Drafter
Clerk 08/20/2026
Title
A MOTION requesting that the executive transmit two reports relating to solid waste division financial planning and rate increase implementation.
Body
WHEREAS, the solid waste division ("the division") has historically proposed fee increases on a biennial cycle, with two one-year increases in a single ordinance, and
WHEREAS, the division proposed a single year fee increase in 2026 to allow the division the opportunity to reprioritize and sequence capital investments and evaluate potential cost savings measures, and
WHEREAS, Proposed Ordinance 2026-0160 would increase fees beginning January 1, 2027, to accept solid waste, yard and clean wood waste, major appliances with refrigerants, mattresses, and special wastes by between 8 percent and 9 percent, depending on the material, and
WHEREAS, Proposed Ordinance 2026-0160 would further increase the amount of the fixed-annual charge from approximately $26.8 million to $29.1 million, an increase of 8.5 percent, and
WHEREAS, Proposed Ordinance 2026-0160 would further increase the low-income discount from twenty dollars to twenty-two dollars per entry, and
WHEREAS, the division has indicated that the revenue generated by the proposed 2027 rate increase would be allocated approximately 32 percent toward operating costs, 55 percent toward debt service supporting capital projects, and 13 percent toward transfers to the landfill reserve fund, and
WHEREAS, the council seeks a deeper understanding of the division's long-term financial planning, as well as a clearer understanding of how the proposed 2027 rate increase would be implemented and how the resulting revenues would support the division's financial plan;
NOW, THEREFORE, BE IT MOVED by the Council of King County:
A. The council requests that the executive transmit a solid waste division rate increase implementation plan for using additional revenue to be collected under Proposed Ordinance 2026-0160 that includes, at a minimum:
1. A spending plan, by major category, including, at a minimum, the operating costs, debt service to support capital projects, and transfers to the landfill reserve fund for the fiscal year 2027. The spending plan should also include a breakdown by major capital projects and by operational categories, such as division administration, landfill operations, transfer station and drop box operations, and waste prevention and recycling, or similar; and
2. A summary of the division's outstanding solid waste system revenue debt and remaining borrowing capacity, including the amount of debt service supported by the proposed 2027 rate increase and how that debt service affects the division's capacity to issue debt for future capital needs.
B. The executive should electronically file the spending plan requested by section A of this motion with the clerk of the council no later than December 31, 2026, before the rate increase adopted under Proposed Ordinance 2026-0160 takes effect on January 1, 2027. The clerk should retain an electronic copy and provide an electronic copy to all councilmembers, the council chief of staff, and the lead staff for the budget and fiscal management committee or its successor.
C. The executive is requested to transmit to the council a solid waste division financial planning report that details information about the division's overall spending and financial planning, operations, and capital program, as follows:
1. For the division's overall spending and financial planning, the report should include, but not be limited to:
a. for the year 2026:
(1) the budgeted and actual capital and operational expenditures for the division;
(2) the division's budgeted and actual reserve balances;
(3) the projected and actual tons of waste received by the county solid waste system; and
(4) the projected and actual number of customers using the low-income fee discount program and the total cost of the program, including the costs to administer the program and forgone revenue. If the number of customers is unavailable, the projected and actual number of transactions using the low-income discount should be substituted;
b. an analysis of the viability of the six-year rate forecast included in the most recent rate increase adopted by the council; and
c. an examination of the low-income discount for source-separated yard waste, clean wood waste, or any combination thereof, including whether the discount continues to serve its intended purpose given that the current per-entry discount would leave a net charge of approximately fifty cents for fixed-rate vehicles and the minimum charge per vehicle in that waste category, and whether an adjustment to the discount amount or structure for that waste category is warranted and/or feasible;
2. For the division's operations, the report should include, but not be limited to:
a. a summary of the projected operational needs that includes the number of full time equivalent personnel for the years 2028 through 2032;
b. a summary of efforts to limit operational cost increases in the year 2026 and an estimate of savings achieved. For the estimate of savings achieved, a rough order of magnitude is sufficient; and
c. a summary of the planned cost saving measures for the year 2027; and
3. For the division's capital program, the report should include, but not be limited to:
a. a list of capital projects that are assumed and enabled by the most recent rate increase adopted by the council that for each project includes the estimated total cost at completion, a progress update, and an expected completion date. The list does not need to include every division capital project and can be limited to those that are being funded with revenues from the most recent rate increase adopted by the council; and
b. a list of projects that have been deferred for cost saving or other purposes, an estimate of the savings achieved by deferral, and the criteria that were used to determine which projects were deferred and which were needed in the near term. For the estimate of savings achieved, a rough order of magnitude is sufficient.
D. The executive should electronically file the financial planning report requested by section C of this motion by May 24, 2027, with the clerk of the council, who should retain an electronic copy and provide an electronic copy to all councilmembers, the council chief of staff, and the lead staff for the budget and fiscal management committee or its successor.