Should Portland adopt solid waste and recycling rates and fees for franchised residential collection and the commercial tonnage fee, effective July 1, 2026 (amend…

As noted in the Ordinance findings, Portland uses a franchise system to govern and deliver waste collection services. Our system requires annual rate review and requires that rates be set at a level that covers overall cost of service, target operating margin, and the franchise fee. The franchise system incentivizes our collection service providers (haulers) to deliver service in a cost-effective and efficient way because each hauler is not guaranteed a specific profit.The proposed rates for residential curbside collection result from the annual rate review required by the franchise with residential haulers. Costs incurred by the haulers during 2025 have been independently reviewed by a certified public accounting agency and adjustments made to reflect any changes.Cost Drivers in the 2026 Rate ReviewBelow are the factors driving changes in the monthly rate, using the 35-gallon cart as the example, with other cart sizes higher or lower where costs are proportional.Increasing CostsWaste disposal (set by Metro) - Our proposed rates allow an increase in this year's disposal fees of 3.23%.To avoid an emergency ordinance, the review process was altered this year to project disposal fee costs based on a reasonable inflator tied to the Consumer and Producer Price Indices. Metro has shifted to adopting disposal fees at a later point in the year. Delaying the review for that timeline would have required an emergency ordinance as was the case in 2025. So, a reasonable economic-based inflator was used--and vetted with franchised haulers.Metro has proposed to increase disposal fees by 10% and organics fees by 10%. If adopted, disposal fees will have increased 92% since 2020, almost four times the background economic level of inflation of 25%. If adopted at this level, then any increase over the projected inflator used in our rates would be caught up to in the next year's review. In comparison, costs of collection since 2020 have only slightly exceeded background levels of inflation.Residential Organics: Yard debris and food waste (set by Metro) - Similar to disposal costs, this cost has jumped significantly in recent years. Our proposed rates allow an increase in this year's organics fees of 7%, based on both a reasonable inflator and Metro's fee policy making this the final year in a transition to eliminate a subsidy of the organics disposal fees. Metro has proposed to increase organics fees by 10%. If adopted at this level, then any increase over the inflator used in our rates would be caught up to in the next year's review.Weights - waste in carts is up 4.3%.Expected Inflation – Forecast inflation in wages and benefits and fuel adds $1.57 per month relative to CY 2025 costs.Rollcart depreciation, interest and maintenance is up by $0.10 per month.Decreasing CostsCumulatively the following trends help to offset the cost increases described above.Recycling processing – Due to the investments by packaging producers into Oregon's Recycling System, recycling processing costs fell from $1.34 to $0.79 per customer per month.Glass incentive – the proposed rates assume a continued incentive from packaging producers of $79/ton of recycled glass which keeps monthly costs $0.26 lower than would be the case without the glass incentive.Weights - 4.7% less material is in compost carts in 2025 compared to 2024 and the use of yard debris extras increased, helping to offset the increase in organics fees set by Metro

The reviewed sources do not clearly identify every existing policy, service, contract, or obligation that would remain unchanged.

This proposal concerns land use & permitting and requires action through Portland’s public legislative process.

The residential curbside collection rates were developed in accordance with the methodology laid out in the franchise agreement that governs residential garbage, recycling, and yard debris/food scrap collection, which requires the City Council to adopt rates that cover the costs of service, the operating margin, and pass-through expenses (such as the franchise fee). Adjusting residential rates to meet costs identified in the rate review process will increase monthly fees, roughly 3% for most customers, for residential garbage, recycling, and composting service. This rate increase will result in the recommended monthly rate for the most common service level, the 35-gallon cart, increasing $1.25 from $43.80 to $45.05 per month. In considering the community impacts of this rate-setting process, BPS staff note the following: Garbage and recycling haulers provide a critical community service with a record of success. When costs increase, the City franchise agreement requires the City to address these cost increases via adjusted rates. If it fails to do so, the haulers will have to absorb the increased cost without compensation. The service has a track record of being very cost effective and performing well, with rate increases typically below the rate of inflation. Garbage and recycling service is not required because a property owner can self-haul their garbage and recycling, except that City code directs landlords to ensure service is provided to tenants, and all property owners must comply with Portland City Code Title 29 (Property Maintenance Regulations) and other health and safety laws and regulations. The community benefits from climate and sustainability programs and public trash collection programs funded by the franchise fee. Much of the waste-related programming funded through franchise fees is required under the Opportunity to Recycle Act.This is a fee for service system; customers pay effectively what it costs to provide the service, to oversee it, and to deliver solid waste and sustainability related programs directed and/or required by either state, regional, or City policy. On April 13, 2026, BPS staff conducted a public hearing to solicit feedback from the community. Since the hearing BPS has received input from three community members requesting that highly uncommon types of service be added to the City rate sheet. These service levels have been considered in the past but were not found to be feasible.