HomeMy WebLinkAboutP.O. NO. 7454 ORDINANCE CHANGEA FOR SOLID WASTE TO ADJUST THE WASTE RATES AT THE LANDFILL. City of ,
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INTEROFFICE MEMORANDUM
Date: September 21, 2026
To: The Honorable Mayor and City Council
Through: Ronald Burton, City Manager
From: Jessie Dehn,P.E.,Director of Public Work
RE: PO No. 7454—Ordinance Changes for Solid Waste to adjust the Waste Rates at
the Landfill
Introduction:
The ordinance changes are intended to help cover the costs that are necessary for the operation
of the Solid Waste Division,which includes operational costs and capital costs for the repair and
replacement of the division's equipment for compliance.
Background:
The City's landfill is permitted through the Texas Commission on Environmental Quality
(TCEQ) to accept multiple types of wastes, including municipal solid waste, appliances,
trees/brush, special wastes, and others. The ordinance changes are intended to amend the rates
for the various waste types received at the Landfill.
Based on preliminary finding in the Solid Waste Master Plan, the Landfill Division is running
at an approximate annual budget shortfall of $1,200,000. Amendment of the rates as
recommended would generate additional revenue by approximately $1,100,000, reducing the
projected annual budget shortfall to an estimated$100,000.Proposed amendment of the Landfill
rates was also included in the presentation to City Council during the Budget Workshop. Other
Solid Waste rates will be reviewed following the completion of the final Solid Waste Master
Plan report.
Budget Impact:
The waste rates would all increase by 50%,according to the following:
- Compact Waste=$9.75/CY
- Non-Compacted Waste=$9.75/CY
- Appliances=$4.50/EA
"Remember,we are here to sere the Citizens of Port Arthur"
City of ,
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- Whole Tires= $9.00/EA
- Tree limbs/Brush=$9.75/CY
- Pull Off Load With Dozer=$7.50/EA
- Special Waste (outside city limits)=$42.00/CY
- Special Waste(business inside city limits)=$19.50/CY
- Heavy Users (under 200,000 CY/year) = $7.50/CY minimum (negotiated rate within
City Manager's Discretion)
- Heavy Users(over 200,000 CY/year)=$4.50/CY minimum(negotiated rate within City
Manager's Discretion)
- Scales=$18.75 first weigh, $4.50 re-weigh
- Municipal Waste= $8.25/CY
The changes are projected to increase revenue by $1,100,000. The updated rate tables will be
posted on the City's website at http://www.portarthurtx.gov/.
Recommendation:
It is recommended that council approve Proposed Ordinance No. 7454,authorizing the proposed
ordinance changes.
"Remember,we are here to serve the Citizens of Port Arthur"
P.O.7454
09/21/2026 JD
Page 1 of 3
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 86(SOLID WASTE),ARTICLE
IV (FEES, CHARGES AND BILLING PROCEDURES), SECTION 86-79
(WHO MAY COLLECT AND DISPOSE OF REFUSE/SECURITY
DEPOSITS)OF THE CODE OF ORDINANCES,CITY OF PORT ARTHUR,
TEXAS, BY AMENDING RATES FOR THE DISPOSAL OF REFUSE AT
THE MUNICIPAL LANDFILL AND PROVIDING FOR PUBLICATION.
WHEREAS, the City Council deems it to be in the public interest of the City to amend
Chapter 86(Solid Waste)of the Code of Ordinances as it pertains to rates for the disposal of refuse
at the municipal landfill.
NOW THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR, TEXAS:
Section 1. That the facts and opinions in the preamble are true and correct.
Section 2. That Chapter 86(Solid Waste)of the Code of Ordinances of the City of Port
Arthur, Texas, is hereby amended as delineated in Exhibit "A", with a clean copy attached as
Exhibit"B".
Section 3. All Ordinances and parts of Ordinances in conflict with this Ordinance are
hereby repealed to the extent of the conflict.
Section 4. That this being an Ordinance which requires publication, its caption shall
be published at least one (1) time within ten (10) days after final passage hereof in the official
newspaper of the City of Port Arthur, and this Ordinance shall take effect immediately after the
date of publication.
Section 5. That a copy of the caption of the Ordinance be spread upon the Minutes of
the City Council.
P.O.7454
09/21/2026 JD
Page 2 of 3
READ, ADOPTED, AND APPROVED, this day of , 2026
AD, at a regular meeting of the City Council of the City of Port Arthur, Texas, by the following
vote: AYES: Mayor:
Councilmembers:
•
NOES:
Charlotte M. Moses
Mayor
ATTEST:
Christe Whitley Ned, TRMC
City Secretary
P. O.7454
09/21/2026 JD
Page 3 of 3
APPROVED AS TO FORM:
Roxann Pais Cotroneo, Esq.
City Attorney
APPROVED FOR ADMINISTRATION:
Rona17:'on, CPM
City16. ager
Jessie Dehn, P.E.
Director of Public Works
APPROVED AS TO THE AVAILABILITY OF FUNDS:
Lynda B w , PhD, ICMA-CM
Finance Director
wJL
Clifton E. Williams, Jr., CPPB
Purchasing Manager
P.O.No.7454
EXHIBIT A
RED-LINED VERSION
Sec. 86-79.Who may collect and dispose of refuse/security deposits.
(a) All refuse accumulated within the city shall be collected,transported and disposed of only by the city,and no
person or commercial haulers shall collect or transport refuse over any streets of the city or dispose of any
refuse except where engaged in or providing a type of service not provided by the city.
(b) The actual producer of refuse,or the owner of the premises where the refuse is produced(or the agent of
either person), may collect,transport,and dispose of such refuse at the city's landfill.Any commercial or
industrial establishment(or their agent)or any federal,state,or local entity producing refuse may collect,
transport,and dispose of such refuse at the city's landfill.Such producer,owner,or agent which disposes of
such refuse at the city's landfill on an intermittent schedule shall be required to pay a fee in accordance with
the rate schedule shown in this section.
(c) Any person duly authorized to engage in the commercial hauling of refuse on a regular schedule must make
contractual arrangements in accordance with the contract form set forth in Exhibit"B",attached to[the
ordinance from which this section is derived] and made a part of this section,before depositing any refuse at
the city's landfill.Such contract shall provide for monthly payments in accordance with such rate schedule,
shall further provide for a security deposit in advance in the minimum amount of$2,500.00,or such other
amount as determined by the city manager or his designee, and based on the proposed usage of the landfill
and the payment history of the hauler,to be held to secure any proposed delinquent charges.The business
entity shall also file a DBA certificate,articles of incorporation,and/or partnership agreement to show its
structure and its registered agent. Further,all such producers,owners,and agents shall comply with the
provisions of this chapter and with any other applicable statutes and ordinances.
(d) When a customer applies for service,he/she must also submit a security deposit in one of the following
forms:
(1) Cash;
(2) Guaranty bond;
(3) Letter of credit drawn on a state or federally charters lending institution.
(e) The director of utility services,with the written consent of the city manager,may refuse or discontinue
service if a person fails to:
(1) Make a required security deposit with his application;or
(2) Increase the amount of his security deposit after being notified that an increase is required.
(f) Any non-cash security deposit must be submitted in a form provided by the director of utility services and in
a form approved by city attorney.
(g) The director of utility services shall keep accurate records of all security deposits, including,but not limited
to,the depositor's name,amounts deposited,and separate accounts of all security deposits.
(h) Rate schedule.
Waste type Cost per unit
Compacted waste $b-509.75 per cubic yard
Non-compacted waste $6,509.75 per cubic yard
Appliances $44)04.50 each
Whole tires $64)09.00 each
Tree limbs/brush $6.501.50 per cubic yard
Created: 2026-07-01 10:56:48 [EST]
(Supp.No.47)
Page 1 of 2
Pull off load $54197.50 per Toad
with dozer
Heavy users under 200,000 cubic yard (as Within the city manager's discretion
negotiated by the city manager) $5,097.50 per cubic yard minimum
Heavy users 200,000 cubic yards or more per $3494.50 per cubic yard minimum
year(if the 200,000 cubic yards per year
minimum is not met, the contractor will be
billed the $5.00 per cubic yard rate for the
total volume received at the landfill under
the 200,000 yards per year)
Scales $12.5018.75 first weigh
and re-weigh $34994.50
Special waste $284)942.00 per cubic yard
Special waste for business located inside the $13.0019.50 per cubic yard
city limits
Municipal waste $5.508.25 per cubic yard
(Code 1961, §10-12;Ord. No.00-60, §2, 10-3-2000;Ord.No.05-20,§§4,5,3-15-2005;Ord. No.05-76, §2, 10-11-
2005;Ord. No.06-44, §2,7-5-2006;Ord. No.06-55, §2,7-18-2006;Ord. No.06-62,§2,8-15-2006; Ord. No. 12-26,
§2,4-3-2012;Ord. No. 16-05, §2, 1-12-2016;Ord. No. 17-34, Exh.A,9-12-2017;Ord. No. 18-74,§2(Exh.A), 12-18-
2018;Ord. No.21-76, §2(Exh.A), 10-26-2021;Ord. No.22-48,§2(Exh.A),7-5-2022;Ord. No.23-08,§2(Exh.A),3-
14-2023)
Created: 2026-07-01 10:56:48 [EST]
(Supp.No.47)
Page 2of2
P.O.No.7454
EXHIBIT B
CLEAN VERSION
Sec. 86-79. Who may collect and dispose of refuse/security deposits.
(a) All refuse accumulated within the city shall be collected,transported and disposed of only by the city,and no
person or commercial haulers shall collect or transport refuse over any streets of the city or dispose of any
refuse except where engaged in or providing a type of service not provided by the city.
(b) The actual producer of refuse,or the owner of the premises where the refuse is produced (or the agent of
either person), may collect,transport,and dispose of such refuse at the city's landfill.Any commercial or
industrial establishment(or their agent)or any federal,state,or local entity producing refuse may collect,
transport,and dispose of such refuse at the city's landfill.Such producer,owner,or agent which disposes of
such refuse at the city's landfill on an intermittent schedule shall be required to pay a fee in accordance with
the rate schedule shown in this section.
(c) Any person duly authorized to engage in the commercial hauling of refuse on a regular schedule must make
contractual arrangements in accordance with the contract form set forth in Exhibit"B",attached to[the
ordinance from which this section is derived] and made a part of this section, before depositing any refuse at
the city's landfill.Such contract shall provide for monthly payments in accordance with such rate schedule,
shall further provide for a security deposit in advance in the minimum amount of$2,500.00,or such other
amount as determined by the city manager or his designee,and based on the proposed usage of the landfill
and the payment history of the hauler,to be held to secure any proposed delinquent charges.The business
entity shall also file a DBA certificate,articles of incorporation,and/or partnership agreement to show its
structure and its registered agent. Further,all such producers, owners,and agents shall comply with the
provisions of this chapter and with any other applicable statutes and ordinances.
(d) When a customer applies for service,he/she must also submit a security deposit in one of the following
forms:
(1) Cash;
(2) Guaranty bond;
(3) Letter of credit drawn on a state or federally charters lending institution.
(e) The director of utility services,with the written consent of the city manager,may refuse or discontinue
service if a person fails to:
(1) Make a required security deposit with his application;or
(2) Increase the amount of his security deposit after being notified that an increase is required.
(f) Any non-cash security deposit must be submitted in a form provided by the director of utility services and in
a form approved by city attorney.
(g) The director of utility services shall keep accurate records of all security deposits,including,but not limited
to,the depositor's name,amounts deposited, and separate accounts of all security deposits.
(h) Rate schedule.
Waste type Cost per unit
Compacted waste $9.75 per cubic yard
Non-compacted waste $9.75 per cubic yard
Appliances $4.50 each
Whole tires $9.00 each
Tree limbs/brush $4.50 per cubic yard
Created: 2026-07-01 10:56:48 [EST]
(Supp.No.47)
Page 1 of 2
A
Pull off load $7.50 per load
with dozer
Heavy users under 200,000 cubic yard (as Within the city manager's discretion
negotiated by the city manager) $7.50 per cubic yard minimum
Heavy users 200,000 cubic yards or more per $4.50 per cubic yard minimum
year (if the 200,000 cubic yards per year
minimum is not met, the contractor will be
billed the $5.00 per cubic yard rate for the
total volume received at the landfill under
the 200,000 yards per year)
Scales $18.75 first weigh
and re-weigh $4.50
Special waste $42.00 per cubic yard
Special waste for business located inside the $19.50 per cubic yard
city limits
Municipal waste $8.25 per cubic yard
(Code 1961,§ 10-12;Ord. No.00-60, §2, 10-3-2000;Ord. No.05-20, §§4,5,3-15-2005;Ord. No.05-76,§2, 10-11-
2005; Ord. No.06-44, §2, 7-5-2006; Ord. No.06-55,§2,7-18-2006;Ord. No.06-62,§2,8-15-2006;Ord.No. 12-26,
§2,4-3-2012;Ord. No. 16-05, §2, 1-12-2016;Ord. No. 17-34, Exh.A,9-12-2017;Ord. No. 18-74,§2(Exh.A), 12-18-
2018;Ord. No. 21-76,§2(Exh.A), 10-26-2021;Ord. No. 22-48,§2(Exh.A),7-5-2022;Ord. No.23-08,§2(Exh.A),3-
14-2023)
Created: 2026-07-01 10:56:48 [EST]
(Supp.No.47)
Page 2 of 2
EXHIBIT C
PORT ARTHUR
TEXAS
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BASELINE OF THE " � _ • `� '` • '
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SOLID WASTE MASTER PLAN
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This page left intentionally blank to facilitate double-sided printing.
Table of Contents
Section 1 Introduction 1-1
1.1 Purpose and Background 1-1
1.2 Location,Government, and Economic Context 1-1
Overview and Regional Setting 1-1
Climate and Environmental Vulnerability 1-2
Economic Context 1-2
Governance 1-3
Solid Waste Division 1-3
1.3 Population and Demographics 1-3
Section 2 Solid Waste System Overview 2-1
2.1 Education and Outreach 2-1
2.2 Generation 2-3
Tonnage Projection 2-3
Composition of Waste 2-5
2.3 Collection 2-6
Residential Garbage Collection 2-6
Residential Bulk Trash Collection 2-8
Commercial Garbage Collection 2-8
2.4 Disposal 2-9
2.5 Other Facilities/Infrastructure 2-11
Section 3 Preliminary Financial Analysis 3-1
3.1 Five-Year Forecast 3-1
Test Year 3-1
Inflation Factors 3-2
Revenue Requirement Forecast 3-2
3.2 Cost of Service 3-3
Residential Garbage Collection 3-3
Residential Bulk Trash Collection 3-4
Commercial Garbage Collection 3-5
Disposal (Landfill) 3-5
3.3 Rate Planning 3-6
Current Revenue 3-6
Reserves 3-8
Rate Adjustment Recommendations 3-8
Section 4 Key Findings and Preliminary Needs,Gaps,and Opportunities Assessment 4-1
4.1 Population 4-1
4.2 Education and Outreach 4-1
4.3 Generation 4-1
4.4 Collection 4-1
4.5 Disposal 4-2
4.6 Other Facilities/Infrastructure 4-2
4.7 Preliminary Financial Analysis 4-2
Baseline Overview
I
Table of Contents
List of Tables
Table 1-1 Population Projections 1-3
Table 2-1 Tonnage Projections 2-4
Table 2-2 Estimated Composition of Port Arthur Tons 2-5
Table 3-1 City Proposed FY 2026 Budget&Test Year 3-1
Table 3-2 Five-Year Revenue Requirement Forecast 3-3
Table 3-3 Residential Garbage Collection Cost of Service 3-4
Table 3-4 Residential Bulk Trash Collection Cost of Service 3-4
Table 3-5 Commercial Garbage Collection Rates 3-5
Table 3-6 Commercial Garbage Collection Cost of Service 3-5
Table 3-7 Disposal (Landfill)Cost of Service 3-6
Table 3-8 Over/(Under) Recovery with Current Rates 3-7
List of Figures
Figure 1-1 Five Steps to Effective Master Planning 1-1
Figure 1-2 Port Arthur Location 1-2
Figure 1-3 Population Projections 1-4
Figure 2-1 Public Works Frequently Asked Questions Webpage 2-1
Figure 2-2 Guidelines of Garbage/Trash Pickup 2-2
Figure 2-3 Interactive Garbage Pick-Up Schedule Map 2-3
Figure 2-4 Tonnage Projections 2-4
Figure 2-5 Composition of Waste 2-5
Figure 2-6 Estimated Composition of Port Arthur Tons 2-6
Figure 2-7 Automated Side Loader 2-7
Figure 2-8 Bulk Trash Zones 2-8
Figure 2-9 Commercial Front Load Vehicle 2-9
Figure 2-10 Port Arthur Landfill Reported Annual Tonnage 2-10
Figure 3-1 Over/(Under) Recovery by Customer Class 3-7
11
ii Baseline Overview
SECTION 1
INTRODUCTION
1 .1 Purpose and Background
The City of Port Arthur (City) retained NewGen Strategies and Solutions, LLC (NewGen) to develop the
City's Solid Waste Master Plan. The purpose of the planning process is to serve as an informed decision-
making tool that evaluates the existing solid waste management system and potential improvements or
changes to it. Through this planning process, the City seeks to conduct analysis of existing conditions,
resulting in goals and objectives with strategies, expenditure estimates, and revenue recommendations
for the solid waste system.
A critical first step in developing an effective master plan is establishing a comprehensive understanding
of the current system. Accordingly,this baseline report provides an overview of the solid waste system's
existing operational and fiscal conditions, including current programs, policies, and infrastructure. It also
offers an initial assessment of key challenges and opportunities, while identifying factors that may
influence future trends and requirements over the forecasted planning period. Note that a separate
report titled "Collection Assessment Report" provides a detailed assessment of the current collection
system. This report provides an overview of the entire solid waste system. Together, these reports
summarize step one in the five-step process depicted in Figure 1-1 to developing the master plan. Future
tasks will result in additional reports.
t O r- CID CD 0
BASELINE IDENTIFY EVALUATE IDENTIFY DEVELOP
UNDERSTANDING POTENTIAL CHANGES POTENTIAL CHANGES BEST OPTIONS IMPLEMENTATION PLAN
A holistic view of Identify needs, Consider financial, Share findings and A realistic and
the system sets the opportunities,and social,and decide what makes comprehensive
stage for the potential strategies environmental sense for the plan to achieve the
1 planning process impacts community set objectives
• • STAKEHOLDER OUTREACH • •
Figure 1-1 Five Steps to Effective Master Planning
1.2 Location, Government, and Economic Context
Overview and Regional Setting
Port Arthur is a coastal city in southeast Texas located approximately 90 miles east of the Houston
metropolitan area. The city is part of the Beaumont—Port Arthur metropolitan region and lies primarily
within Jefferson County,with a small extension into Orange County. Positioned along the Gulf of Mexico
and the Sabine—Neches Waterway, Port Arthur developed as a major seaport and industrial center with
strong ties to energy,transportation, and maritime activity.
The city's limits extend southward to the Gulf shoreline and include important transportation and
maritime connections.The Rainbow Bridge across the Neches River links Port Arthur with Bridge City and
surrounding communities.The city is bordered by Orange County to the northeast and by Cameron Parish,
Louisiana, across Sabine Lake to the southeast, with nearby municipalities including Nederland, Groves,
Baseline Overview 1-1
Section 1
and Port Neches. Key neighborhoods and communities within Port Arthur include El Vista, Griffing Park,
Lakeview, Pear Ridge, Port Acres, Sabine Pass, and the West Side.
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Figure 1-2 Port Arthur Location
Climate and Environmental Vulnerability
Due to its Gulf Coast location, Port Arthur is highly vulnerable to hurricanes,tropical storms, tornadoes,
extreme heat, and high humidity. The city has experienced multiple severe weather events that have
caused significant damage and disruption, making resilience planning an important consideration for
infrastructure and continuity of services including solid waste management.
Economic Context
Port Arthur is a critical hub in the U.S. oil refining and fuels economy, anchored by some of the nation's
largest energy facilities and supported by the Port of Port Arthur and the Sabine—Neches Waterway.
Motiva Enterprises' Port Arthur Refinery is now the largest single refinery in the United States, with a
reported crude oil processing capacity of roughly 640,500 barrels per day, according to the U.S. Energy
Information Administration's 2024 refinery capacity data.'
The region's refining and chemical infrastructure includes extensive marine terminals and logistics
operations along the Sabine—Neches Waterway. These facilities support a wide range of petroleum and
chemical products, contribute significantly to regional employment, and underpin the broader economic
activity of the Beaumont—Port Arthur area.'
'httos://energynow.com/2025/06/us-refinery-capacity-grew-by-nearly-40000-bpd-to-18-4-million-bpd-in-2024
Z https://comptroller.texas.gov/economv/economic-data/ports/2018/port-arthur.php
1-2 Baseline Overview
Introduction
Governance
The City of Port Arthur operates under a council-manager form of government.The City Council serves as
the city's legislative and policy-setting body and appoints key officials including the City Manager, City
Attorney, City Secretary, and other administrators. The Council consists of a Mayor and six
Councilmembers elected to three-year terms, with limits on consecutive service. Elected officials serve
under a mixed election system that includes both at-large seats (representing the entire city) and single-
member districts(representing defined areas).3
Solid Waste Division
The City of Port Arthur Public Works Department is responsible for the repair,operation,and maintenance
of essential municipal infrastructure and services, including streets, traffic control devices, storm water
drainage, facilities,fleet operations, and solid waste management. Within Public Works,the Solid Waste
Division provides residential garbage, residential bulk trash (including vegetative) and commercial
garbage collection services using municipal crews and supported by the City's ownership and operation
of a local landfill. Residents are encouraged to follow disposal requirements outlined in City Ordinance
Chapter 86. While the City does not currently offer curbside recycling services, it promotes the use of
private recycling facilities available within the region.
1.3 Population and Demographics
Port Arthur is a mid-sized Gulf Coast city whose population trends reflect broader economic and regional
patterns. U.S. Census data indicate that the city experienced a population decline in the early 2000s
followed by modest stabilization. The population was 57,755 in 2000 and 53,818 in 2010, increasing to
56,039 in 2020.The most recent U.S.Census Bureau estimate places the 2024 population at approximately
55,799 residents,indicating relative stability with only minor change since 2020. For projecting population
for the next ten years, a modest increase of 1%over the next ten years is estimated, which would mean
approximately 0.1% per year growth in population. Table 1-1 and Figure 1-3 show the results of the
population projections. Over the ten-year planning period, population would grow from 55,911 in 2026
to 56,472 in 2036.
Table 1-1
Population Projections
Year Population Estimate
2024 55,799
2025 55,855
2026 55,911
2027 55,967
2028 56,023
2029 56,079
2030 56,135
2031 56,191
3 https://www.portarthurtx.gov/250/Citv-Council
Baseline Overview 1-3
Section 1
Year Population Estimate
2032 56,247
2033 56,303
2034 56,360
2035 56,416
2036 56,472
56,600
56,500
56,400
56,300
56,200
56,100
56,000
55,900
55,800
55,700
55,600
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
Figure 1-3 Population Projections
Port Arthur's population continues to reflect a relatively young and diverse community.According to the
U.S. Census Bureau, about 27.5%of residents are under 18 years old,while 14.8%are 65 years or older.
The gender distribution is nearly even, with females making up roughly 50.2 % of the population.
Approximately 20.3 % of residents are foreign-born, and households average about 2.55 people per
household,with high residential stability— over 92%of persons aged 1 year and older lived in the same
house one year ago. Educational attainment shows that 78.6 % of adults 25 and older are high school
graduates or higher, though only 12.8 % have a bachelor's degree or higher. These trends influence
community needs, workforce characteristics, and long-term service planning, including solid waste
generation projections and outreach efforts.
Port Arthur is racially and ethnically diverse. Census Bureau data show that the city's population includes
significant proportions of Black or African American (about 42.3%) and Hispanic or Latino (about 36.4%)
residents, with smaller percentages of White, Asian, and multiracial individuals. Median household
income is estimated at around $46,354, with a per capita income of$26,496, and approximately 29% of
residents live below the poverty line—all factors that shape consumption patterns and household waste
characteristics. In terms of housing, 58 % of units are owner-occupied, while the rest are rented, and
median gross rent is about$1,021 per month. Language diversity is notable,with 35%of persons aged 5
and over speaking a language other than English at home, and most households have a computer and
broadband access,which can support digital outreach for waste programs.4
4 https://www.census.gov/quickfacts/fact/table/portarthurcitvtexas/PST045224
1-4 Baseline Overview
SECTION 2
SOLID WASTE SYSTEM OVERVIEW
2.1 Education and Outreach
Port Arthur's Public Works Solid Waste Division provides residents with operational guidance and
collection tips via official webpages and city communications to encourage proper waste placement and
adherence to service rules. Residents can find their schedule, request a toter (cart), see the Holiday
Schedule and view an interactive Garbage Pick-Up Schedule Map on the main solid waste webpage.56
Residents can also search the Public Works Frequently Asked Questions FAQs for general information.'
Additionally,the City provides weekly trash collection updates that describe daily collection activities.
Recent developments, such as the groundbreaking of the City's first recycling center, suggest emerging
opportunities for expanded public education and outreach on recycling and waste reduction.
Frequently Asked Questions
ycu N ln.,r,orr,anor,rnat x xht,neto you andersta hn,.ro i .i
'Mel orl yo,•r^,ght need to know about your cry or town,
Public Works &',
All(j otOut
Tips for Residential Garbage Collection
What time does my garbage toter need to be out at the street? v
What can I do if I missed the garbage truck because my toter
wasn't out in time?
What If my toter was out on time and it didn't get picked up?
Why is my toter lid broken?
Who do I call to report a street light that is Out? N.
Figure 2.1 Public Works Frequently Asked Questions Webpage
5 https://www.portarthurtx.gov/205/Solid-Waste
6 https://www.portarthurtx.gov/644/Guidelines-of-GarbageTrash-Pickup
'https://www.portarthurtx.gov/m/faq?cat=26#question-115
Baseline Overview 2-1
Section 2
GUIDELINES OF r-
GARBAGE/TRASH `�= \`- �
PICKUPS
Residential Garbage Collection-Ciazers Should:
• Have garbage cans placed an the curb or roadside by 7 00 a.m. • Househola Items,such as appliances and furniture
on their scheduled collection day • Brush and Tree Limbs that are cut into 4-foot lengths and staCkec:
• make sure garbage cans are placed properly,with handles neatly
facing their residence • an loose trash(such as leaves,grass clippings.books.papers)
• Put only garbage/light household trash in garbage cans
City Crews CANNOT Collect
Residential Garbage Collection-Citizens Should NOT:
• Roofing,demolition,or construction material
• Place their garbage can near vehicles,mailboxes,fences or any
other property that could be damaged during servicing • Concrete,brick or asbestos
• Place large or heavy items in the garbage can •
Hazardous,toxic,or flammable waste
• Liquids of any type
(such as TVs.wood,brink concrete.hot coals,ashes,etc.)
• Batteries,ail,or oil filters
• Medical waste of any type
CANS SHOULD BE PLACED ON THE
" �2 'to z CURB/ROADSIDE BY 7 A.M .
9 3 t
0 a
a 7 6 5
GARBAGE CANS SHOULD BE
AT LEAST 3 FEET AWAY
FROM MAILBOXES AND CARS
GARBAGE CANS SHOUI.0 SE
SET IN A WAY WHERE THE
HANDLE FACES THE 1JJ•
RESIDENCE
"*"\\*
3 FT 3 FT
II ; • F--g
all AM al a NM at MN MN a fla
Figure 2-2 Guidelines of Garbage/Trash Pickup
2-2 Baseline Overview
Solid Waste System Overview
Interactive Garbage Pickup Schedules Map
The City of Port Arthur provides an interactive solid waste collection map on its website that allows
residents to locate their address and determine their scheduled collection days.'This tool helps residents
easily identify service schedules and supports communication of collection services.
City of Port Arthur-Garbage Pick-Up Schedule
i.
Garbage Pick-Up Day x
7acs�eroares // J ` ` • sj.
Scheduled_ TF,,r;day t Babe ZaNr
Galtcouna
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Figure 2-3 Interactive Garbage Pick-Up Schedule Map
2.2 Generation
Tonnage Projection
The tonnage generation projections are based on population, per Census information as described in
Section 1.3, as well as annual tonnage data for the City of Port Arthur Landfill as provided in the Texas
Commission on Environmental Quality(TCEQ)annual reporting data. The most recent available data from
the TCEQ annual report is for Fiscal Year 2024,which is September 1, 2023,through August 31, 2024. Per
the TCEQ annual report for FY2024,the City's landfill received approximately 169,529 tons of waste. Using
2024 population of 55,799 and FY2024 tons of waste of 169,529, an average of 3.04 tons per capita is
estimated. The average tons per capita per year is used to project tons for the planning period as shown
in Table 2-1 and Figure 2-4.Over the ten-year planning period,tonnage is estimated to grow from 169,868
in 2026 to 171,575 in 2036.
I8 https://copa.maps.arcgis.com/apps/instant/insets/index.html?appid=33e6b2291da54176bf3054cc13cdee53
1 Baseline Overview 2-3
Section 2
Table 2-1
Tonnage Projections
Year Tonnage Estimate
2024 169,529
2025 169,699
2026 169,868
2027 170,038
2028 170,208
2029 170,378
2030 170,549
2031 170,719
2032 170,890
2033 171,061
2034 171,232
2035 171,403
2036 171,575
172,000
171,500
171,000
170,500
170,000
169,500
169,000
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
Figure 2-4 Tonnage Projections
These projections assume no material changes in the City's policies, programs, participating entities, or
facilities over the planning period, and account only for tonnage increases resulting from projected
population growth within the City. As the planning process continues,the baseline generation projections
may be adjusted as needed to reflect the anticipated impacts of proposed changes being considered for
implementation in the solid waste master plan.
2-4 Baseline Overview
Solid Waste System Overview
Composition of Waste
No recent waste composition studies have been conducted specifically for the state of Texas. In the
absence of state-level data, it was determined that a broader, nationally representative source would
provide the most appropriate basis for analysis.To that end,data from the U.S. Environmental Protection
Agency's (EPA) report on municipal solid waste (MSW) were utilized to characterize the waste stream.
The EPA report, published in December 2020, is based on data from calendar year 2018 and provides a
comprehensive overview of municipal solid waste generation. The composition information included in
the EPA report is shown in Figure 2-5. The largest constituents are shown to be paper and cardboard
(23%),food (22%),yard trimmings (12%), and plastic(12%).
and
Food CardboarPaperd
22% 23%
Yard Trimmings
12% Metals
9%
,
Rubber,
Leather& Plastics
Textiles 12%
9%
Figure 2-5 Composition of Waste
Table 2-2 and Figure 2-6 below show the results of applying the EPA composition percentages to the City's
landfilled tonnage data,which provides an approximation of the composition of the waste stream in Port
Arthur.
Table 2-2
Estimated Composition of Port Arthur Tons
Material MSW Generation (by Material)
Paper and Cardboard 39,200
Glass 7,127
Metals 14,933
Baseline Overview 2-5
Section 2
Material MSW Generation (by Material)
Plastics 20,703
Rubber,Leather&Textiles 15,103
Wood 10,521
Yard Trimmings 20,534
Food 36,655
Other 4,921
Other
4,921
Paper and
Food Cardboard
36,655 39,200
Yard Trimmings
20,534 Metals 14,933
Rubber, Plastics
Leather& 20,703
Textiles
4411/7
15,103
Figure 2.6 Estimated Composition of Port Arthur Tons
2.3 Collection
Residential Garbage Collection
The City currently provides residential garbage collection service to customers with City-provided
96-gallon garbage carts once per week.Residents are issued one 96-gallon cart as part of standard service,
but residents may request and receive an additional cart for an additional monthly fee.Per City Ordinance,
Chapter 86, for each residence within the city,there is a fee of$20.50 per month for the first automated
collection cart and $7.50 per month for each additional automated collection can. This fee may be paid
by the occupant of the residence; however, the owner of the residence is ultimately responsible for the
payment, provided that:
2-6 Baseline Overview
Solid Waste System Overview
• Where water service to a residence is discontinued by the utility operations department because
of vacancy, the fee shall not be charged for the period of time during which the water service is
discontinued.
• Where, at the request of the owner, a residence has been certified by the community service
department as unfit for human habitation,the fee shall not be charged for the period during which
the residence is not used as a dwelling because it is, in fact, unfit for human habitation
• The payment of this fee entitles one customer to one regular garbage collection service per week.
• If the average volume of collection exceeds the size of the garbage container (64-gallon or 96-
gallon), issued to the customer,the customer will be required to go to the 96-gallon or obtain an
additional 64-gallon or 96-gallon size garbage container to adequately serve the customer's needs.
For each additional container used the customer will be charged an additional $2.00 per month.
The average volume shall be checked(and corrected if necessary) by the superintendent at regular
intervals.
• Garbage containers must be placed curb side by 7am on collection day and removed from the curb
by 8pm on the same day. Residents should not leave containers at the curb overnight following
collection day.
• All garbage other than heavy trash items (old furniture, household furnishings, yard waste, etc.)
must be placed inside the 96-gallon container for pick-up. Waste that is outside the container will
not be collected, and could result in a ticket and fine.
The City uses automated side loaders (ASLs)to service residential garbage customers.
-
4 � F
- a
"
w ,
wrw _
•
.may
eg
100
111,
i r ...
u„'yr da,v
Figure 2-7 Automated Side Loader
More details regarding residential garbage collection service are provided in the Collection Assessment
Report.
Baseline Overview 2-7
Section 2
Residential Bulk Trash Collection
The City provides residents with weekly curbside collection of bulk trash. Residential bulk trash collection
is conducted using Grapple vehicles with two operators. Collection for "Zone 1" delineated to be
conducted on Mondays and Thursdays, and "Zone 2" is delineated to be conducted Tuesdays and
Wednesdays. Figure 2-8 shows a map of Zone 1 and Zone 2. The Grapple routes are conducted with a
driver and an operator on each vehicle. When the operator is operating the grapple claw,the driver serves
as a spotter and assists with raking the area as needed after loads are collected.
r ! -- r- 'turd
1 �` i s '` -' City of Port Arthur
ti• s '" ' yl.r`. . \.r Trash Schedule
..� -fit, l �5' t� �! ,.'.. �• �i 1MY ��ee'w6 '
�, / _ a ...� ! ,�}� 0. Legend
lam S L. *.- ."f;a t :` Trash Schedule Areas
�, , � ZONE S _ ! - � ,�
.)kL.,
"�' - i4 —
re
-� L Wednesday i
ZONE!!F
SafiewS P � � va _�.. .. f -_--
Mr
/* I e L..--I-1 - !'_:
iTMasday , 3 4 4
/ 04111 v.. }L"'[i �'r. I I lse ,1ti I I...k i# s l i 4
ard.l ±" r tilMldaY j` l' 1 f.1 Tuesday
-- j
V 1
Monday ....„, ' .-
Figure 2-8 Bulk Trash Zones
More details regarding residential bulk trash collection service are provided in the Collection
Assessment Report.
Commercial Garbage Collection
The City currently provides commercial garbage collection service to approximately 900 dumpsters,which
is performed using 28-cubic-yard capacity Front Load vehicles. The City offers two dumpster sizes,4 cubic
yards or 8 cubic yards,and frequency of collections per week(i.e.one to six times per week)are provided.
Given the number of dumpsters collected multiple times per week, the City tips approximately 2,350
dumpsters per week. Dumpster customers include businesses and multifamily dwellings. The City uses
front loaders (FLs)to service commercial garbage customers.
2-8 Baseline Overview
Solid Waste System Overview
•
Alter
Figure 2-9 Commercial Front Load Vehicle
More details regarding commercial garbage collection service are provided in the Collection Assessment
Report.
2.4 Disposal
The City owns and operates the City of Port Arthur Landfill, located at 4732 Texas Highway 73 West in
Jefferson County.The landfill serves as the primary disposal facility for waste collected through the City's
solid waste system and is a key component of the City's overall waste management infrastructure. In
addition to receiving municipally collected waste, the facility also accepts waste delivered directly by
residents and commercial haulers in accordance with established operating requirements. The City
currently charges a disposal rate of$6.50 per cubic yard for both compacted and non-compacted waste.
TCEQ annual reporting data indicates that the landfill has remained active for more than two decades,
with annual disposal volumes generally ranging from approximately 90,000 tons to more than 230,000
tons depending on year-to-year conditions.'Based on the most recent available data(FY2024),the landfill
received approximately 169,529 tons of waste and reported approximately 13.76 million cubic yards of
remaining permitted capacity, equivalent to approximately 11.38 million tons of remaining disposal
capacity. At current disposal rates, this represents an estimated remaining site life of approximately 73
years.
Historical reporting also demonstrates variability in annual disposal volumes, with higher tonnage years
such as 2009(234,430 tons)and 2021(188,724 tons),and lower tonnage years such as 2005(89,948 tons).
In addition, remaining capacity values increased significantly between 2005 and 2006, suggesting that a
9 Texas Commission on Environmental Quality(TCEQ). (2004-2024)Municipal Solid Waste in Texas:A Year in
Review(Annual Reports).
https://www.tceq.texas.gov/permitting/waste permits/waste planning/wp swasteplan.html
Baseline Overview 2-9
Section 2
permitted expansion or additional disposal area became available during that period. These trends
underscore the importance of ongoing monitoring of disposal volumes and available capacity to support
long-term solid waste planning.
250,000
225,000
200,000
175,000
150,000
125,000
100,000
75,000
50,000
25,000
0
0p 0c.? 0ca 0^ 0� 00 ^0 y1 �ti ti� yP yh N/ y 'Y �� ,y0 Y V ti^> tiR
0 r0 �0 �0 �p �p ,NiO �O �O �O �O �O ti0 ,)0 `1, �O' '1/ �O ti0 ,y0 ,V0
Figure 2-10 Port Arthur Landfill Reported Annual Tonnage
It is interesting to note that major hurricanes hit the area in late calendar years 2005(Rita),2008(Ike)and
2017 (Harvey); as shown in Figure 2-10,tonnage spikes were experienced in these respective fiscal years
(i.e., FY 2006, 2009, and 2018),which may have been related to storm debris collection.
During route observations, it was observed that the road to reach the tipping area at the landfill was in
need of grading, with wash-out impacts creating large divots, or "potholes," that could damage vehicles
and slow traffic into and out of the landfill. It was also observed that there may need to be an increase in
equipment operators to push loads onto the working face and spotters to direct traffic at the working face
of the landfill. Further, spotters may benefit from more training in directing vehicle traffic. For example,
in one instance the City's vehicle was directed to an area to unload that had just been used by a
construction contractor whose load had not yet been pushed into the working face, which caused the
City's collection vehicle to drive over construction materials.Staffing levels and training of staff should be
further evaluated and addressed.
While the City has a scale at the landfill,the City currently charges customers based on volume (in cubic
yards). All non-City customers pay the same$6.50 per cubic yard rate. While this offers some simplicity
and does not rely on a scale that will need routine maintenance and certification, it does not take into
consideration the inbound compaction of the waste being accepted at the landfill. This can result in some
inequity in how customers are charged. Most landfills the size of the City's utilize a scale and charge
customers by weight (in tons). Weighing all loads would also help the City evaluate the performance of
its disposal operations overtime,since it would allow the City to calculate the tons per volume of airspace
(airspace utilization). Given the high cost of building landfill cells, getting high levels of compaction (a
higher airspace utilization) provides the City the most return on that landfill cell investment.
2-10 Baseline Overview
Solid Waste System Overview
The City could also consider implementing separate rates for compacted and non-compacted loads, at
least as an interim step. This option could be further explored in future tasks.
2.5 Other Facilities/Infrastructure
The Public Works Department operates an equipment yard that supports the Solid Waste Division and
other City fleet operations (i.e., Operations Center). The facility serves as the staging, storage, and
maintenance location for collection vehicles and related equipment.The Operations Center was recently
renovated to improve functionality and better support personnel and daily operations.
•
H' r c a
Figure 2-11 Operations Center
Baseline Overview 2-11
I
This page left intentionally blank to facilitate double-sided printing.
SECTION 3
PRELIMINARY FINANCIAL ANALYSIS
As part of this study, the project team conducted a five-year cost of service analysis for the City of Port
Arthur's Solid Waste operations utilizing the City's adopted FY 2025 budget and the proposed FY 2026
budget. The Solid Waste budget is organized across multiple departmental areas, including
administration, residential garbage collection, residential bulk trash collection, commercial garbage
collection,and landfill operations.These budgeted costs form the basis for evaluating the overall financial
performance and long-term sustainability of the City's Solid Waste system.
This section presents the results of those evaluations,along with key findings related to cost recovery and
financial adequacy. Based on these findings, the project team developed conclusions and
recommendations regarding potential rate adjustments for the respective collection services, as well as
considerations for planning and funding future landfill-related costs.
3.1 Five-Year Forecast
Test Year
For purposes of this analysis, NewGen developed a Test Year budget to serve as the base year for the five-
year financial forecast.The Test Year is derived from the City's proposed FY 2026 Solid Waste budget and
reflects a normalized set of revenues and expenses that more accurately represent ongoing operations.
Each line item in the proposed FY 2026 budget was reviewed and evaluated, and while not all line items
required modification, select adjustments were made where necessary to better reflect expected
operating conditions and financial requirements. The City's proposed FY 2026 Solid Waste budget,
adjustments, and resulting Test Year are summarized in Table 3-1.
Table 3-1
City Proposed FY 2026 Budget&Test Year
Budget FY 2026 Budget Adjustments' Test Year
Administration $454,437 $37,143 $491,580
Residential Collection $1,711,049 $341,173 $2,052,222
Trash Collection $1,724,814 $937,785 $2,662,599
Commercial Collection $1,586,637 $(431,948) $1,154,689
Landfill $5,388,799 $29,098 $5,417,897
Non-Departmental $1,092,246 $0.00 $1,092,246
Debt Service $0.00 $1,131,589 $1,131,589
Total Expenses $11,957,982 $2,044,840 $14,002,822
Revenue Offsets $12,814,027 $(10,780,000)2 $2,034,027
Revenue Requirement $11,968,795
1. Key adjustments included adding debt service and including amounts for typical annualized vehicle
replacement for cash-purchased vehicles.
2. NewGen removed the revenue from rates,leaving a revenue offset that reduces expenses to calculate a
revenue requirement The revenue requirement is the amount of revenue the City needs to generate
from rates.
Baseline Overview 3-1
Section 3
As shown in Table 3-1, landfill operations account for nearly half of the City's proposed FY 2026 Solid
Waste expenses. While total revenues exceed expenses by approximately$856,000 under the proposed
FY 2026 budget,this surplus reflects the inclusion of revenues generated from Solid Waste user rates.To
isolate the amount of revenue that must be recovered through user rates, revenues associated with
collection services and landfill operations were removed from the Test Year. This approach allows the
analysis to identify the level of rate-generated revenue required to recover ongoing operational and
capital costs.
To better reflect ongoing operating and financial conditions, NewGen made adjustments to the FY 2026
budget to include the typical annualized expenses for cash-purchased vehicles across administration,
residential garbage collection, and bulk trash collection, as well as updates to debt service to reflect
existing and anticipated obligations.
Following these adjustments,total Test Year budgeted expenses were approximately$14.0 million.After
accounting for the revenue offsets, the resulting revenue requirement is $11.9 million, representing the
amount of rate-generated revenue the City must collect to fully recover Solid Waste system costs. The
Test Year served as the basis for projecting the five-year revenue requirement and cost of service analysis.
Inflation Factors
To project Solid Waste operating costs over the five-year forecast period,NewGen applied inflation factors
to individual Test Year budget line items. Inflation rates were assigned based on the nature of each cost
category to reasonably reflect expected changes in future operating expenses.Certain line items were not
inflated, including revenue offsets, which were held constant for forecasting purposes, and select costs
primarily related to debt service that are driven by fixed payment schedules rather than inflationary
trends.
The inflation rates used in the five-year forecast are summarized below:
• General Operating Costs: 2.5%
• Supplies: 2.5%
• Sa la ries:3.0%
• Benefits:4.0%
• Equipment Replacement:4.0%
• Equipment Maintenance:4.0%
• Fuel:4.0%
These inflation assumptions form the basis for projecting future Solid Waste operating costs and are used
consistently throughout the five-year financial forecast presented in the following sections.
Revenue Requirement Forecast
The revenue requirement forecast projects Solid Waste system expenses and revenues over a five-year
period, from FY 2027 (Year 1) through FY 2031 (Year 5). The forecast reflects the application of the
previously described inflation assumptions to the Test Year budget and serves as the basis for evaluating
projected cost recovery over the forecast period.The resulting five-year revenue requirement forecast is
summarized in Table 3-2.
3-2 Baseline Overview
Preliminary Financial Analysis
Table 3-2
Five-Year Revenue Requirement Forecast
Budget Year 1 Year 2 Year 3 Year 4 Year 5
FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Administration $512,902 $535,162 $558,404 $582,670 $608,007
Residential Collection $2,136,976 $2,225,369 $2,317,563 $2,413,725 $2,514,031
Trash Collection $2,776,618 $2,895,694 $3,020,058 $3,149,951 $3,285,624
Commercial Collection $1,204,926 $1,257,212 $1,311,952 $1,369,153 $1,428,928
Landfill $5,614,494 $5,818,675 $6,030,747 $6,251,031 $6,479,861
Non-Departmental $1,304,552 $1,328,541 $1,358,104 $1,388,135 $1,418,651
Debt Service $1,132,714 $1,128,714 $1,129,589 $1,130,214 $1,130,589
Total Expenses $14,683,081 $15,189,367 $15,726,416 $16,284,878 $16,865,691
Total Revenues Offsets $920,000 $920,000 $920,000 $920,000 $920,000
Revenue Requirement $13,763,081 $14,269,367 $14,806,416 $15,364,878 $15,945,691
As shown in Table 3-2,total Solid Waste system expenses increase steadily over the forecast period,from
approximately $14.6 million in Year 1 to $16.9 million in Year 5, representing an overall increase of
approximately 15%. Revenues unrelated to collection charges and landfill services were held constant
throughout the forecast period. While Test Year revenue offsets totaled approximately $2.0 million,
revenues were reduced to approximately $920,000 beginning in Year 1 to exclude one-time or non-
recurring miscellaneous income of approximately $1.1 million and are assumed to remain flat through
Year 5.
Based on projected expenses and revenue offsets,the Solid Waste revenue requirement is estimated at
approximately $13.7 million in Year 1 and increases to nearly $16.0 million by Year 5, representing an
increase of approximately 17% over the forecast period. This revenue requirement reflects the amount
that must be recovered through Solid Waste rates and charges,and serves as the basis for the rate analysis
and recommendations presented in the following section.
3.2 Cost of Service
Following the development of the revenue requirement forecast, the next step in the analysis was to
evaluate the cost of service associated with the City's Solid Waste operations.The cost of service analysis
examines the full cost of providing each major service component, including residential collection, trash
(bulky waste) collection, commercial collection, and landfill operations. This analysis allocates operating
and capital-related costs to each service based on how resources are used and provides the foundation
for assessing cost recovery and developing equitable rate recommendations.
Residential Garbage Collection
The City's residential garbage collection program provides service to approximately 16,000 households
and small businesses. Small businesses generating garbage consistent with curbside-residential service
are included in the residential collection program. The City currently charges a standard monthly
Baseline Overview 3-3
Section 3
residential fee of$20.50 per customer, with an additional $7.50 monthly charge for customers utilizing
extra garbage carts.All tire shredding costs are allocated to residential garbage collection and are included
in the total residential cost of service.
Approximately 22% of total administration costs are allocated to residential garbage collection, as
reflected in Table 3-3 below. Direct residential garbage collection costs are estimated at approximately
$2.6 million in Year 1 and are projected to increase to approximately $3.0 million by Year 5 due to
inflationary pressures.When administrative and tire shredding costs are included,the total cost of service
for residential garbage collection prior to disposal exceeds $3.0 million in Year 1 and is forecasted to
increase to just under$3.5 million by Year 5.
Table 3-3
Residential Garbage Collection Cost of Service
Service Category Year 1 Year 2 Year 3 Year 4 Year 5
FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Administration $270,348 $275,679 $283,359 $291,153 $299,069
Residential Garbage $2,611,227 $2,705,184 $2,803,179 $2,905,388 $3,012,000
Tire Shredding $130,896 $134,321 $137,839 $141,453 $145,165
Total Before Disposal $3,012,472 $3,115,185 $3,224,377 $3,337,994 $3,456,233
Residential Bulk Trash Collection
Residential bulk trash collection represents another component of the Solid Waste system's cost of
service.The City currently charges a monthly fee of$1.75 per customer for bulk trash collection services.
A portion of administrative costs is also allocated to bulk trash collection.
Direct bulk trash collection costs are estimated at approximately$2.9 million in Year 1 and are projected
to increase to just under$3.5 million by Year 5. When administrative costs are included,the total cost of
service for bulk trash collection prior to disposal is approximately$3.2 million in Year 1 and is forecasted
to increase to approximately$3.7 million by Year 5. Despite a much lower rate than residential garbage
collection, bulk trash collection service is more expensive for the City to provide.
Table 3-4
Residential Bulk Trash Collection Cost of Service
Service Category Year 1 Year 2 Year 3 Year 4 Year 5
FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Administration $289,577 $296,735 $306,477 $316,409 $326,540
Trash Collection $2,937,166 $3,056,387 $3,180,962 $3,311,138 $3,447,170
Total Before Disposal $3,226,743 $3,353,122 $3,487,439 $3,627,547 $3,773,710
3-4 Baseline Overview
I
Preliminary Financial Analysis
Commercial Garbage Collection
The City's commercial collection program provides service to approximately 922 commercial dumpsters,
with an average of 2,352 collections per week, or roughly 122,300 collections annually. For purposes of
this analysis,commercial customer growth was assumed to remain constant at 0%over the five-year study
period. Commercial collection rates vary by container size and service frequency,which is summarized in
Table 3-5.
Table 3-5
Commercial Garbage Collection Rates
Frequency of Collection
Container Size 1x 2x 3x 4x 5x 6x Extra Extra
(Cubic Yards) Pick Up Container
4 111.75 192.46 273.16 353.87 434.58 515.28 60.00 100.00
8 149.00 248.34 347.67 447.01 546.35 645.69 95.00 100.00
Direct commercial garbage collection costs are estimated at approximately$1.72 million in Year 1 and are
projected to increase to approximately$1.96 million by Year 5 as a result of inflationary pressures.When
administrative costs are included, total commercial collection costs prior to disposal are estimated at
approximately $1.89 million in Year 1 and are forecasted to increase to approximately $2.15 million by
Year 5. Overall, commercial collection remains less costly than both residential garbage and bulk trash
collection services.
Table 3-6
Commercial Garbage Collection Cost of Service
Service Category Year 1 Year 2 Year 3 Year 4 Year 5
FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Administration $169,426 $172,434 $176,919 $181,481 $186,126
Commercial Garbage $1,718,479 $1,776,079 $1,836,264 $1,899,152 $1,964,868
Total Before Disposal $1,887,905 $1,948,513 $2,013,183 $2,080,633 $2,150,994
Disposal (Landfill)
The City operates the City of Port Arthur Landfill, and disposal costs reflect the expenses required to
manage, operate,and maintain landfill operations for all waste streams generated within the City's Solid
Waste system. The City charges a disposal rate of $6.50 per cubic yard for both compacted and non-
com pacted waste.
Annual landfill volumes10 total approximately 165,000 cubic yards of City residential garbage and bulk
trash, approximately 50,000 cubic yards of City commercial waste, and an additional 341,000 cubic yards
10 The annual volumes discussed in this section are the inbound volumes as estimated at the entrance based on the
size of the collection vehicle or trailer. This is different from annual airspace consumed in the landfill,which is
measured by aerial survey.
Baseline Overview 3-5
Section 3
of waste not directly attributable to the City's residential or commercial collection services. Total landfill
costs are estimated at approximately$5.6 million in Year 1 and are projected to increase to approximately
$6.5 million by Year 5 due to inflationary pressures and other costs (e.g., cell construction). Table 3-7
summarizes the allocation of landfill disposal costs to residential garbage collection, residential bulk trash
collection, commercial collection, and other non-City waste streams based on relative disposal volumes.
Table 3-7
Disposal (Landfill)Cost of Service
Service Category Year 1 Year 2 Year 3 Year 4 Year 5
FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
City Residential Garbage $762,158 $796,992 $833,943 $872,515 $912,784
City Residential Bulk Trash $914,061 $955,837 $1,000,152 $1,046,413 $1,094,707
City Commercial Garbage $508,719 $526,702 $545,665 $565,251 $585,484
Non-City $3,451,023 $3,573,017 $3,701,657 $3,834,525 $3,971,778
Total $5,635,961 $5,852,547 $6,081,417 $6,318,704 $6,564,753
3.3 Rate Planning
This section evaluates strategies for the Solid Waste utility to recover the costs associated with providing
collection and disposal services in a financially sustainable manner. Building on the cost of service analysis
presented in the preceding sections, NewGen compared the full cost of service for each component of
the Solid Waste system with the rates currently charged to customers to assess overall financial
performance and cost recovery. Based on this evaluation, NewGen identified that existing rates are
insufficient to fully recover projected costs and, therefore, recommends targeted rate adjustments to
improve long-term financial sustainability. In addition,this section discusses the use of debt financing as
a tool to fund future landfill-related capital needs and to help moderate near-term financial impacts.
Current Revenue
Based on the cost of service analysis and a comparison with the rates currently charged for each Solid
Waste service,the utility is not expected to fully recover its costs.An overall under-recovery is anticipated
in the current year, and this gap is projected to increase over time, resulting in worsening financial
performance over the next five fiscal years if no changes are made.
While residential and commercial garbage collection services are generally expected to recover their
respective costs, bulk trash collection is projected to experience significant under-recovery throughout
the forecast period. This under-recovery is driven by relatively high service costs combined with a low
monthly rate charged to customers. In addition, landfill operations are also expected to under-recover
costs over the next five fiscal years, further contributing to the utility's overall revenue shortfall. Table
3-8 shows the forecasted financial performance of the utility over the next five fiscal years if no rate
changes or operational improvements are made.
3-6 Baseline Overview
Preliminary Financial Analysis
Table 3-8
Over/(Under) Recovery with Current Rates
Year 1 Year 2 Year 3 Year 4 Year 5
FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
Revenue Requirement $13,763,081 $14,269,367 $14,806,416 $15,364,878 $15,945,691
Total Rate Revenue $10,546,322 $10,608,152 $10,670,600 $10,733,673 $10,797,376
Over/(Under)Recovery $(3,216,759) $(3,661,215) $(4,135,816) $(4,631,205) $(5,148,314)
Cumulative Over/(Under)Recovery $(3,216,759) $(6,877,975) $(11,013,791) $(15,644,996) $(20,793,310)
While Table 3-8 shows the total under-recovery for the solid waste utility, Figure 3-1 shows how the utility
is performing for each of the primary customer classes. As Figure 3-1 shows, the City is over-recovering
for residential garbage collection and commercial garbage collection. However, the City is under-
recovering for third-party landfill customers (i.e., non-City customers) and significantly under-recovering
for bulky trash collection, where the costs of providing that service are significantly more than the$1.75
per household per month the City currently charges for that service. In addition to rate increases at the
landfill, the City could consider separate rates for compacted and uncompacted loads or transition to
weight-based rates.
Over/(Under) Recovery by Customer Class
■Residential Garbage a Bulky Trash ■Commercial Garbage a Third-Party Landfill Customers
$2,000,000
$1,000,000
III II . I1111
FY 2027 FY 2028 FY 2029 FY,2030 031
$(1,000,000)
$(2,000,000)
$(3,000,000)
$(4,000,000) _m.
$(5,000,000)
Figure 3-1 Over/(Under)Recovery by Customer Class
Baseline Overview 3-7
Section 3
Reserves
Due to the projected year-over-year under-recovery of revenues relative to expenses, the Solid Waste
utility's reserves are expected to decline significantly over the forecast period. Continued operating
deficits place ongoing pressure on available fund balances and limit the utility's ability to absorb
unexpected costs or operational disruptions.
In addition to under-recovering operational costs, several planned cash-funded expenditures further
exacerbate reserve depletion.These include a planned landfill capital project estimated at approximately
$4.0 million that is currently assumed to be funded on a pay-as-you-go basis.As a result of these combined
factors, the utility's reserves, estimated at approximately $3.6 million at the beginning of FY 2026, are
projected to decline substantially over the forecast period, reaching an estimated negative balance of
approximately$23.0 million absent corrective action.
Rate Adjustment Recommendations
Based on the financial analysis, cost of service evaluation, and revenue projections presented in this
section, NewGen recommends that the City consider targeted rate adjustments to improve cost recovery
across the Solid Waste system. Rate increase scenarios and their associated impacts will be further
researched in a future task with the intention to better align revenues with the full cost of providing
residential garbage, residential bulk trash,commercial garbage collection, and landfill services.
In addition, NewGen recommends that the City evaluate the use of debt financing for planned landfill
capital projects, including the approximately $4.0 million landfill project currently assumed to be cash-
funded. Utilizing debt to finance a portion of these costs would help reduce near-term pressure on
reserves, moderate short-term rate impacts, and improve overall financial stability.
3-8 Baseline Overview
SECTION 4
KEY FINDINGS AND PRELIMINARY NEEDS, GAPS, AND
OPPORTUNITIES ASSESSMENT
This Section presents key findings and preliminary assessments and considerations to be further explored,
based on historical and current data reviewed and analyzed to date. The next step of the master planning
effort will begin with a more thorough needs assessment and identification of potential strategies for
changes to the current system.
4.1 Population
The City's population was 57,755 in 2000,declined to 53,818 in 2010,and increased to 56,039
in 2020. The most recent U.S. Census Bureau estimate places the 2024 population at
approximately 55,799 residents, indicating relative stability with only minor change since
2020.
• For projecting population,a modest increase of 1%over the next ten years is estimated,which
would mean approximately 0.1% per year growth in population.
• Over the ten-year planning period, population is estimated to grow from 55,911 in 2026 to
56,472 in 2036.
4.2 Education and Outreach
:• The City educates residents on solid waste management issues through online tools that
include frequently asked questions and responses, general instruction relating to waste
collection, as well as interactive maps that allow users to find their collection schedule
information.
• Recent developments,such as the groundbreaking of the City's first recycling center,suggest
emerging opportunities for expanded public education and outreach on recycling and waste
reduction.
4.3 Generation
• Using 2024 population of 55,799 and FY2024 tons of waste of 169,529, an average of 3.04
tons per capita is estimated.
• Over the ten-year planning period, tonnage is estimated to grow from 169,868 in 2026 to
171,575 in 2036.
Using the composition information included in a recent EPA report, the largest constituents
estimated in the waste stream are shown to be paper and cardboard (23%),food (22%),yard
trimmings (12%), and plastic(12%).
4.4 Collection
:• Details regarding City-provided collection services and preliminary recommendations are
provided in the separate Collection Assessment Report.
Baseline Overview 4-1
Section 4
4.5 Disposal
• TCEQ annual reporting data indicates that, at current disposal rates, there is an estimated
remaining site life of approximately 73 years.
Historical reporting also demonstrates variability in annual disposal volumes, with higher
tonnage years such as 2009(234,430 tons)and 2021(188,724 tons),and lower tonnage years
such as 2005 (89,948 tons).
Remaining capacity values increased significantly between 2005 and 2006, suggesting that a
permitted expansion or additional disposal area became available during that period.
During route observations, it was observed that the road to reach the tipping area at the
landfill was in need of grading, with wash-out impacts creating large divots, or "potholes,"
that could damage vehicles and slow traffic into and out of the landfill.
It was also observed that there may need to be an increase in equipment operators to push
loads onto the working face and spotters to direct traffic at the working face of the landfill.
• Spotters may benefit from more training in directing vehicle traffic.Staffing levels and training
of staff should be further evaluated and addressed.
:• While the City has a scale at the landfill,the City currently charges customers based on volume
(in cubic yards). All non-City customers pay the same $6.50 per cubic yard rate. While this
offers some simplicity and does not rely on a scale that will need routine maintenance and
certification, it does not take into consideration the inbound compaction of the waste being
accepted at the landfill. This can result in some inequity in how customers are charged.
• Most landfills the size of the City's utilize a scale and charge customers by weight (in tons).
Weighing all loads would also help the City evaluate the performance of its disposal
operations over time,since it would allow the City to calculate the tons per volume of airspace
(airspace utilization).
• Given the high cost of building landfill cells, getting high levels of compaction (a higher
airspace utilization) provides the City the most return on that landfill cell investment.
• The City could also consider implementing separate rates for compacted and non-compacted
loads, at least as an interim step. This option could be further explored in future tasks.
4.6 Other Facilities/Infrastructure
• The Public Works Department operates an equipment yard that supports the Solid Waste
Division and other City fleet operations.
:• The facility serves as the staging, storage, and maintenance location for collection vehicles
and related equipment.
= The yard was recently renovated to improve functionality and better support daily operations.
4.7 Preliminary Financial Analysis
The City currently charges a standard monthly residential fee of$20.50 per customer,with an
additional$7.50 monthly charge for customers utilizing extra garbage carts.All tire shredding
4-2 Baseline Overview
Key Findings and Preliminary Needs, Gaps, and
Opportunities Assessment
costs are allocated to residential garbage collection and are included in the total residential
cost of service.
:• Direct residential garbage collection costs are estimated at approximately$2.6 million in Year
1 and are projected to increase to approximately $3.0 million by Year 5 due to inflationary
pressures.When administrative and tire shredding costs are included,the total cost of service
for residential garbage collection prior to disposal exceeds $3.0 million in Year 1 and is
forecasted to increase to just under$3.5 million by Year 5.
• Residential bulk trash collection represents another component of the Solid Waste system's
cost of service.The City currently charges a monthly fee of$1.75 per customer for bulk trash
collection services.
:• Direct bulk trash collection costs are estimated at approximately $2.9 million in Year 1 and
are projected to increase to just under$3.5 million by Year 5. When administrative costs are
included, the total cost of service for bulk trash collection prior to disposal is approximately
$3.2 million in Year 1 and is forecasted to increase to approximately $3.7 million by Year 5.
Despite a much lower rate than residential garbage collection, bulk trash collection service is
more expensive for the City to provide.
• Direct commercial garbage collection costs are estimated at approximately $1.72 million in
Year 1 and are projected to increase to approximately $1.96 million by Year 5 as a result of
inflationary pressures. When administrative costs are included, total commercial collection
costs prior to disposal are estimated at approximately $1.89 million in Year 1 and are
forecasted to increase to approximately $2.15 million by Year 5. Overall, commercial
collection remains less costly than both residential garbage and bulk trash collection services.
Total landfill costs are estimated at approximately$5.6 million in Year 1 and are projected to
increase to approximately$6.5 million by Year 5 due to inflationary pressures and other costs
(e.g., cell construction).
• Based on the cost of service analysis and a comparison with the rates currently charged for
each Solid Waste service,the utility is not expected to fully recover its costs.An overall under-
recovery is anticipated in the current year, and this gap is projected to increase over time,
resulting in worsening financial performance over the next five fiscal years if no changes are
made.
While residential and commercial garbage collection services are generally expected to
recover their respective costs, bulk trash collection is projected to experience significant
under-recovery throughout the forecast period. This under-recovery is driven by relatively
high service costs combined with a low monthly rate charged to customers.
Landfill operations are also expected to under-recover costs over the next five fiscal years,
further contributing to the utility's overall revenue shortfall.
• The City is over-recovering for residential garbage collection and commercial garbage
collection, but under-recovering for third-party landfill customers (i.e., non-City customers)
and significantly under-recovering for bulky trash collection.
In addition to rate increases at the landfill, the City could consider separate rates for
compacted and uncompacted loads or transition to weight-based rates.
Baseline Overview 4-3
Section 4
Due to the projected year-over-year under-recovery of revenues relative to expenses, the
Solid Waste utility's reserves are expected to decline significantly over the forecast period.
Continued operating deficits place ongoing pressure on available fund balances and limit the
utility's ability to absorb unexpected costs or operational disruptions. In addition to under-
recovering operational costs, several planned cash-funded expenditures further exacerbate
reserve depletion. As a result of these combined factors, the utility's reserves, estimated at
approximately$3.6 million at the beginning of FY 2026,are projected to decline substantially
over the forecast period, reaching an estimated negative balance of approximately $23.0
million absent corrective action.
:• Based on the financial analysis,cost of service evaluation,and revenue projections presented
in this section, the City should consider targeted rate adjustments to improve cost recovery
across the Solid Waste system.
•:• The City should evaluate the use of debt financing for planned landfill capital projects,
including the approximately$4.0 million landfill project currently assumed to be cash-funded.
Utilizing debt to finance a portion of these costs would help reduce near-term pressure on
reserves, moderate short-term rate impacts, and improve overall financial stability.
4-4 Baseline Overview
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PORT ARTHUR
TEXAS
1 LI il .p
i #
..- -- _
e _
Allison Trulock,Managing Director-Solid Waste Practice
4 2875 S Orange Ave I Suite 500-1905 I Orlando,FL 32806 N ewGe n
Phone:(407)247-2370
Email:atrulock@newgenstrategies.net Strategies & Solutions
www.newgenstrategies.net
City of Port Arthur,Texas
Solid Waste Cost of Service
Over/(Under)Recovery-Current Rates
Line Year 1 Year 2 Year 3 Year 4 Year 5
No FY 2027 FY 2028 FY 2029 FY 2030 FY 2031
1 Residential Service
2 Net Revenue Requirement $ 3,774,630 $ 3,912,176 $ 4,058,320 $ 4,210,509 $ 4,369,017
3 Revenue
4 Standard Monthly Fee $ 3,936,000 $ 3,974,511 $ 4,013,408 $ 4,052,693 $ 4,092,371
5 Additional Carts $ 567,303 $ 572,700 $ 578,151 $ 583,656 $ 589,216
6 Residential Cart Revenue $ 4,503,303 $ 4,547,211 $ 4,591,558 $ 4,636,349 $ 4,681,588
7 Over/(Under)Recovery $ 728,673 $ 635,035 $ 533,239 $ 425,840 $ 312,570
8 Cumulative Over/(Under)Recovery $ 728,673 $ 1,363,708 $ 1,896,947 $ 2,322,787 $ 2,635,357
9 Trash Service
10 Net Revenue Requirement $ 4,140,804 $ 4,308,959 $ 4,487,592 $ 4,673,959 $ 4,868,417
11 Revenue $ 328,755 $ 332,043 $ 335,363 $ 338,717 $ 342,104
12 Over/(Under)Recovery $ (3,812,049) $ (3,976,916) $ (4,152,229) $ (4,335,243) $ (4,526,313)
13 Cumulative Over/(Under)Recovery $ (3,812,049) $ (7,788,965) $ (11,941,194) $ (16,276,437) $ (20,802,750)
14 Commercial Service
15 Net Revenue Requirement $ 2,396,624 $ 2,475,216 $ 2,558,848 $ 2,645,885 $ 2,736,478
16 Revenue
17 Dumpter Rate Customers $ 2,033,137 $ 2,033,137 $ 2,033,137 $ 2,033,137 $ 2,033,137
18 MR Unit Customers $ 1,463,443 $ 1,478,078 $ 1,492,859 $ 1,507,787 $ 1,522,865
19 Commercial Revenue $ 3,496,580 $ 3,511,215 $ 3,525,996 $ 3,540,924 $ 3,556,002
20 Over/(Under)Recovery $ 1,099,956 $ 1,035,999 $ 967,147 $ 895,040 $ 819,524
21 Cumulative Over/(Under)Recovery $ 1,099,956 $ 2,135,955 $ 3,103,103 $ 3,998,142 $ 4,817,666
22 Landfill Service(Third-Party)
23 Net Revenue Requirement $ 3,451,023 $ 3,573,017 $ 3,701,657 $ 3,834,525 $ 3,971,778
24 Revenue $ 2,217,683 $ 2,217,683 $ 2,217,683 $ 2,217,683 $ 2,217,683
25 Over/(Under)Recovery $ (1,233,340) $ (1,355,334) $ (1,483,974) $ (1,616,842) $ (1,754,095)
26 Cumulative Over/(Under)Recovery $ (1,233,340) $ (2,588,673) $ (4,072,647) $ (5,689,489) $ (7,443,584)
27 Total
28 Total Revenue Requirement $ 13,763,081 $ 14,269,367 $ 14,806,416 $ 15,364,878 $ 15,945,691
29 Total Revenue $ 10,546,322 $ 10,608,152 $ 10,670,600 $ 10,733,673 $ 10,797,376
30 Over/(Under)Recovery $ (3,216,759) $ (3,661,215) $ (4,135,816) $ (4,631,205) $ (5,148,314)
31 Cumulative Over/(Under)Recovery $ (3,216,759) $ (6,877,975) $ (11,013,791) $ (15,644,996) $ (20,793,310)
Prepared by NewGen Strategies and Solutions,LLC Page 1 of 1 8/17/2026