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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Solid Waste Collection Rates Update and Authorization to Reduce Previously Adopted Solid Waste Rate Increases Scheduled for July 1, 2026, and July 1, 2027.
1. Resolution Reducing the Previously Adopted Solid Waste Collection Rate Increases of 10% Effective July 1, 2026, and 10% Effective July 1, 2027, Adopted Pursuant to Resolution No. 23-75, and Approving Revised Rate Increases of 4% Effective July 1, 2026, and 3% Effective July 1, 2027
COUNCIL ACTION
Item Type: Action Item
Approved for May 19, 2026 calendar
EXECUTIVE SUMMARY
On June 6, 2023, the City Council adopted a resolution setting residential solid waste collection rates for the following five years. At the time, the City Council requested annual updates on the implementation of the new approved rate structure.
MSW Consultants developed the original Cost of Services Analysis (COSA), which established the basis for the five-year refuse rate adjustment plan. MSW Consultants recently prepared their Mid-Year Review of the 2023 Solid Waste COSA (2026 Update), including analyzing all actual revenues and expenditures since the implementation of new rates. The 2026 Update has been used to re-project future revenue, expenditures and resulting cash balances for the fund.
Relative to the 2023 COSA, the 2026 Update shows higher than projected revenue and lower than anticipated expenditures, which have resulted in a more positive cash balance and upward trend. As a result, the 2026 Update recommends considering a reduction in the scheduled 10% rate increases in July 2026 and July 2027 to 4% and 3%, respectively.
RECOMMENDATION
Approve a resolution to reduce the previously adopted solid waste collection rate increases from 10% effective July 1, 2026, and 10% effective July 1, 2027, to rate increases of 4% effective July 1, 2026, and 3% effective July 1, 2027. 10d2
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ANALYSIS
Pursuant to Resolution No. 23-75, the City Council previously approved five-years of solid waste collection rate adjustments, with increased rates becoming effective on July 1, 2023, July 1, 2024, and July 1, 2025. The remaining increases are scheduled to be applied on July 1, 2026 and July 1, 2027, at an increased rate of 10% for each year.
The most recent MSW Consultants’ 2026 Update concluded that total revenue in the Refuse Disposal Fund from the past three years has exceeded COSA projections by approximately $2.0 million (3.6%). During the same period, total expenditure has been $7.2 million (9.9%) below projections. Due to these favorable variances, the projected fund shortfall between revenues and expenses has been adjusted from $16.6 million to $7.4 million. Thus, this reduced shortfall results in an anticipated ending cash balance of $7.6 million in the Refuse Fund, instead of $0.9 million as originally anticipated.
Two primary factors have contributed to these changes. First, the original COSA projected higher disposal/processing costs, as well as increased overhead costs due to the Scholl Canyon Landfill anticipated closing in December 2025. Since closure of the Scholl Canyon Landfill is now scheduled to be after 2030, those increased costs have not yet been realized and thus adjusted downwards. Second, the COSA originally included increased disposal costs resulting from greater expected participation in the city’s organics recycling program. However, the program’s adoption by residents has not materialized as rapidly, hence the actual costs have been lower than originally anticipated.
As a result of these variances, the fund is projected to have a $7.6 million ending cash balance at the conclusion of FY 2026, which is within the target minimum cash balance of 25% of the operation’s annual operating cost, currently calculated at $6.6 million. If the implementation of the originally scheduled 10% rate increases in July 2026 and July 2027 were to proceed, it would result in a fund balance of $29.9 million by the end of FY 2031, significantly in excess of the fund’s minimum requirements.
Based on these factors, staff recommends lowering the scheduled rate increases from 10% effective July 1, 2026 and 10% effective July 1, 2027 to 4% effective July 1, 2026 and 3% effective July 1, 2027. Doing so still provides adequate reserve for unforeseen costs, and maintains a stable and leveled cash balance through 2031. These adjustments are projected to maintain the Refuse Fund’s cash balance at approximately $15 million through FY 2031, as illustrated within Chart 4 in the 2026 Update (Exhibit 1).
STAKEHOLDERS/OUTREACH
In conjunction with the original COSA and rate adjustments from 2023, extensive notification was provided to all residential refuse customers as required by state law. No additional outreach was performed related to this report on Solid Waste Collection Rates Update.
FISCAL IMPACT
The fiscal impact of modifying the scheduled Refuse Disposal rates is described in the 10d3
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2026 Update exhibit attached to this report. The proposed adjustment of rates as outlined in this report is estimated to reduce revenues through FY 2030-31 by $14.9 million compared with continuing the scheduled adjustments. Reducing the scheduled rate increases will still increase revenues to the Refuse Disposal Fund, but by less than projected in the original 2023 COSA.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
The action requested herein is ministerial and thus not a project for the purposes of California Environmental Quality Act; therefore, CEQA does not apply.
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES TO STAFF RECOMMENDATION
1.Take no action, which will automatically result in the previously approved 10% rate increases effective July 1, 2026 and July 1, 2027.
ADMINISTRATIVE ACTION
Submitted by:
Daniel Hernandez, Director of Public Works
Prepared by:
Orlando Urquidez Jr., Senior Public Works Management Analyst Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
1. 2026 Update – Mid-year review of 2023 Solid Waste Cost of Service Study
2. Rate Adjustment Table(s) – Modified