Dive Brief:
- After a unanimous City Council vote, Gresham, OR residents and businesses will see an increase in trash and recycling disposal costs on Sept. 1. The typical residential customer will see a 5% increase in their rate, while most business customers will see a 7% rate increase.
- Five waste haulers serve the city of Gresham: Waste Management of Oregon, Hoodview Disposal and Recycling, Arrow Sanitary Service, Gresham Sanitary Service, and Rockwood Solid Waste. Together, they provide service to 4,300 business customers, 23,000 residential customers, and 5,000 drop boxes.
- The change in disposal rates is projected to increase revenue among the haulers by $882,000 a year. This money will cover the haulers' previous dip in revenue due to high hauling fees, equipment costs, and selling recyclable material.
Dive Insight:
Aside from increasing waste disposal fees, there are little-to-no options for industry leaders to keep their heads above water during economic challenges. In order to keep residents happy while cutting hauling and truck costs, some U.S. cities, such as Castiloga, CA, have stopped requiring trash service altogether. Although this method saves residents money, it causes them to dispose of trash in an illegal or inappropriate manner.
Gresham officials last increased garbage and recycling rates in 2013. This time around, they used a new formula based on the value of recyclables and the waste hauler's profit margin. With commodities prices driving down the bulk prices of recyclables across the industry, the city had to keep those factors in mind when deciding upon a new disposal rate.
