News Summary
San Diego is experiencing significant financial deficits due to outdated trash hauling fees that have not been adjusted for inflation. An audit revealed a potential annual loss of $15 million if changes are not made. Recycling rates for city crews are substantially lower than those of private haulers, and the city’s recycling targets remain unmet. A proposal has been made to enhance recycling collection frequency and increase franchise fees for better financial alignment. Full implementation of recommended changes is not anticipated until 2028.
San Diego is facing an annual loss of at least $4 million, with potential losses reaching $15 million, due to outdated trash hauling fees imposed on private companies. An audit has highlighted that these fees have not been adjusted in line with inflation or the wear and tear that trash trucks cause to city streets, leading to significant financial deficits for the city.
The audit found that San Diego’s recycling rate has stagnated at approximately 67% over the past decade. If the city does not improve its recycling efforts, the Miramar Landfill could close sooner than the anticipated date of 2031. Currently, there are 15 private waste hauling companies servicing businesses, apartment complexes, and condominiums in San Diego, while the city handles waste collection for single-family homes.
Recycling rates for the city’s collection crews are considerably lower than those for private haulers, standing at around 32%. The audit revealed that as much as 80% of the waste being collected by city crews could have potentially been recycled. In response, a proposal has been put forward to increase the frequency of recycling collections for single-family homes from every other week to weekly by the year 2027.
The audit put forward eight recommendations, including increasing franchise fees for private haulers to better align with inflation and actual expenses incurred by the city. City officials are planning to implement these recommendations; however, they noted that financing will be necessary for further studies and the hiring of five new employees. As a result, full implementation of these changes is not expected until July 2028.
During the fiscal year ending in June, San Diego earned $14 million from trash hauler fees, falling short of the potential $18 million it could have accrued if the fees had been adjusted alongside inflation since 2010. Over the same period, the city has only increased its fees twice, with total raises of 13%. In comparison, inflation has risen by 54%, indicating a significant lag in fee adjustments.
Currently, the city charges fees ranging from $17 per ton for high-volume haulers to $18 for low-volume haulers. These rates are lower than those in other California cities, such as San Jose at $49 per ton and Chula Vista at $41 per ton. Oceanside and Carlsbad’s fees are $15 and $17 per ton, respectively.
The audit further suggests that raising the fees may not significantly impact customer rates due to the competitive nature of the trash hauling market in San Diego. Estimated adjustments to the fees would result in an additional cost to households of either $1.74 or $2.98 per month, depending on how the fees are structured.
In 2018, the city considered transitioning to an exclusive trash hauler model but rejected the idea to maintain competitive pricing within the market. While San Diego’s recycling rates are higher compared to some other large cities in California, they are still below the city’s climate goals. San Diego aims to achieve recycling rates of 75% by 2020, 82% by 2030, and 100% by 2040.
Republic Services, EDCO, and Waste Management dominate the local market, controlling about 90% of hauler contracts in San Diego. The continued inaction and inefficiencies in trash hauling fees are poised to impact the city’s ability to meet its environmental objectives and financial needs in the coming years.
Deeper Dive: News & Info About This Topic
HERE Resources
San Diego Proposes New Trash Pickup Fee for Homeowners
San Diego Faces $258 Million Budget Shortfall
Prepare for Property Tax Deadline in San Diego
UC San Diego Faces $500 Million Budget Cuts Amid Protests
San Diego Updates Trash Fees – What You Need to Know
Additional Resources
- San Diego Union Tribune: Trash Hauler Deals
- 10 News: Organic Waste Recycling Progress
- NBC San Diego: Christmas Tree Recycling
- Google Search: San Diego recycling challenges
- Fox 5 San Diego: Presidents Day Closures
- Encyclopedia Britannica: Recycling
