PowerPoint Presentation

Landfill Rate Discussion
04/08/25

Landfill Rate Discussion
• Background
• Landfill Gate Rate and Approved Fees
• Landfill Cost Factors
• Rate Adjustment 
2

Landfill Overview
• Opened in 1973
• Operates as an Enterprise Fund 
• Processes approximately 460,000 tons annually
• Approx. 40 Years of Life Remaining
• January 2023 Landfill Rate Discussion
•
Minimum Transaction Fee
•
Environmental Fee
3

Landfill Services to Glendale Residents
• Processing location for all COG residential waste.
• Allows for reduced disposal fees 
• Free access 
• One trip per month for up to 1 ton
• Reduced Rate 
• $15.79 per ton
4

Landfill Rate - Definitions
• Gate Rate – Processing fee to dispose of > 2,000lbs
• Minimum Gate Rate – Processing fee to dispose of < 2,000lbs
• Environmental Fee – Covers gas, water, and runoff containment maintenance.
• Hard to Handle Fee – Processing fee for waste that requires special handling.
• Tire Fee – Processing fee to dispose of tires
• Freon Evacuation Fee – Processing fee to remove freon from refrigerators, 
freezers, and AC units. 
5

Current Landfill Charges Compared
Owner
Gate Rate Per Ton
Minimum Fee
Glendale
$38.25*
$35.25*
Phoenix 
$55.00
$40.00
WM
$90.00 - $97.00
$46.00 - $71.00
Salt River Pima             
 Community
$46.50
$25.00
*Does not include environmental fee
6

Changes Affecting Landfill
•Higher gate rates across the valley are driving increased 
tonnage at our Landfill. 
•ADEQ Fee – Disposal fee per ton is increasing each year, the 
increase will follow annual CPI.
•Increased Costs – 
– Construction Costs – Materials and Labor
– Equipment Costs – Repair/Maintenance/Replacements
– Fuel Costs – Increase in Diesel fuel. Operating two cells 
– Insurance Costs – Risk Management/Workers Compensation
7

Landfill Cost Factors
Major Drivers
FY22 Actual
FY 25 Forecast
Difference
% Difference
Diesel Fuel Cost
$416,162
$744,875
$307,018
79%
Insurance Costs
$336,511
$622,379
$285,868
85%
ADEQ Fees
$116,250
$269,700
$153,450
131%
Equipment Costs (Dozer)
$1,175,000
$1,821,000
$646,000
55%
8

Landfill Cost Factors – Trend Analysis
$0
$85,000
$170,000
$255,000
$340,000
$425,000
$510,000
$595,000
$680,000
$765,000
$850,000
Diesel Fuel Cost
FY22
FY23
FY24
FY25
FY26
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
Insurance Costs
FY22
FY23
FY24
FY25
FY26
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
ADEQ Fees
FY22
FY23
FY24
FY25
FY26
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
Equipment Costs
FY22
FY23
FY24
FY25
FY26
9

Five-Year Forecast With Current Rates
10
FY24-25 
Revised Budget
FY25-26 
Budget
FY26-27 
Budget
FY27-28 
Budget
FY28-29 
Budget
FY29-30 
Budget
Beginning Fund Balance
        9,095,266     5,405,800     4,024,735     3,766,530           75,377    (1,793,696)
Operating Revenue
      16,662,675   15,669,999    16,207,050   16,757,473    17,321,600    17,899,773 
Other Revenue
        1,159,160     1,187,406      1,219,496      1,251,192      1,286,693      1,321,759 
Operating Expenditures
    (12,671,094) (13,298,923) (13,823,413) (14,335,519)  (14,871,986) (15,428,619)
Debt Service
         (713,000)      (713,250)      (712,750)      (716,500)       (714,250)      (716,250)
Capital Outlay
      (7,627,208)   (3,726,297)   (3,148,588)   (6,647,799)    (4,891,130)   (1,615,797)
Contingency
         (500,000)      (500,000)                 -                    -                     -                    -   
Total Surplus/(Deficit)
      (3,689,466)   (1,381,065)      (258,204)   (3,691,153)    (1,869,073)    1,460,867 
Ending Fund Balance
       5,405,800     4,024,735      3,766,530          75,377     (1,793,696)      (332,829)
Fund Balance Policy
15% Operating Revenue
    2,684,966 
       2,499,401     2,350,500      2,431,058      2,513,621      2,598,240

Landfill Rate Recommendation
Year
Gate Rate
Min. Fee
ADEQ Fee
Environmen
tal Fee
Tire Fee
Hard to 
Handle
Current
$38.00
$35.00
$0.25
$2.00
$6.00
$139
2025 (July)
$50.00
$45.00
$0.58
$2.00
$7.00
$150
2026 (Jan)
$52.00
$47.00
CPI
$3.00
$8.00
$152
2027 (Jan)
$54.00
$49.00
CPI
$3.00
$8.00
$154
2028 (Jan)
$56.00
$51.00
CPI
$4.00
$9.00
$156
2029 (Jan)
$58.00
$53.00
CPI
$4.00
$9.00
$158
2030 (Jan)
$60.00
$55.00
CPI
$5.00
$10.00
$160
11

Five-Year Forecast With Rate Increase
12
FY24-25 
Revised Budget
FY25-26 
Budget
FY26-27 
Budget
FY27-28 
Budget
FY28-29 
Budget
FY29-30 
Budget
Beginning Fund Balance
        9,095,266      5,919,114     5,427,387     7,295,801      6,133,076     6,724,512 
Operating Revenue
      17,175,989   17,454,337    18,403,669    19,285,901    19,856,104   20,714,529 
Other Revenue
        1,159,160     1,187,406      1,219,496      1,251,192      1,286,693      1,321,759 
Operating Expenditures
    (12,671,094) (13,298,923) (13,823,413) (14,335,519)  (14,871,986) (15,428,619)
Debt Service
         (713,000)      (713,250)      (712,750)      (716,500)       (714,250)      (716,250)
Capital Outlay
      (7,627,208)   (4,621,297)   (3,218,588)   (6,647,799)   (4,965,124)   (6,367,480)
Contingency
         (500,000)      (500,000)                 -                    -                     -                    -   
Total Surplus/(Deficit)
       (3,176,152)      (491,727)     1,868,414    (1,162,725)        591,436       (476,060)
Ending Fund Balance
        5,919,114     5,427,387      7,295,801     6,133,076      6,724,512     6,248,451 
Fund Balance Policy
15% Operating Revenue
     3,107,179 
        2,576,398      2,618,151      2,760,550     2,892,885      2,978,416

Consensus 
There will be no impact on the residents of Glendale 
• FY25 Rate Adjustment to market – July 1, 2025
• Annual Increase in January of each subsequent year. 
• Gate Rate (per ton)
• Minimum Transaction Fee
• Hard to Handle Waste (per ton)
• Tires (Fee per Tire)
• Environmental Fee
13

Next Steps
14
•Council Approval – Subsequent Voting Meeting
•Advertise Rate increases – April – June
•Implement rate increase – July 1, 2025

15
Questions