ADMINISTRATIVE REPORT
MEETING DATE: June 25, 2025 AGENDA CATEGORY: Consent - Miscellaneous TO: Honorable Mayor and City Council
FROM: Zachary Meyer, Public Works Director
DATE: June 10, 2025
SUBJECT: Appropriate $2,350,000 Refuse Enterprise Fund Balance to the Public Works Department’s Operating Budget within the Refuse Enterprise Fund.
RECOMMENDATION:
Staff recommends approval appropriation
BACKGROUND:
The Solid Waste Division has reviewed current operating expenses and is projecting a shortfall of approximately $2,350,000 for the FY 2024 -25 budget. To avoid exceeding year -end expenses, staff is requesting appropriation of additional funds from the Refuse Enterprise Fund Balance.
The justification for this request includes:
$1,900,000 – Mt. Vernon Organics Facility:
Over the past year, the volume of materials received and processed at this facility has increased, requiring the division to contract with outside haulers to remove mulch. This has significantly increased the outside services budget line item, necessitating additional appropriation to cover these unanticipated hauling expenses.
Additionally, rental equipment expenses have risen due to the necessity of renting a low-speed shredder to replace the facility’s trommel screen, which was damaged beyond repair in a fire in late 2023. Since then, staff have tested and rented several low -speed shredders and confirmed that this equipment processes material more efficiently, with higher production rates, reduced maintenance, and lower electricity consumption. A new low-speed shredder has been purchased and is scheduled for delivery later this year.
Furthermore, Fleet Division expenditure for internal vehicle use at this facility is projected to exceed the budgeted amount by approximately 5%. Part of this increase is attributable to the cost of offsite fueling for rental equipment.
$266,000 – Material Recovery Facility (MRF):
Based on current Fleet Division expenditure reports, this facility will exceed its budgeted allocation for internal vehicle rates by over 200%. The increase is primarily due to the acquisition of new equipment to support the MRF processing line and the continued need to rent equipment while awaiting delivery of replacement units for aging facility equipment.
Additional expenses have also been incurred in outside services for hauling non-recyclable materials and waste to the landfill.
$184,000 – Curbside/Recycling:
Current Fleet Division expenditure data indicates this account will exceed its budgeted internal vehicle rates by 22.57% for the fiscal year. This overage is the result of new equipment additions during the fiscal year while still having to rely on aging equipment to maintain uninterrupted customer service levels. Aging equipment requires more maintenance and repairs, which causes fleet costs to rise.
FISCAL IMPACT:
There is no General Fund impact with this request. Without this appropriati on adjustment, the Public Works budget will not balance Fiscal Year 2024-2025.
COUNCIL GOAL:
Reliable Infrastructure
Economic Opportunity for All
ATTACHMENTS:
None