Staff Report
City Council
Item No. 2.B
Meeting Date: May 13, 2026
From: John A. Corella, Director of Public Works
Title: Annual Rate Increase Request for Solid Waste and Recycling Collection for Residential, Commercial and Roll-Off Services
RECOMMENDATION:
The annual rate increase request for solid waste and recycling collection for residential, commercial and roll-off services is presented to the City Council for discussion, comments and direction in preparation of a rate increase public hearing and City Council approval at the June 10, 2026, City Council meeting
BACKGROUND:
In April 2026, Burrtec Waste and Recycling LLC. (Burrtec) requested an annual rate increase for residential, commercial, and roll-off services, in accordance with Article 6 of the Municipal Franchise Agreement (FA). Pursuant to the FA, Burrtec is eligible to request a rate increase each year based on applicable increases in the US Bureau of Labor Statistics Consumer Price Index (CPI) for Water, Sewer, and Trash Collection Services. The change in the CPI from January 2025 to January 2026 was 4.73%.
The Riverside County disposal fee at the Edom Hill Transfer Station will also increase from $67.33 to $70.36 per ton, effective July 1, 2026, in accordance with The Edom Hill Master Lease Agreement between Riverside County and Burrtec.
Burrtec is requesting a rate increase incorporating the following elements:
The CPI increase in accordance with the Franchise Agreement. The County of Riverside’s increase in cost per ton of disposal at County landfills. The annual net recycling adjustment is based on several components associated with recycling, such as processing, transportation, and recycling commodity prices.
DISCUSSION:
The following narrative identifies how the commercial, residential and roll-off customers would be impacted.
Residential Customer:
The current residential rate for calendar year, January – December 2026, is $32.43 a month for the weekly curbside service of one (1) each 96-gallon trash, recycle and organic containers.
If approved, the residential tax roll rate for calendar year, January – December 2027, will increase $2.01 per month or $24.12 annually. The monthly rate will increase from $32.43 to $34.44 for calendar year 2027. The rate increase will be effective for the assessment on the 2026/2027 tax rolls.
Commercial Customers:
Commercial service rates vary based on container size and service frequency. A three (3) cubic yard container serviced once per week represents the most common service level among Cathedral City commercial customers.
If approved, the monthly rate for this service level will increase by $10.39 effective July 1, 2026.
The proposed rate adjustments reflect increases in CPI, landfill disposal costs, and recycling market conditions, all of which are contractually allowable under the franchise agreement and necessary to maintain current service levels.
Summary of programs offered by the city and/or Burrtec for city’s residential, multifamily and commercial customers:
Included Services (No Additional Cost):
Curbside Collection:
Weekly collection of one (1) 96-gallon trash, recycling and organics carts. Additional recycling and organics cart.
SB 1383 residential compliance programs (kitchen pails, liners, education).
Bulky Large Item Collection Program:
Up to four (4) items per week (residential, commercial and multifamily).
Special Waste Programs:
Motor oil and oil filter recycling.
Electronic waste, batteries and tire collection.
Household hazardous waste (HHW) disposal.
Sharps and medication disposal.
Community Programs:
Monthly document shredding events.
Environmental education (S.C.R.A.P. Gallery, schools, community programs). Multi-family recycling support (containers, audits, signage) Outreach & Support:
Citywide mailers and targeted outreach.
Free waste, recycling, and support services for City-sponsored events. Holiday tree recycling.
Illegal dumping collection.
Special services for disabled residents.
Other Programs:
Backyard composting.
Community cleanup programs.
WaterSmart Landscapes Rebate Program.
The annual rate increase request for solid waste and recycling collection services is presented to the City Council for discussion and direction in preparation for a public hearing and potential approval at the June 10, 2026, City Council meeting. In accordance with Proposition 218 requirements, a public hearing will be scheduled, and all required noticing procedures will be completed prior to Council consideration of the proposed rate adjustments.
FISCAL IMPACT:
There is no impact to the AB 939 Fund (246) or General Fund (100) expenditures.
Since solid waste services are funded through the Franchise Agreement between Burrtec and the City of Cathedral City, the proposed rate increase does provide a revenue sharing increase for revenues in both the AB 939 Fund (246) and the General Fund (100).
FIVE-YEAR STRATEGIC PLAN:
Goal C: Fiscal Stability and Sustainability
Goal F: Embracing, Inclusive Community
ATTACHMENTS:
1. Cathedral City Burrtec Rate Increase Request
2. Prop 218 Notice 2026