Submitted By: Danielle Phillips
presenter
Presentation By: Darren Park
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Department: Public Works
FORMAL TITLE:
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Resolution 2026-13 concerning a new solid waste rate schedule pursuant to Article IV - Rates and Charges Section 54-121
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OCALA’S RELEVANT STRATEGIC GOALS:
Fiscally Sustainable, Operational Excellence
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The City of Ocala Sanitation Division provides solid waste collection services to 29,453 residential and commercial customers, collecting approximately 68,000 tons annually. Additionally, Waste Pro Inc. collects 3,300 tons of recycling annually through its single-stream curbside recycling program, implemented in 2012.
Solid waste rate increases were approved in 1994, 2003, and 2017-2018, while commercial sanitation rates decreased in 2010. The 2018 solid waste rate study was implemented over five years, with the final adjustment effective October 1, 2020. The rates have remained unchanged since October 1, 2020.
A sequence of events led to the 2017-2018 rate increase. Initially, the long period since the prior 2003 increase necessitated a rate increase to keep pace with inflation-driven increases in operating and capital costs, as well as the transfer to the General Fund. On November 15, 2016, the City Council adopted Resolution 2017-14, which increased monthly sanitation rates for residential and commercial customers beginning January 1, 2017. As approved, residential and commercial sanitation rate increases were phased in over five years, starting on January 1, 2017, and then each subsequent October 1 from 2017 through 2020.
On March 21, 2017, the City Council adopted Resolution 2017-31, which increased monthly sanitation rates for residential customers from May 1, 2017, through September 30, 2018, to cover the cost increase for curbside single-stream recycling following the contract extension. The extension was implemented to align the solid waste disposal and single-stream recycling contract end dates in 2018, with the intent that bidding them together would result in a lower contract cost. The result was one bidder for recycling and one for solid waste disposal-no vendor bid on both. The single-stream recycling bid came in higher than the previous contract.
On May 15, 2018, the City Council adopted Resolution 2018-23, which increased the monthly sanitation rates for residential customers beginning October 1, 2018, implemented over three years, with the final adjustment on October 1, 2020. The rate increase was to cover the additional cost of the single-stream curbside recycling program.
FINDINGS AND CONCLUSIONS:
In September 2024, the City Council approved a contract with Raftelis Financial Consultants, Inc. (Raftelis) to conduct a solid waste revenue sufficiency study.
On October 21, 2025, staff and Raftelis presented the study results to the City Council at a workshop. Under the current solid waste rate schedule, pressures from rising operating and capital costs, higher-than-average inflation, and the transfer to the General Fund will result in expenses exceeding revenues in Fiscal Year 2027. The City Council directed staff to project the rate increase for residential sanitation customers if the single-stream curbside recycling contract were eliminated.
On January 13, 2026, staff and Raftelis presented the results of the request to the City Council at a workshop. The City Council directed staff to proceed with eliminating the single-stream curbside recycling and proceed with the respective lower option rate increase for residential sanitation customers to be phased in over two years, the first in Fiscal Year 25-26, effective March 1, 2026, and the second in Fiscal Year 26-27, effective October 1, 2026, with subsequent annual increases tied to the Bureau of Labor Statistics Consumer Price Index Garbage/Trash Index. Eliminating single-stream curbside recycling would save $2.48 per month per single-family household (i.e., the rate increase would have been $4.30 per month per household).
With this increase, on March 1, 2026, the residential sanitation rates would increase from $26.18 to $28 per month ($1.82), and on October 1, 2026, from $28 to $29.82 per month ($1.82).
For commercial customers, the range of the increase for the most common dumpster sizes and service intervals, which comprise 87 percent of the commercial customer base, would be between $13.17 and $108.03 per month for each year phased in over two years. The first increase in Fiscal Year 2025-26 would take effect on effective March 1, 2026, and the second in Fiscal Year 2026-27, effective October 1, 2026, with subsequent annual increases tied to the Bureau of Labor Statistics Consumer Price Index Garbage/Trash Index.
The increase for Trinity Villas would be phased in over seven years, aligning it with other multifamily developments. The most significant increase would happen in the first two years. The first, effective March 1, 2026, and the second, October 1, 2026, with progressively smaller increases as determined by the prevailing multi-family rate through year seven, when Trinity Villas rates will be the same as the rate for other multi-family developments, with subsequent annual increases tied to the Bureau of Labor Statistics Consumer Price Index Garbage/Trash Index.
Staff recommends approval of the new solid waste rates.
FISCAL IMPACT:
The rate increase is projected to generate sufficient revenue to cover the increase in operating and capital expenses, the current reserve requirement, existing debt service payments, and to maintain the transfer to the General Fund.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
This resolution will be reviewed and approved for form and legality by City Attorney, William E. Sexton.
ALTERNATIVE:
• Approve with Changes
• Table
• Deny
RESOLUTION 2026-13
A RESOLUTION INCREASING THE UNIFORM SCHEDULE OF RATES AND CHARGES FOR THE USE OF SERVICES AND FACILITIES OF THE SOLID WASTE SYSTEM OF THE CITY OF OCALA PURSUANT TO ORDINANCE 54-121 AND RESCINDING ALL PRIOR RESOLUTIONS EFFECTIVE MARCH 1, 2026
WHEREAS,
A. Chapter 54, Article IV, (Rates and Charges) Section 54-121, of the Code of Ordinances of the City of Ocala, Florida, requires the City Council to periodically establish by separate resolution a uniform schedule of rates and charges for the use of the services and facilities of the sanitary municipal solid waste systems of the City; and
B. It has become necessary to increase the fees due to the insufficiency of revenues generated by the current sanitation rates; and
C. Resolution No. 2018-23, adopted by the City of Ocala on May 15, 2018, which established the current rates and charges, is hereby rescinded effective February 28, 2026.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OCALA, FLORIDA, in regular session duly assembled as follows:
1. Resolution No. 2018-23, adopted by the City of Ocala on May 15, 2018, which established the current rates and charges, is hereby rescinded effective February 28, 2026.
2. Attached hereto are the residential and commercial sanitation rate and charge schedules, which shall take effect on March 1, 2026.
This resolution adopted this ______ day of ______________________, 2026.
ATTEST: CITY OF OCALA
By: By:
Angel B. Jacobs Ire J. Bethea Sr.
City Clerk President, Ocala City Council
Approved as to form and legality:
By: _________________________________
William E. Sexton
City Attorney