Garbage bills could jump in SLO this year. Here’s why and how much
Garbage rates could be going up in San Luis Obispo, after a proposed increase for garbage, recycling, green and food waste costs was sent out to city customers earlier this month.
Notices were sent out to customers of the San Luis Obispo Garbage Company on March 5, alerting them to a possible 17.75% increase on their garbage bills.
The notice gave those impacted a chance to protest the increase ahead of a public hearing in April.
The city contracts with the San Luis Obispo Garbage Company, which submits an application to adjust its base rates every three years.
The company said the latest increase is to comply with a new law to reduce greenhouse gas emissions at landfills, help pay increased costs for its anaerobic digester and to cover wage adjustments to attract and retain employees, among other costs.
If approved, an additional temporary 8.88% increase would make up for fees that weren’t collected between Jan. 1 and May 1.
That amount would be charged through the end of the year, meaning the actual increase on customers’ bills would be about 26.63%, starting May 1.
The company and city could decide to increase rates again at the start of 2023 or 2024 if adjustments are needed.
The San Luis Obispo City Council will hold a public hearing on the proposed rate increase April 19 at 6 p.m. at City Hall.
Why increase San Luis Obispo garbage rates now?
The garbage company’s application cited a number of reasons for the needed rate increase, mainly related to rising costs associated with:
- compliance of a new state law to reduce greenhouse gas emissions at landfills, Senate Bill 1383
- increased capital equipment investments and “escalating operating expenses” related to the anaerobic digester
- wage adjustments to attract and retain employees
- insurance costs
- fee costs from state waste diversion programs
- operational expenses that include a Consumer Price Index (CPI) increase of 5.3 percent.
San Luis Obispo officials said the city won’t be the only jurisdiction impacted by garbage rate increases, which will affect most, if not all, communities in the county and state.
How much would my bill go up?
If the rate increase goes into effect, customers will see changes on their monthly bills starting May 1.
For the smallest-size waste container, a 19-gallon waste wheeler, the bill would increase from $11.14 to $14.11.
The typical customer uses a 32-gallon waste wheeler, according to Jordan Lane, the city’s solid waste and recycling coordinator. That currently costs $17.78, and would go up to $22.51 under the current proposal.
Those using the largest residential receptacle, a 96-gallon waste wheeler, would see a monthly increase from $53.35 to $67.56 this year.
Lane said a customer assistance program is under development, which would offer a 15% rate discount to those who qualify financially, similar to a water and sewer program for lower-income residents.
“We’re working to get the (customer assistance) program in place by the end of summer,” Lane said.
Some residents protest rate increase: ‘Times are tough’
Owners or tenants of a property receiving services from San Luis Garbage may submit a written protest against the proposed rate increase to the city clerk before the close of the public hearing April 19, according to the city’s website.
“A valid written protest must contain a statement that you protest the increase,” the city’s website notes.
If more than 50% of owners or tenant-customers protest the rate increase, then it can’t be implemented under Proposition 218. Even if it does not receive the required number of protests, the city could still choose to not adopt the increase.
At least some residents are not happy about the proposed hike, according to comments submitted to the city ahead of the rate increase hearing.
“Times are tough all around, if you add gigantic gas price increases and the highest inflation in years,” resident Carol Allison said. “Sorry, I’m not sure how this can be justified.”’
Another anonymous resident wrote to the City Council that a smaller hike is more justifiable, but not the large amount proposed.
“As residents we don’t have the choice of taking our business elsewhere if we don’t like the cost,” the resident noted.
This story was originally published March 24, 2022 at 5:00 AM.
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