Solid Waste Disposal Bond - City of Jacksonville, FL in Florida

Brief Summary

Jacksonville sizes this bond to your franchise fees, not to a flat number. Haulers who grow and keep filing last year's bond amount come up short, and the city's own auditors found that happening in close to half the files they tested. Get the amount right at renewal and the bond is a routine annual filing.

A company holding a City of Jacksonville franchise to collect nonresidential solid waste must submit a payment bond every year. According to the City Council Auditor, the bond must equal the greater of $25,000 or the estimated franchise fee for one month of operations. Franchisees remit 17 percent of gross receipts from nonresidential solid waste to the city each month, and renewal applications are due 90 days before the franchise anniversary date.

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How to Apply for a Solid Waste Disposal Bond:

• Estimate one month of franchise fees at 17 percent of nonresidential solid waste gross receipts.
• Set the bond at the greater of $25,000 or that one month estimate.
• Confirm the current bond form and filing office with the City of Jacksonville.
• Provide company name, ownership and financial information to the surety.
• Pay the premium and receive the executed bond.
• Submit the bond with the annual franchise application, at least 90 days before the franchise anniversary date.

Detailed Information About the Florida Solid Waste Disposal Bond:

The amount is a formula, not a flat figure

Jacksonville's nonresidential solid waste franchise is governed by Chapter 380 of the Ordinance Code. The City Council Auditor's Report 793 on nonresidential solid waste franchise fees describes the bond this way: every year each franchisee must submit a payment bond in an amount equal to the greater of $25,000 or the estimated franchise fee for one month's operations.

Because the franchise fee is 17 percent of the gross receipts collected for nonresidential solid waste, a hauler whose monthly fee would exceed $25,000 needs a larger bond. The auditors found the bond amount fell short of the requirement in 8 of 18 cases they tested, and two files had no bond documentation at all. Recalculate the amount from current receipts at every renewal.

Who posts it

A company must apply to the city and hold a franchise to provide nonresidential solid waste services in Jacksonville. The bond is part of the annual franchise filing, alongside an insurance certificate, a certified copy of the policy, and gross receipts statements audited by an independent CPA licensed in Florida.

Deadlines that matter

Franchisees reapply once a year, with renewal applications due 90 days before the franchise anniversary date. Audited gross receipts reports are due within 90 days after the close of the franchisee's fiscal year. Late franchise fee payments carry 18 percent annual interest.

Before the bond is issued

The auditor's report dates from 2017. Confirm the current bond form, amount calculation and filing office with the City of Jacksonville before the bond is issued. The surety prices the premium from the company's credit and financial strength, so larger bonds may call for business financial statements.

Eligibility and Requirements for a Florida Solid Waste Disposal Bond:

• City of Jacksonville nonresidential solid waste franchise.
• Payment bond equal to the greater of $25,000 or one month of estimated franchise fees.
• Annual insurance certificate and certified copy of the policy.
• Gross receipts statements audited by an independent CPA licensed in Florida.
• Monthly remittance of 17 percent of nonresidential solid waste gross receipts.

Florida Solid Waste Disposal Bond FAQs:

Official and Additional Resources for the Florida Solid Waste Disposal Bond: