Merced City Council approves ‘painful’ trash collection rates increase, lasting 5 years
Merced residents and businesses can soon expect a significant jump in their solid, organic and recycled waste collection bill.
The Merced City Council this week voted 5-1 to approve an ordinance that will raise trash collection costs over the next five years.
“This is not one of those things you relish doing,” said Merced Mayor Mike Murphy.
Councilmember Anthony Martinez cast the lone dissenting vote, and Councilmember Fernando Echevarria was absent from the meeting.
Under the ordinance, residential refuse rates will rise 20% during fiscal year 2020-21 and 5% each subsequent year until 2024-25.
Businesses can expect to pay even more. Commercial rates will go up 37% during fiscal year 2020-21 and 10% each following year until ending in 2024-25.
The rate increase will go into effect July 1.
Why is the increase happening?
The hikes address rising overall refuse collection expenses, which have gone up 29% since 2016, according to Project Manager Carrie Baxter of R3 Consulting Group, Inc.
A presentation to City Council by Baxter explained the justification for the increase.
Contributing to soaring expenses is new state legislation with stringent recycling and organics requirements.
Baxter explained another factor is China’s 2018 “National Sword” policy. According to the Center for EcoTechnology, the Chinese policy has banned the importation of certain types of solid waste, in addition to setting strict contamination limits on recyclable materials.
That means China will not accept shipments that are mixed with trash, the wrong type of recyclable, or low-quality recyclables like greasy paper goods, according to the center.
The policy has effectively cut imported recyclables.
Also contributing is rising residential development, which mandates increased collection, Baxter said.
Climbing refuse costs have resulted in a $2.2 million deficit, city officials say.
City officials say they aim to amend that deficit with the refuse rate increase, with the goal of reaching a 16% operational operational reserve — equal to two months operating expenses.
Councilmember Jill McLeod noted it has been years since refuse rates increased significantly. Now, they must catch up, she said.
“You are absolutely right that its painful to look at a 20% increase,” McLeod said.
Residential refuse collection in Merced is already slightly higher than other California cities, according to date presented by Baxter.
The statewide average rate for a 64 gallon cart is $33.51 a month. In Merced, it cost $37.08 in 2019.
Commercial rates, however, are 51% lower at only $91.32 for a 3 cubic yard bin compared to the statewide average of $187.31.
Who opposed the increase?
Not everyone is on board with the planned increase.
Twenty two letters of protest were received from the public contesting the item.
Councilmember Martinez, the lone opposition vote on the issue, said he would prefer that a greater financial burden be incurred upon commercial users.
He also echoed residents’ request that collection be customized for those who produce less trash or need service less often.
City Manager Steve Carrigan explained that since thousands of residents are served by the refuse program, individualized collection would be too difficult.
A second reading of the ordinance will take place at the next council meeting on March 16.
This story was originally published March 6, 2020 at 5:00 AM.
