*Adopt solid waste and recycling rates and fees for franchised residential collection and the commercial tonnage fee, effective July 1, 2025 (amend ENN-2.09 and ENN-2.10)
The City of Portland ordains.
Section 1. The Council finds:
- In 1991, the Council granted residential solid waste, recycling, and yard debris collection franchises to introduce service and set standards and rates to encourage increased recovery of recyclable material from the waste stream (Ord. No. 164701).
- In 2024, the Council renewed the residential franchise system for a 12-year term with an opportunity to review after 5 years (Ord. No. 191534).
- Section 9 of the residential franchise agreement requires the Bureau of Planning and Sustainability (BPS) to conduct an annual rate review to determine the rate franchisees may charge their residential customers for collection services. The City must set the rate sufficient to recover allowed costs, operating margin and franchise fees.
- BPS staff reviewed system costs and management operations data reported by franchisees, during spring 2025.
- The review showed cost increases for disposal fees, inflation, and wages. To meet the rate review criteria set forth in the franchise agreement, residential solid waste rates must increase. An example of the monthly rate for the most common service level, a 35-gallon garbage roll cart collected every two weeks, would be an increase of $1.80 due to above-noted increased costs.
- In order to provide affordable and predictable collection of bulky waste from residential properties, the revised fee schedule establishes a coordinated city-wide fee schedule for the collection of bulky waste.
- Low-income residents may struggle with affording solid waste service as costs increase, so BPS is seeking to implement a low-income assistance program.
- Portland City Code (PCC) Section 17.102.190 provides that the residential solid waste rates and charges will be established via a rate ordinance adopted by Council.
- Under the terms of the City’s franchise agreement and this year‘s rate review, appropriate amendments to the residential rate schedule are set forth in Exhibit A.
- Under PCC Chapter 17.102, the City issues permits to commercial garbage and recycling collection companies. Commercial permittees are charged an assessment on each ton of garbage collected from commercial accounts. Funds generated by the fee are used to manage the commercial garbage and recycling program, including public trash collection.
- To improve community cleanliness, BPS continues to expand its Public Trash Can program and has increased contributions to the Impact Reduction program.
- The costs of managing the garbage and recycling program are rising as the City aims to expand public trash collection citywide and enhance waste collection systems for businesses and residents of multifamily properties while addressing racial equity. To keep revenues aligned with program costs over the five-year forecast, it is necessary to increase the commercial tonnage fee by $1.00 per ton from $16.60 to $17.60 as set forth in Exhibit B.
- PCC Section 17.102.250 provides that the commercial tonnage fee will be established via a rate ordinance adopted by Council.
NOW, THEREFORE, the Council directs:
- The Residential Solid Waste and Recycling Rates fee schedule (ENN-2.09) as set forth in Exhibit A is binding City policy.
- The per ton fee for commercial solid waste (ENN-2.10) as set forth in Exhibit B is binding City policy.
- Council authorizes the Administrator to establish a discount program for qualified low-income customers served by the City’s residential solid waste and recycling system.
- This ordinance is effective on and after July 1, 2025.
Official Record (Efiles)
An ordinance when passed by the Council shall be signed by the Auditor. It shall be carefully filed and preserved
in the custody of the Auditor (City Charter Chapter 2 Article 1 Section 2-122)
Passed by Council
Auditor of the City of Portland
Simone Rede
Impact Statement
Purpose of Proposed Legislation and Background Information
Portland Ord. No. 191534 (Franchise Agreement) governs rate-setting process for residential solid waste and recycling fees. This agreement with collection service providers requires annual rate review and requires the City Council to set rates at a level that covers overall cost of service, target operating margin, plus 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 2024 have been independently reviewed by a certified public accounting agency and adjustments made to reflect any changes.
This ordinance also increases the commercial tonnage fee charged to permitted garbage and recycling collection companies for each ton of garbage collected from business and multifamily accounts.
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 2024 have been independently reviewed by a certified public accounting agency and adjustments made to reflect any changes.
The City has significantly expanded its public trash can program, increased programming for multifamily properties, and used these as opportunities to include haulers that historically have not been part of the residential franchise system. In addition, for FY 2025-26 the Solid Waste Management Fund is proposed to supply an additional $1M for the Impact Reduction Program (a total of just over $2M) on a one-time basis to support cleanup of waste associated with unsheltered homelessness. To cover the costs of the public trash program and support the unsheltered waste cleanup, this Ordinance increases the City’s Commercial Tonnage Fee, by $1.00 per ton, from $16.60 to $17.60, beginning FY 2025-2026. (Note, this is a reduction from the prior SWMF forecast which planned for a $2 increase in FY 2025-26.)
Financial and Budgetary Impacts
This Ordinance raises the commercial tonnage fee by $1.00 per ton from $16.60 to $17.60 on July 1, 2025. City revenues from the commercial tonnage fee are expected to increase by roughly 6%, or approximately $305,000. This Ordinance also raises rates for franchised residential solid waste and recycling collection. This increase will result in increased franchise fees paid to the City, estimated at $289,000.
Economic and Real Estate Development Impacts
Bureau of Planning and Sustainability staff met with residential haulers in the Portland Haulers Association multiple times as the rate review process was conducted, integrating their feedback into the proposed rates.
BPS staff presented the rate review process and anticipated drivers of a rate increase with the Transportation & Infrastructure Committee and Finance Committee on April 7, 2025.
On May 7, Councilor Morillo, serving as Portland’s representative to the Regional Waste Advisory Committee (RWAC) sent a letter to Metro Councilor Mary Nolan and department leadership in Waste Prevention & Environmental Services to provide feedback on Metro’s proposed fees and budget, touching on the cumulative significant fee increases over the last four years, need for continued improvements to the process by which Metro sets disposal fees that impact our collection fees, and the need to maintain and expand revenue sharing to cities and counties working on waste issues in partnership with Metro and DEQ. (Attachment A)
This ordinance is scheduled to be heard by the Finance Committee on June 9, 2025, where public comment will be taken.
Bureau of Planning and Sustainability staff sent an email to all permitted garbage and recycling companies on April 11, 2025, announcing the proposed increase to the Commercial Tonnage Fee. Any businesses utilizing a permitted commercial hauler for waste services will be impacted by this increase. All businesses in the City will benefit from the positive impacts of expanded public trash can service and cleanup services provided by the Impact Reduction Program.
Community Impacts and Community Involvement
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 4 to 4.5 percent 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 $1.80 from $42.00 to $43.80 per month.
As a result of the proposed commercial tonnage fee, permitted commercial garbage and recycling collection companies will pay the City an additional $1 per ton for commercial garbage collected in Portland.
Bureau of Planning and Sustainability staff sent an email to all permitted garbage and recycling companies on April 11, 2025, announcing the proposed increase.
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.
- The service has a track record of being very cost effective and performing well. After adjusting for inflation, even with the recommended increase, costs remain at or below the cost for the same service in 2012.
- 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.
- 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.
100% Renewable Goal
Not applicable
Economic and Real Estate Development Analysis
Analysis provided by Prosper Portland
Prosper Portland staff has reviewed the Economic and Real Estate Development Impact Analysis submitted for this action and finds that it satisfies the requirements set forth in City Council Resolution 37664. The analysis is sufficiently detailed and complete to be considered a final statement for purposes of this action.
Document History
Document number: 2025-230
President's referral: Finance Committee