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Posted on: July 12, 2022

Solid Waste Rate Increase

Solid Waste Rate Increase

At the July 5th City Council Meeting, the council approved a rate increase request made by Waste Management. The request is to compensate for the cost increases Waste Management has experienced in fuel, workers’ wages, cost of equipment, and garbage disposal over the past 12 months. The current solid waste contract states Waste Management can request base increases per the Consumer Price Index (CPI), US Average for All Urban Consumers, Garbage and Trash Collection. The not seasonally adjusted increase, according to the CPI, was 5.44% from May 2021 to May 2022. Based on this Waste Management requested a 4.34% increase. In addition, the contract allows Waste Management to request an increase of 1% when the per gallon rate of diesel reaches $3.00, this is based on the U.S. Department of Energy Weekly Retail rates on Highway Diesel prices for the Gulf Coast. It also permits an additional 1% increase for each 25-cent increase over $3. Diesel reached $3 in May of 2021 but, Waste Management did not request an increase at that time. Since then, the price has risen to $5.37 and has stayed around that price in the most recent data. Based on this amount, and according to the contract, Waste Management can request an increase of 10% in addition to the 4.34% CPI increase. Waste Management has acknowledged that contractually they can request an increase up to 15.44%. However, due to the potential hardship to residents and based on the valuable partnership between the City and Waste Management, they are only requesting an overall total increase of 10% which would make the fuel surcharge 4.56%.

The fuel surcharge is reviewed annually and lowered based on the price at that time. Based on the surcharge requested, the increase would be reduced if the price per gallon drops below $3.75 at this time next year.

Customers will still receive the same level of service; weekly trash cart & bulk/brush pick up, every other week recycle cart pick up, and household hazardous waste disposal through Waste Management’s “At your door” Special Hazardous Waste Collection Program.

What does this mean for you as a customer? 

Customers will see the following changes beginning July 15, 2022.

Current Rate vs New Rate

Current RateNew RateRate Increase
Residential Services$19.90$21.89$1.99
Extra Cart$6.20$6.76$0.56/cart
Commercial Services$21.89$24.08$3.18

All pricing has been updated on the solid waste page.

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