Budget
FY25-26 
Budget
FY26-27 
Budget
FY27-28 
Budget
FY28-FY29 
Budget
FY29-30 
Budget
Beginning Fund Balance
4,786,425
           
2,711,279
        
(266,305)
          
(3,925,039)
      
(8,290,840)
      
(14,986,252)
    
Operating Revenue
27,079,828
        
27,625,928
     
27,860,688
     
28,064,900
     
28,063,375
     
27,880,289
     
Operating Expenditures
(29,154,974)
       
(30,603,512)
    
(31,519,421)
    
(32,030,701)
    
(34,758,787)
    
(36,046,208)
    
Contingency
(200,000)
        
Total Surplus/(Deficit)
(2,075,146)
         
(2,977,584)
      
(3,658,734)
      
(3,965,801)
      
(6,695,412)
      
(8,165,919)
      
Ending Fund Balance
2,711,279
           
(266,305)
          
(3,925,039)
      
(7,890,840)
      
(14,986,252)
    
(23,152,171)
    
 Fund Balance Policy 10% 
Operating Revenue 
2,707,982.77
     
2,762,592.77
  
2,786,068.76
  
2,806,490.04
  
2,806,337.47
  
2,788,028.95

Solid Waste Services
4
• Included in Residential Service 
– Residential Homes – 57,800
– Residential Trash – 71,000 tons Collected
– Recycle – 9,450 tons Collected
– Street Sweeping – 18,640 lane miles
– Household Hazardous Waste – 26,160lbs Collected
– Bulk Trash – 20,100 tons Collected 
– Litter Patrol
– Illegal Dumping Collections
– Alley Access Control Program
– Container Replacement
– Inspection Services / Bulk Trash / Residential

Solid Waste Efficiencies
5
• Efficiencies – FY24
– Optimized Routes – saved 45,500 route miles
– Reduced Overtime – 20% decrease in hours 
– Recycle Contamination – Reduced from 29.5% to 20.8%
• Efficiencies – Ongoing
– Optimizing 41 routes for Recycle Collection
– Internal Audit Review of Bulk Trash Collection
– Continue to Decrease Overtime hours
– Continue to Reduce Recycle Contamination

Solid Waste Rate Review - Residential
Council approved adjustments:
6
Fiscal Year
Rate Adjustment
2023
$2.25
2024
$1.00
2025
$0.90
2026
$0
(Sep 22)
(Jan 24)
(Jan 25)
(Jan 26)

Solid Waste Cost Factors
Major Drivers
FY22 Actual
FY 25 Forecast
Difference
% Difference
Diesel Fuel Cost
$1,046,385
$1,609,458
$563,073
54%
Insurance Costs
$1,060,707
$2,630,795
$1,570,088
148%
ADEQ Fees
$35,807
$83,073
$47,267
132%
Equipment Costs (ASL)
$361,965
$510,894
$148,929
41%
Salaries and Benefits
$5,000,737
$7,656,512
$2,655,775
53%
7

Trend in Diesel Fuel Costs
8

Residential Solid Waste – Diesel Cost Impact
9
$702,817.00 
$569,948.00 $605,815.00 
$1,046,385.00 
$1,204,154.00 
$1,463,144.00 
$1,609,458.00 
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
Annual Fuel Cost
FY19
FY20
FY21
FY22
FY23
FY24 Estimate
FY25Projected
Fiscal Year
Miles Driven
FY22
479,990
FY23
455,901
FY24
434,557
FY25 Estimate
420,500

Residential Solid Waste – Diesel Cost Impact
10
FY22 Projected - $594,420
FY22 Actual - $1,046,385 ($451,965)
FY23 Projected- $896,108
FY23 Actual - $1,204,154 ($308,046) 
FY24 Budgeted- $896,108
FY24 Projected - $1,324,569 ($428,461)
FY25 Projected – $1,609,458
FY25 Projected Unrecovered = ($613,350)
$0.91 x 56,200 = $613,350   FY25
$594,420
$896,108
$896,108
$996,108
$1,046,385
$1,204,154
$1,463,144
$1,609,458
$451,965
$308,046
$567,036
$613,350
-$100,000
$100,000
$300,000
$500,000
$700,000
$900,000
$1,100,000
$1,300,000
$1,500,000
$1,700,000
$1,900,000
FY22
FY23
FY24
FY25
Budget
Actual/Projected
Unrecovered Amount

Trend in Insurance Costs
11

Risk Mgt & Workers Comp 
12
$344,493 
$460,947 
$612,410 
$991,822 
$1,621,704 
 $-
 $200,000
 $400,000
 $600,000
 $800,000
 $1,000,000
 $1,200,000
 $1,400,000
 $1,600,000
 $1,800,000
Insurance Costs
FY19
FY20
FY21
FY22
FY23
FY23 Projection: $1,091,005
FY23 Actual Cost
5-Year Cost change - $1,277,211
Projection to actual - $530,699

Insurance Impact – Difference from Forecast
13
FY22 - $0
FY23 - $530,699
FY24 - $1,037,522
FY25 - $842,867
FY26 - $885,010
FY27 - $929,261
FY28 - $946,720
FY29 - $963,891
FY30 - $980,714
-$150,000
$350,000
$850,000
$1,350,000
$1,850,000
$2,350,000
$2,850,000
$3,350,000
FY22
FY23
FY24
FY 25
FY26
FY27
FY28
FY29
FY30
FY22 Budget Projection
Actual/Projected
Unrecovered Amount
FY22-FY30 Cost change - $7,116,684

Residential Solid Waste Rate
14

Year
Adjustments
Increase Amount (Council 
Approved 2022)
Recommendation
2025
$0.90
$0.55
2025
$0.00
$1.50*
2026
$0.00
$1.25
2027
$0.00
$1.25
2028
$0.00
$1.25     
2029
$0.00
$1.25
2030
$0.00
$1.25
Recommendation: 
Implementation Rate Increases
15
(March 25)
(July 25)
(Jan 26)
(Jan 25)
(July 25)
(Jan 26)
(Jan 28)
(Jan 28)
(Jan 27)
(Jan 29)
(Jan 27)
(Jan 29)
(Jan 30)
(Jan 30)
(additional)
*Remove $0.91 Fuel Surcharge

Recommendation: 
Implementation of Rate Increases
16
Year
Rate Adjustments
Approved                               Recommended
Monthly Rate
Residential              Extra Container
2025
$0.90
-
$27.70
$13.28
2025
-
$0.55
$28.25
$14.50
2025
$0.91*
$0.59
$29.75
$15.75
2026
-
$1.25
$31.00
$17.00
2027
-
$1.25
$32.25
$18.25
2028
-
$1.25
$33.50
$18.50
2029
-
$1.25
$34.75
$19.50
2030
-
$1.25
$36.00
$20.50
(Jan)
(March)
(July)
(Jan)
(Jan)
(Jan)
(Jan)
(Jan)
*$0.91 Fuel Surcharge

Residential Rate Comparison
17

5-Year Forecast With Rate 
Implementation
18
FY24-25 Budget
FY25-26 
Budget
FY26-27 
Budget
FY27-28 
Budget
FY28-29 
Budget
FY29-30 
Budget
Beginning Fund Balance
4,786,425
           
3,119,861
        
2,789,755
        
3,150,919
        
4,620,585
        
4,578,892
        
Operating Revenue
27,488,410
        
30,273,406
     
31,880,576
     
33,500,367
     
34,717,104
     
35,803,715
     
Operating Expenditures
(29,154,974)
       
(30,603,512)
    
(31,519,421)
    
(32,030,701)
    
(34,758,787)
    
(36,046,208)
    
Contingency
(200,000)
        
Total Surplus/(Deficit)
(1,666,564)
         
(330,106)
          
361,154
           
1,469,666
        
(41,683)
            
(242,493)
          
Ending Fund Balance
3,119,861
           
2,789,755
        
3,150,909
        
4,620,585
        
4,578,902
        
4,336,399
        
 Fund Balance Policy 10% 
Operating Revenue 
2,748,840.96
     
3,027,340.62
  
3,188,057.57
  
3,350,036.72
  
3,471,710.41
  
3,580,371.51

5-Year Forecast with Current Rates
19
FY24-25 Budget
FY25-26 
Budget
FY26-27 
Budget
FY27-28 
Budget
FY28-FY29 
Budget
FY29-30 
Budget
Beginning Fund Balance
4,786,425
           
2,711,279
        
(266,305)
          
(3,925,039)
      
(8,290,840)
      
(14,986,252)
    
Operating Revenue
27,079,828
        
27,625,928
     
27,860,688
     
28,064,900
     
28,063,375
     
27,880,289
     
Operating Expenditures
(29,154,974)
       
(30,603,512)
    
(31,519,421)
    
(32,030,701)
    
(34,758,787)
    
(36,046,208)
    
Contingency
(200,000)
        
Total Surplus/(Deficit)
(2,075,146)
         
(2,977,584)
      
(3,658,734)
      
(3,965,801)
      
(6,695,412)
      
(8,165,919)
      
Ending Fund Balance
2,711,279
           
(266,305)
          
(3,925,039)
      
(7,890,840)
      
(14,986,252)
    
(23,152,171)
    
 Fund Balance Policy 10% 
Operating Revenue 
2,707,982.77
     
2,762,592.77
  
2,786,068.76
  
2,806,490.04
  
2,806,337.47
  
2,788,028.95

Recommendations/Consensus
20
•Continue the current level of Solid Waste Service
– Residential Refuse Collection
– Residential Recycle Collection
– Monthly Bulk Trash Collection
– Bi-annual Household Hazardous Waste Collection
– Street Sweeping
– Alley Access Control
– Litter Patrol

Recommendations/Consensus
21
•Implement Residential Rate Adjustments

22
•Next Steps