2024-25 Solid Waste Rate Study
June 17, 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
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– Tipping fee credits no longer in effect in FY 25/26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.
– Bringing Street Sweeping Services in-house.
6 Financial Plan Key Issues
7 • Increasing cost of providing solid waste service
– Waste hauler cost increases (seeking contract amendment) – Increasing disposal cost
– Prevailing wage costs for contracted services
– State mandates for organics, recycling, and zero emissions for new vehicles and equipment
– Operations and program efforts
• Two community recycling day events, hazardous waste disposal, Oleander cleanup, and the maintenance of more than 17,000 trees – Continuing 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 5-Year Financial Plan
8 $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
9 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 low-income senior rate discount
– Currently is $10.00.
– Proposed increase to $25.00 in FY 29/30
10 Proposed Rates
11 *Presentation shows a summary of Commercial rates. Services larger or more frequent than a 2 yard, 1x per week service increase proportionally to that service.
Recommended Rates Current 7/1/2025 7/1/2026 7/1/2027 7/1/2028 7/1/2029 Size Weekly
Frequency
Current Proposed Proposed Proposed Proposed Proposed
Residential Three Toter Service Monthly Rate ($ 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%
Garbage Rates Comparison with
Surrounding Agencies
12 $25.31
$36.07 $37.06 $37.70
$41.35 $41.83 $43.02 $43.98 $46.59
$54.93 $57.36
$-
$10
$20
$30
$40
$50
$60
$70
Riverbank Hughson Ceres Waterford Turlock Patterson
(Current)
Lathrop Patterson
(Proposed)
Los Banos Modesto Stockton
Monthly Residential Collection Rate
90/96 Gallon Service
13 Questions and Comments?