Zero Waste Advisory Commission discusses rate changes and projects

Austin’s Zero Waste Advisory Commission (ZWAC) met on May 14 where appointees heard a five-year financial forecast for Austin Resource Recovery and a report on the utility’s current projects.

May is typically when city staff present their departmental financial forecasts to boards and commissions to gear up for budget season, and these discussions can sometimes be contentious. ZWAC’s response to the financial forecast this week was relatively neutral, although it’s possible members are holding their comments until the department’s final proposed budget is presented in July.

The topic du jour was the construction of the department’s new Northeast Service Center. A groundbreaking is expected later this year. The city will issue general obligation bonds periodically to cover the cost of construction, with full completion reflected in the forecast for Fiscal Year 2028. (The commission heard a more detailed presentation on the center’s design and layout in December.)

Victoria Rieger, a division manager at Austin Resource Recovery (ARR), said the project was a driver for some of the estimated rate increases in the future. “As we’ve been previously forecasting for Fiscal Year 26…that would be the year that ratepayers…would start to see the impact of the construction of the Northeast Service Center,” she said.

As Rieger segued into the financial estimates, she compared the current budget year to the prior three years. She noted that the percentage of curbside waste diverted from landfills spiked in Fiscal Year 2023 due to Winter Storm Mara, but has since returned to more typical levels.

In Fiscal Year 2025, all ARR operator positions received a market adjustment to their pay (which averaged around 5 percent). The five year forecast includes regular wage increases for all of the department’s staff.

Overall, Austin Resource Recovery’s budget forecast for Fiscal Year 2026 is around $144.1 million – a 9.5 percent increase from the prior year. The five year forecast includes customer rate increases.

ARR is proposing a base fee increase of $4.10 (implemented over five years) and a $0.60 increase to the Residential Clean Community Fee. The rates for all trash cart sizes would also increase.

Rieger noted that ARR conducts an annual cost-of-service analysis to evaluate their rates. This process considers projected customer counts, direct and indirect costs and revenue offsets. The proposed rate increases would account for 28 new employee positions added between 2026 and 2030 that aim to address projected population/customer growth.

Rieger emphasized that these numbers are only a forecast. They have been submitted to the City Manager’s office, and she will return to the commission for another presentation after the City Manager publishes his proposed budget in July. Budget adoption is slated for August 13-15.

“There is no guarantee that this is going to be the final document,” Acuna added. Commissioners seemed to take this to heart, focusing their questions on the ARR projects being funded.

Next, the commission discussed a recent report on operational and administrative projects from Austin Resource Recovery Director Richard McHale.

McHale detailed ARR’s response to the Council resolution directing more litter abatement solutions around encampments in parks. McHale said the department was hoping to shift from a “reactive” to a “proactive” approach, but was working to get caught up on large volumes of waste. He noted that litter abatement is more challenging for areas located in the greenbelt. Cleanups have been conducted around the Onion Creek Greenbelt, Walnut Creek-East, Levander Loop, Govalle Park, and Yaupon/Spicewood Springs.

Assistant Director Amy Slagle answered some questions from appointees about landfill diversion and biohazard management when cleaning up around encampments. “We do try to divert what we can,” she said, adding that sharps and biohazards are always safely disposed of.

McHale also shared that the city is working with the Recycling Partnership to study rates of recycling capture and participation in all ten Council districts. The project will test outreach and engagement strategies to boost participation and reduce recycling contamination. Final results will be shared in December.

Commissioner Melissa Caudle asked about the status of a $4,000,000 grant the city received from the EPA last year to construct a re-use warehouse. Caudle cited a prior conversation about the grant potentially being threatened with the recent federal cuts.

“We don’t see any issues with that,” McHale said. “We still have access to the system that we use to draw down funds.” He added that the current challenge is identifying a location for the warehouse. The grant specifies that the city has three years to secure a property, and about two years remain.

ARR also participated in Austin Energy’s lawn equipment exchange event. Participants in Austin Energy’s Customer Assistance Program dropped off their gas-powered lawn equipment, and were provided with battery or electric powered equipment in return. ARR facilitated the recycling of 66 devices, and another event is in the works.

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