2024-25 Solid Waste Rate Study
April 15, 2025
Background
• Solid waste enterprise provides comprehensive
collection and disposal service to over 7,200 customers – Three bin, weekly residential service – High recycling participation, low contamination
– Low-income/Senior discount ($10/month) – Bulky item pickup service 2x per year – Weekly street sweeping – Annual Leaf Pickup Program
• Solid waste enterprise is self-supporting, and rates are the main source of revenues
• Rates need to be set at levels adequate to fund the cost of providing service
• In 2019, the City implemented a 5-year, phased-in rate increase
– Final increase was on July 1, 2023
2 Current Rates
Size Weekly
Frequency
Current
Residential Three Toter Service Monthly Rate ($ per Service) Residential 1 X $41.83
Extra green waste toter 1 X $6.81
Commercial Trash Service Monthly Rate ($ per Service)
(1) 96 gal toter 1 X $41.87
2 yd bin 1 X $145.46
Commercial Recycling Service Monthly Rate ($ per Service) (1) 96 gal toter 1 X $20.95
2 yd bin 1 X $72.74
Commercial Organics Service Monthly Rate ($ per Service) (1) 96 gal toter 1 X $13.94
6 yd bin 1 X $436.27
Current Rates
3 *Presentation shows a summary of Commercial rates. Services larger or more frequent than a 2 yard, 1x per week service increase proportionally to that service.
Study Objectives
• Financially Sound
– Fund all costs while maintaining
prudent reserves
• Legally Compliant – Prop. 218
4 Prop. 218 states that a customer’s rates
“must not generate revenues in excess of the
cost of service for which the fee is charged.”
Cal. Const., art. XIII D, § 6, subd. (b).
Proposition 218
• Voter-approved constitutional amendment 1996
– Added Articles 13C & 13D to the California Constitution • Substantive requirements for property-related
charges – Rates cannot exceed cost of providing service – Proportionate cost recovery (fair and equitable)
• Procedural requirements for rate increases – Mail notice of rate increases to all property owners/customers – Hold public hearing at least 45 days after the mailing – Rates are subject to “majority protest”
5 Assumptions
• Bertolotti Requests: – 88 cent residential rate increase and higher commercial recycling service fees due to the increase in the cost to process recycling and state organics mandates
• Cost Increases for Service: – Tipping fee credits no longer in effect in FY 25/26 – SB 1383 Mandate, State of California requirements for City program
– Recycling is now a cost not a revenue
• Cost Reduction Efforts: – Postponing hiring of staff, purchasing of equipment, and lowering costs of improvements. – Delaying Street Sweeping Services due to timing of electrical sweepers and staffing to Year 3. – Delaying Sewer Fund reimbursement for Compost/Mulch Blower in the amount of $500,000 to Year 2. 6
Financial Plan Key Issues
• Increasing cost of providing solid waste service – Waste hauler cost increases • Contract amendment – Increasing disposal cost – Prevailing costs for contracted out services – State mandates for organics and recycling • Green waste diversion program
• New equipment, additional staff – Operations and Program Efforts • Two Community Recycling Day Events
• Hazardous Waste Disposal • Oleander Cleanup
• Maintenance of more than 17,000 trees, Tree Capital – State mandate for EV, zero emissions for new vehicles and equipment – Inflation • Ten new staff positions – Projected cost of new staff by FY 29/30 ~$232,000 • Equipment and capital improvements – Projected ~$955,000 through FY 29/30 • Maintain prudent reserves – Target 3 months O&M + $250,000 for capital improvements 7 Street Sweeping Levels of Service
• Developed three financial plans and rate scenarios based on street sweeping levels of service
• Current level of service is: – Weekly Residential – Daily Commercial/Downtown (M-F) – Daily by Schools (M-F) – Weekly Parking Lot Areas – Special Events – Unscheduled Service – Emergency Service
• Reduced level of service is: – Monthly Residential – Two Times Per Month Commercial/Downtown (M-F) – Monthly by Schools (M-F) – Monthly Parking Lot Areas – Special Events – Unscheduled Service 8 – Emergency Service
Financial Plan Scenarios
• Financial Plan and Rate Scenarios: – Scenario 1: maintain current level of service and use contractor
• Initial annual cost $950,000
– Scenario 2: maintain current level of service and inhouse • Hire additional staff and lease street sweeping equipment • Initial annual cost $475,000
– Scenario 3: reduced level of service to maintain
approximate existing budget and use contractor
• Initial annual cost $275,000
• All scenarios meet the reserve target by FY 31/32
• Commercial service rates are phased-in in all
scenarios.
9 Cost Breakdown (5-Year Average)
10 42.1%
3.7%
42.4%
11.8%
Scenario 1
45.3%
4.0%
45.6%
5.1%
Scenario 3
44.3%
3.9%
44.6%
7.2%
Scenario 2
Rate Revenue Scenarios
• BWA developed financial projections to identify future funding needs & evaluate rate increases
• Proposed rate increases phased in over 5 years
11 *Initial bill impacts will vary based on customer class and usage due to rate structure adjustments to realign the rates with cost of service July 1,
2025
July 1,
2026
July 1,
2027
July 1,
2028
July 1,
2029
Rate Revenue Increase (%): 12.00%* 10.00% 9.00% 9.00% 7.50% Total Rate Revenue ($ mil): 5.23 5.90 6.58 7.34 8.07 Rate Revenue Increase (%): 8.65%* 8.50% 8.10% 8.00% 5.00% Total Rate Revenue ($ mil): 5.08 5.64 6.25 6.90 7.41 Rate Revenue Increase (%): 8.00%* 8.00% 7.00% 6.50% 5.50% Total Rate Revenue ($ mil): 5.05 5.58 6.12 6.67 7.19
S1
S2
S3
5-Year Financial Plan - Scenario 2
12 $0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 Bertolotti Expenses
Capital and Equipment
O&M Expenses
Revenue
Reserves
Reserve Target
Solid Waste Cashflow ($ millions)
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
FY 24/25 FY 25/26 FY 26/27 FY 27/28 FY 28/29 FY 29/30 FY 30/31 FY 31/32 FY 32/33 FY 33/34 FY 34/35 Bertolotti Expenses Capital and Equipment
O&M Expenses Revenue
Reserves Reserve Target
Solid Waste Cashflow ($ millions)
10-Year Financial Plan - Scenario 2
13 Prop. 218 Period
Rate Recommendations
• Rates updated to reflect the proportional cost
of service
• Phase-in rate increases for commercial
customers with large impacts over five years
• Increase Senior/low-income rate discount – Currently is $10.00. – Proposed increase to $25.00 in FY 29/30 14 Scenario Comparison: Residential
15 Current 7/1/2025 7/1/2026 7/1/2027 7/1/2028 7/1/2029 Size Weekly
Frequency
Current Proposed Proposed Proposed Proposed Proposed
Scenario 1: Current Level of Service Contracted
Residential 1 X $41.83 $45.34 $49.87 $54.36 $59.25 $63.69 $ Increase $3.51 $4.53 $4.49 $4.89 $4.44
% Increase 8.4% 10.0% 9.0% 9.0% 7.5%
Low Income/Senior 1 X $31.83 $33.20 $34.57 $35.95 $37.32 $38.69 Increase % 4.3% 4.1% 4.0% 3.8% 3.7%
Scenario 2: Current Level of Service In-House
Residential 1 X $41.83 $43.98 $47.72 $51.59 $55.72 $58.51 $ Increase $2.15 $3.74 $3.87 $4.13 $2.79
% Increase 5.1% 8.5% 8.1% 8.0% 5.0%
Low Income/Senior 1 X $31.83 $32.17 $32.50 $32.84 $33.17 $33.51 $ Increase $0.34 $0.34 $0.34 $0.34 $0.34
% Increase 1.1% 1.0% 1.0% 1.0% 1.0%
Scenario 3: Reduced Level of Service Contracted
Residential 1 X $41.83 $43.72 $47.22 $50.53 $53.81 $56.77 $ Increase $1.89 $3.50 $3.31 $3.28 $2.96
% Increase 4.5% 8.0% 7.0% 6.5% 5.5%
Low Income/Senior 1 X $31.83 $31.82 $31.81 $31.79 $31.78 $31.77 $ Increase -$0.01 -$0.01 -$0.01 -$0.01 -$0.01
% Increase 0.0% 0.0% 0.0% 0.0% 0.0%
Scenario Comparison -
Residential Rates
Scenario Comparison: (1) 96 gal, 1x
16 Current 7/1/2025 7/1/2026 7/1/2027 7/1/2028 7/1/2029 Size Weekly
Frequency
Current Proposed Proposed Proposed Proposed Proposed
Scenario 1: Current Level of Service Contracted
(1) 96 gal toter (Trash) 1 X $41.87 $54.68 $67.49 $80.31 $93.12 $105.93 % Increase 30.6% 23.4% 19.0% 16.0% 13.8%
(1) 96 gal toter (Recycling) 1 X $20.95 $37.95 $54.94 $71.94 $88.93 $105.93 % Increase 81.1% 44.8% 30.9% 23.6% 19.1%
(1) 96 gal toter (Organics) 1 X $13.94 $32.34 $50.74 $69.13 $87.53 $105.93 % Increase 132.0% 56.9% 36.3% 26.6% 21.0%
Scenario 2: Current Level of Service In-House
(1) 96 gal toter (Trash) 1 X $41.87 $52.95 $64.03 $75.12 $86.20 $97.28 % Increase 26.5% 20.9% 17.3% 14.8% 12.9%
(1) 96 gal toter (Recycling) 1 X $20.95 $36.22 $51.48 $66.75 $82.01 $97.28 % Increase 72.9% 42.2% 29.7% 22.9% 18.6%
(1) 96 gal toter (Organics) 1 X $13.94 $30.61 $47.28 $63.94 $80.61 $97.28 % Increase 119.6% 54.5% 35.3% 26.1% 20.7%
Scenario 3: Reduced Level of Service Contracted
(1) 96 gal toter (Trash) 1 X $41.87 $52.38 $62.89 $73.39 $83.90 $94.41 % Increase 25.1% 20.1% 16.7% 14.3% 12.5%
(1) 96 gal toter (Recycling) 1 X $20.95 $35.64 $50.33 $65.03 $79.72 $94.41 % Increase 70.1% 41.2% 29.2% 22.6% 18.4%
(1) 96 gal toter (Organics) 1 X $13.94 $30.03 $46.13 $62.22 $78.32 $94.41 % Increase 115.5% 53.6% 34.9% 25.9% 20.6%
Scenario Comparison -
(1) 96 gal 1X Rates
Scenario Comparison: 2 yd bin, 1x
17 Current 7/1/2025 7/1/2026 7/1/2027 7/1/2028 7/1/2029 Size Weekly
Frequency
Current Proposed Proposed Proposed Proposed Proposed
Scenario 1: Current Level of Service Contracted
2 yd bin (Trash) 1 X $145.46 $150.80 $165.88 $180.81 $197.08 $211.86 % Increase 3.7% 10.0% 9.0% 9.0% 7.5%
2 yd bin (Recycling) 1 X $72.74 $100.56 $128.39 $156.21 $184.04 $211.86 % Increase 38.3% 27.7% 21.7% 17.8% 15.1%
2 yd bin (Organics) 1 X $145.46 $150.80 $165.88 $180.81 $197.08 $211.86 % Increase 3.7% 10.0% 9.0% 9.0% 7.5%
Scenario 2: Current Level of Service In-House
2 yd bin (Trash) 1 X $145.46 $146.29 $158.72 $171.58 $185.31 $194.58 % Increase 0.6% 8.5% 8.1% 8.0% 5.0%
2 yd bin (Recycling) 1 X $72.74 $97.11 $121.48 $145.84 $170.21 $194.58 % Increase 33.5% 25.1% 20.1% 16.7% 14.3%
2 yd bin (Organics) 1 X $145.46 $146.29 $158.72 $171.58 $185.31 $194.58 % Increase 0.6% 8.5% 8.1% 8.0% 5.0%
Scenario 3: Reduced Level of Service Contracted
2 yd bin (Trash) 1 X $145.46 $145.41 $157.04 $168.03 $178.95 $188.79 % Increase 0.0% 8.0% 7.0% 6.5% 5.5%
2 yd bin (Recycling) 1 X $72.74 $95.95 $119.16 $142.37 $165.58 $188.79 % Increase 31.9% 24.2% 19.5% 16.3% 14.0%
2 yd bin (Organics) 1 X $145.46 $145.41 $157.04 $168.03 $178.95 $188.79 % Increase 0.0% 8.0% 7.0% 6.5% 5.5%
Scenario Comparison -
2 yd bin 1X Rates
Garbage Rates Comparison with
Surrounding Agencies
18 $25.31
$36.07 $37.06 $37.70
$41.35 $41.83 $43.02 $43.72 $43.98 $45.34 $46.59
$54.93 $57.36
$-
$10
$20
$30
$40
$50
$60
$70
Riverbank Hughson Ceres Waterford Turlock Patterson
(Current)
Lathrop Patterson
(Proposed,
S3)
Patterson
(Proposed,
S2)
Patterson
(Proposed,
S1)
Los Banos Modesto Stockton
Monthly Residential Collection Rate
90/96 Gallon Service
Next Steps
19 • Consider initiating Prop 218 April 15th proceedings. • 218 notices mailed. 45-day period
begins (April 21st to June 17th April 21st ).
• Public hearing, tabulation of
protests, consider adoption of new
rates.
June 17th
• New rates become effective. July 1st
,
2025
20 Questions and Comments?
Proposed Rates Scenario 1
21 *Presentation shows a summary of Commercial rates. Services larger or more frequent than a 2 yard, 1x per week service increase proportionally to that service.
Recommended Rates - Scenario 1 Current 7/1/2025 7/1/2026 7/1/2027 7/1/2028 7/1/2029 Size Weekly
Frequency
Current Proposed Proposed Proposed Proposed Proposed
Residential Three Toter Service Monthly Rate ($ per Service) Residential 1 X $41.83 $45.34 $49.87 $54.36 $59.25 $63.69 $ Increase $3.51 $4.53 $4.49 $4.89 $4.44
% Increase 8.4% 10.0% 9.0% 9.0% 7.5%
Low Income/Senior 1 X $31.83 $33.20 $34.57 $35.95 $37.32 $38.69 $ Increase $1.37 $1.37 $1.37 $1.37 $1.37
% Increase 4.3% 4.1% 4.0% 3.8% 3.7%
Extra green waste toter 1 X $6.81 $11.31 $15.81 $20.31 $24.81 $29.31 $ Increase $4.50 $4.50 $4.50 $4.50 $4.50
% Increase 66.1% 39.8% 28.5% 22.2% 18.1%
Commercial Trash Service Monthly Rate ($ per Service)
(1) 96 gal toter 1 X $41.87 $54.68 $67.49 $80.31 $93.12 $105.93 % Increase 30.6% 23.4% 19.0% 16.0% 13.8%
2 yd bin 1 X $145.46 $150.80 $165.88 $180.81 $197.08 $211.86 % Increase 3.7% 10.0% 9.0% 9.0% 7.5%
Commercial Recycling Service Monthly Rate ($ per Service) (1) 96 gal toter 1 X $20.95 $37.95 $54.94 $71.94 $88.93 $105.93 % Increase 81.1% 44.8% 30.9% 23.6% 19.1%
2 yd bin 1 X $72.74 $100.56 $128.39 $156.21 $184.04 $211.86 % Increase 38.3% 27.7% 21.7% 17.8% 15.1%
Commercial Organics Service Monthly Rate ($ per Service) (1) 96 gal toter 1 X $13.94 $32.34 $50.74 $69.13 $87.53 $105.93 % Increase 132.0% 56.9% 36.3% 26.6% 21.0%
2 yd bin 1 X $145.46 $150.80 $165.88 $180.81 $197.08 $211.86 % Increase 3.7% 10.0% 9.0% 9.0% 7.5%
Proposed Rates Scenario 2
22 *Presentation shows a summary of Commercial rates. Services larger or more frequent than a 2 yard, 1x per week service increase proportionally to that service.
Recommended Rates - Scenario 2 Current 7/1/2025 7/1/2026 7/1/2027 7/1/2028 7/1/2029 Size Weekly
Frequency
Current Proposed Proposed Proposed Proposed Proposed
Residential Three Toter Service Monthly Rate ($ per Service) Residential 1 X $41.83 $43.98 $47.72 $51.59 $55.72 $58.51 $ Increase $2.15 $3.74 $3.87 $4.13 $2.79
% Increase 5.1% 8.5% 8.1% 8.0% 5.0%
Low Income/Senior 1 X $31.83 $32.17 $32.50 $32.84 $33.17 $33.51 $ Increase $0.34 $0.34 $0.34 $0.34 $0.34
% Increase 1.1% 1.0% 1.0% 1.0% 1.0%
Extra green waste toter 1 X $6.81 $10.80 $14.79 $18.78 $22.77 $26.76 $ Increase $3.99 $3.99 $3.99 $3.99 $3.99
% Increase 58.6% 36.9% 27.0% 21.2% 17.5%
Commercial Trash Service Monthly Rate ($ per Service)
(1) 96 gal toter 1 X $41.87 $52.95 $64.03 $75.12 $86.20 $97.28 % Increase 26.5% 20.9% 17.3% 14.8% 12.9%
2 yd bin 1 X $145.46 $146.29 $158.72 $171.58 $185.31 $194.58 % Increase 0.6% 8.5% 8.1% 8.0% 5.0%
Commercial Recycling Service Monthly Rate ($ per Service) (1) 96 gal toter 1 X $20.95 $36.22 $51.48 $66.75 $82.01 $97.28 % Increase 72.9% 42.2% 29.7% 22.9% 18.6%
2 yd bin 1 X $72.74 $97.11 $121.48 $145.84 $170.21 $194.58 % Increase 33.5% 25.1% 20.1% 16.7% 14.3%
Commercial Organics Service Monthly Rate ($ per Service) (1) 96 gal toter 1 X $13.94 $30.61 $47.28 $63.94 $80.61 $97.28 % Increase 119.6% 54.5% 35.3% 26.1% 20.7%
2 yd bin 1 X $145.46 $146.29 $158.72 $171.58 $185.31 $194.58 % Increase 0.6% 8.5% 8.1% 8.0% 5.0%
Proposed Rates Scenario 3
23 *Presentation shows a summary of Commercial rates. Services larger or more frequent than a 2 yard, 1x per week service increase proportionally to that service.
Recommended Rates - Scenario 3 Current 7/1/2025 7/1/2026 7/1/2027 7/1/2028 7/1/2029 Size Weekly
Frequency
Current Proposed Proposed Proposed Proposed Proposed
Residential Three Toter Service Monthly Rate ($ per Service) Residential 1 X $41.83 $43.72 $47.22 $50.53 $53.81 $56.77 $ Increase $1.89 $3.50 $3.31 $3.28 $2.96
% Increase 4.5% 8.0% 7.0% 6.5% 5.5%
Low Income/Senior 1 X $31.83 $31.82 $31.81 $31.79 $31.78 $31.77 $ Increase -$0.01 -$0.01 -$0.01 -$0.01 -$0.01
% Increase 0.0% 0.0% 0.0% 0.0% 0.0%
Extra green waste toter 1 X $6.81 $10.59 $14.36 $18.14 $21.91 $25.69 $ Increase $3.78 $3.78 $3.78 $3.78 $3.78
% Increase 55.4% 35.7% 26.3% 20.8% 17.2%
Commercial Trash Service Monthly Rate ($ per Service)
(1) 96 gal toter 1 X $41.87 $52.38 $62.89 $73.39 $83.90 $94.41 % Increase 25.1% 20.1% 16.7% 14.3% 12.5%
2 yd bin 1 X $145.46 $145.41 $157.04 $168.03 $178.95 $188.79 % Increase 0.0% 8.0% 7.0% 6.5% 5.5%
Commercial Recycling Service Monthly Rate ($ per Service) (1) 96 gal toter 1 X $20.95 $35.64 $50.33 $65.03 $79.72 $94.41 % Increase 70.1% 41.2% 29.2% 22.6% 18.4%
2 yd bin 1 X $72.74 $95.95 $119.16 $142.37 $165.58 $188.79 % Increase 31.9% 24.2% 19.5% 16.3% 14.0%
Commercial Organics Service Monthly Rate ($ per Service) (1) 96 gal toter 1 X $13.94 $30.03 $46.13 $62.22 $78.32 $94.41 % Increase 115.5% 53.6% 34.9% 25.9% 20.6%
2 yd bin 1 X $145.46 $145.41 $157.04 $168.03 $178.95 $188.79 % Increase 0.0% 8.0% 7.0% 6.5% 5.5%