Staff Report
City Council
Item No. 4.A
Meeting Date: June 10, 2026
From: John A. Corella, Director of Public Works
Title: 2026/2027 Rate Increase Request for Solid Waste and Recycling Collection for Residential, Commercial and Roll-Off Services.
RECOMMENDATION:
Hold a public hearing in accordance with Proposition 218, consider all written and oral protests received, determine whether a majority protest exists, and if no majority protest is received, approve the proposed 2026/2027 rate increase for solid waste, recycling, and disposal services for residential, commercial, and roll-off customers; and adopt a resolution approving tax roll billing for residential services.
BACKGROUND:
In April 2026, Burrtec Waste and Recycling, LLC (Burrtec) submitted a request for the annual rate adjustment for residential, commercial, and roll-off services in accordance with Article 6 of the Municipal Franchise Agreement (FA).
Under the terms of the FA, Burrtec is eligible to request an annual rate adjustment based on changes in the Consumer Price Index (CPI) for Water, Sewer, and Trash Collection Services, as published by the U.S. Bureau of Labor Statistics. The CPI increased 4.73% from January 2025 to January 2026.
Additionally, 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.
The requested rate adjustment reflects the following:
CPI increase in accordance with the Franchise Agreement. Increase in Riverside County landfill disposal costs.
Annual net recycling adjustment based on processing, transportation, and commodity market conditions.
On April 24, 2026, the City mailed written notice to all record owners of properties receiving solid waste collection services, notifying them of the public hearing scheduled for June 10, 2026. The notice was provided in compliance with Proposition 218 and Government Code Section 53755 and informed property owners of their right to submit written protests. The notice is included as Exhibit 4.
DISCUSSION:
Public Hearing
In accordance with Proposition 218 and Government Code Section 53755, the City Council will open the public hearing, receive oral and written protests, and close the hearing. The City Clerk will tabulate all valid protests, with one protest counted per parcel.
If fewer than 50% of property owners submit valid protests, no majority protest exists, and the City Council may proceed with consideration and approval of the proposed rates.
Franchise Fee Review
A component of the solid waste collection services is a franchise fee charged by the City to recover its cost of administering the franchise agreement. In 2025, the City engaged R3 Consulting to perform a financial analysis of the franchise fee. The analysis confirmed the fee is necessary and does not exceed the reasonable cost of providing the service. As part of this year’s rate adjustment, no changes to the franchise fee structure are proposed.
Proposed Rate Increase
The following narrative identifies how commercial and residential customers would be affected by the proposed rate increase.
Residential Customer:
The current residential rate for calendar year 2026 is $32.43 per month for the weekly curbside service, which includes one (1) 96-gallon container each for trash, recycling and organics.
If approved, the residential rate for calendar year 2027 will increase by $2.01 per month, or $24.12 annually, resulting in a new monthly rate of $34.44. The rate increase will be applied through the FY 2026/2027 Riverside County property tax roll.
Commercial Customer:
Commercial service rates vary depending on container size and service frequency. A three (3) cubic-yard container serviced once per week represents the most common service level.
If approved, the monthly rate for this service will increase by $10.39, effective July 1, 2026.
Commercial customers are directly billed by Burrtec.
Summary of Programs
Included Services (No Additional Cost):
Curbside Collection:
• Weekly collection of one (1) 96-gallon trash, recycling, and organics carts • Additional recycling and organics carts
• 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) • Multifamily 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
Staff presented the above information at the City Council Study Session on May 13, 2026.
COLLECTION VIA THE TAX ROLL:
California Health and Safety Code Sections 5473 et.’seg, and the Cathedral City Municipal Code Section 6.04.030 authorizes the city to adopt a resolution by two-thirds of the members of the City Council to collect solid waste rates on the tax roll, in the same manner and at the same time as the general taxes. In accordance with Health and Safety Code Section 5473, the City has prepared a written report containing a description of each parcel of real property receiving such services, and the amount of the charge for each parcel for the 2026-2027 tax year. This report is on file with the City Clerk and is attached to the proposed resolution as Exhibit B. By approving the proposed resolution, City Council will be authorizing the city to collect solid waste rates on the tax roll in the same manner and at the same time as the general taxes.
FISCAL IMPACT:
There is no direct impact on General Fund (100) or AB 939 (246) expenditures.
The proposed rate adjustment will result in a proportional increase in franchise fee revenues to both funds in accordance with the Franchise Agreement.
FIVE-YEAR STRATEGIC PLAN:
Goal C: Fiscal Stability and Sustainability
Goal F: Embracing an Inclusive Community
ATTACHMENTS:
1. Resolution
2. Exhibit A Proposed Rates 2026-2027
3. Exhibit B Residential Tax Roll 2026-2027
4. Notice of Public Hearing