Operationalizing solid waste finance in Memphis

The City of Memphis Solid Waste Division manages a massive operation serving over 200,000 service points for garbage, recycling, and outside trash. The City faces a unique combination of high service volume and a strong community mandate to combat urban blight through robust bulk waste collection. With fluctuating customer demands and evolving Council priorities, the Division recently faced depleted reserves in its special revenue fund. Without sophisticated financial intervention, the City risked being unable to fund critical fleet replacements and shop charges, which would lead to service delays, increased blight, and further erosion of the fund’s financial health.  

Raftelis has served as a strategic partner to Memphis for nearly 10 years. Our insight was that a one-time rate study is insufficient for a system as dynamic as Memphis’; instead, the City required an operationalized financial strategy. We moved beyond high-level planning to provide granular, monthly oversight. We recognized that the "hidden" costs—such as maintenance shop charges, vehicle/fleet lifecycle planning, and incremental routing adjustments—were the fundamental drivers of fiscal health. We facilitated difficult conversations between operational realities and Council priorities, ensuring that a sustainable funding plan backs every proposed service level increase.  

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Our collaboration has evolved into a comprehensive support system for the Division, focusing on:  

• Service delivery optimization: We conducted benchmarking and cost-of-service studies to help the City select the most effective models for "outside cart" (bulk waste) and recycling services.  

• Ongoing financial modeling: We provide monthly budget analysis and tracking, enabling the Division to respond quickly to shifting costs or revenues.  

• Fleet and shop charge analysis: Raftelis conducts deep-dive reviews of vehicle planning and shop charges, ensuring that the heavy equipment necessary for bulk collection is funded and maintained efficiently.  

• Blight mitigation strategy: We developed a new multi-year rate plan that accounts explicitly for increased service levels to address community blight while aggressively rebuilding the Division’s depleted reserves.  

• Fleet replacement and additional fleet prioritizations as well as support particularly in Area E, post-COVID.  

Over the past decade, we have helped Memphis transform its Solid Waste Division into a fiscally transparent and resilient utility. By integrating monthly budget tracking with long-term fleet and capital planning, the City has successfully navigated periods of financial strain and reserve depletion.  

The Division now has the financial architecture to address blight and meet customer demands proactively with confidence. With a clear roadmap for full cost recovery and a sustainable plan for future fiscal years, Memphis can ensure that its 200,000 service points remain well-served and that the City’s commitment to a cleaner, more vibrant community is financially secured for the long term. This partnership provides the Solid Waste Director and the City Council with the data-backed certainty needed to manage one of the largest and most complex solid waste systems in the region.