Transfer Station Operations Modernization Plan

What is the TSO?

Transfer Station Operations (TSO) is a utility service function that disposes of solid waste, compost, and recyclables. It often operates seven days a week in peak tourism season. In addition to household collection, the TSO processes trash brought to the center, picks up household furniture, collects and disposes of leaves and branches, and is largely responsible for keeping the community clean, safe, and beautiful. The 12 employees in this department are responsible for handling and processing over 11,500 tons of trash, garbage, recycling, and compost material annually. Ten of the twelve employees are involved in the household collection effort.  

When was the TSO established?

In 1985, the city's landfill was closed, and trash processing for residents began with the city's transfer station operations. City-wide recycling and compost processing began in 1993. 

How is the TSO funded?

Transfer Station Operations are to be supported only by user fees, not property taxes. However, the city has funded deficits from its general fund over the past seven years rather than passing along increases to its residents. 

Why is the city considering raising garbage collection rates? 

Records show that the city has historically struggled with high operational costs in providing trash collection services at a rate that would sustain the operation fiscally and physically, which is required by state statute. Since 1985, rates have only gradually changed despite inflation and higher operational costs. The city has only modified its garbage collection fees three times in 38 years. View a timeline HERE. 

The contract renewal in 2020, combined with impacts from COVID on operations, has created large deficits that must be addressed. Not properly assigning costs or establishing fair user fees has caused the reallocation of funds that otherwise would be used for city projects. 

With 28% of the overall tonnage at the TSO coming from household collections, the process requires a disproportionate amount of labor and equipment as compared to onsite TSO processing. Restoring the transfer station and trash services to solvency is crucial in sustaining the required level of service. If this action is not taken now, other options would require reduced services or contracting with a third party for the household collection services.

What was the 2023 TSO deficit? 

Currently, household garbage, recycling, and compost collection fees account for 50% of the overall operation's revenue for a total amount of $596,096. The cost to provide this service was $964,325 in 2023, resulting in a deficit of $368,229. The household service represents 83% of labor and benefit costs for the entire operation. View the analysis and financial projections HERE.

What is the new rate? 

Beginning April 1, 2024, rates will be $17.50 for household trash and $2.50 for recycling/compost, for a total amount of $20 per month, representing an increase of $2.54/week higher than the rates established in 2013. View the complete rate schedule HERE. 

If rates are being increased, how will the money be used? 

The rate increase is intended to be used for the modernization of the TSO, to reimburse other areas of the city where money has been used to address the deficit and to reserve for future capital expenses. 

What is the modernization plan? 

The city plans to invest in the TSO to address safety, economic sustainability, and efficiency. New equipment with tippers will replace equipment that is past its useful life. This will eliminate the manual handling of trash and reduce workplace injuries and eliminate biohazards such as contact with needles, human waste, and material not supposed to be disposed of in trash receptacles. Also, a capital replacement reserve will be funded annually for the future replacement of outdated equipment such as leaf vacs, skid steers, and lightning loaders. 

A point-of-sale system will be implemented, as well as other measures to reduce manual processing and improve the administration of the operation.  

In 2024: 

  • Compactor trucks with rear tipper- $225,000
  • Compactor bed with tipper and other equipment- $135,000
  • Standardized containers- $325,000
  • Building improvements- $500,000
  • Capital repayments to the city and utilities- $475,000

If the city does not replace equipment on a routine schedule, a replacement will be forced at higher-than-expected prices. 

View the modernization timeline HERE. 

Have the new rates been adopted? 

Yes, Ordinance 2024-2 (view here) was introduced adopted on third reading by City Council on March 5, 2024. 

Can a household opt-out of the city-provided service? 

No. An ordinance passed in July 2008 requires that all single-family residences, occupied or unoccupied, be charged for monthly garbage services. This would include the city-wide recycling service as well. For a city-wide program to succeed, it must have enough scale to afford the required capital investment. Also, it is good public policy to require community-wide sanitation for the health and welfare of our residents.  

Have a question? 

Email us at communityinput@madison-in.gov or give us a call at 812-265-8304. We want to hear from you!