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Breadcrumb: 4 ced › Community---Economic-Development---Fee-Study › Total

Table 1. FY 2024-25 and FY 2023-24 Rates for Primary Service Levels Adopted FY 2024-25 Rates, Dollar Service Level effective July 1, 2024 FY 2023-24 Rates Change 20-gallon cart $36.70 $33.95 $2.75 35-gallon cart $42.00 $39.00 $3.00 60-gallon cart $47.00 $43.55 $3.45 90-gallon cart $53.85 $49.90 $3.95 Every-four-week 35-gal. cart $35.70 $33.25 $2.45 Weekly Recycling Only $13.55 $12.95 $0.60 Composting and Recycling Only $27.60 $25.75 $1.85 Terrain Differential $5.90 $5.55 $0.35 • The organics disposal cost methodology was changed so that reported costs are inflated using the calendar year to rate year increase in Metro’s tip fee. • Fuel costs were down slightly from 2022 and are forecast to drop 2.3% for the rate year. • Inflation adjustments for wage rates are in the mid-5 percent range, which is a bit higher than forecast inflation. The Consumer Price Index forecast to rise 3.3 percent in 2024 and the Producer Price Index forecast to rise 2.2 percent. More detail on the factors driving the changes in FY 2024-25 rates can be found in Section IV. Table 2 presents the individual FY 2024-25 rate components for 35-gallon roll cart service levels. Table 2. Rate Components for 35-Gallon Roll Cart Service Adopted FY 2024-25 Rates, effective Dollar Rate Component July 1, 2024 FY 2023-24 Rates Change 35-Gallon Roll Cart Service Solid Waste Collection $ 4.16 $ 3.84 $ 0.32 Solid Waste Disposal 4.27 3.82 0.45 Recycling Collection 7.27 7.30 (0.03) Yard Debris/Organics Collection 4.83 4.50 0.33 Yard Debris/Organics Disposal 4.55 3.97 0.58 General and Administrative Costs 7.77 7.32 0.45 Roll Cart Depreciation, Interest 0.43 0.43 0.00 & Maintenance Net Disposal Cost, Recyclable Material 1.69 1.29 0.40 Operating Margin 3.67 3.41 0.26 Less: Incentive Discount 0.00 0.00 0.00 * Franchise Fees 3.36 3.12 0.24 Total $ 42.00 $ 39.00 $ 3.00 * Franchise fees are a pass-through expense assessed by the City on hauler gross revenues. Because haulers are allowed to pay franchise fees using revenues collected from customers, they are included as a component of rates. Franchise fees collected from customers are remitted to the City on a quarterly basis. Rates for both FY 2023-24 and FY 2024-25 include an 8.0% franchise fee. June 2024 Residential Curbside Collection Service Rate Study 2

II. PROGRAM ATTRIBUTES AND PERFORMANCE The City of Portland strives to provide high quality solid waste, recycling, and composting collection services while simultaneously maximizing recycling participation and diversion. Figure 1 shows annual garbage, recycling, and organics (yard debris/food waste generation) collected per household at the inception of the franchise system in 1991, and for the calendar years 2008 through 2023. Figure 1 Curbside Garbage, Recycling, and Organics (lbs per year per household) 3,000 2,500 2,000 1,500 1,000 500

1991 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Garbage Recycling Organics The following summarizes current program features and performance data. A. Solid Waste Solid waste, recycling and composting collection services are provided to City residents under a franchise system that limits the number of haulers authorized to provide service. As part of this franchise system, the City regulates the rates haulers are allowed to charge customers. In 1991, the City awarded franchises to 69 haulers. By December 2023, the number of franchised haulers had decreased to ten. Hauler franchises range in size from 1,200 to 57,000 residential customers. Franchised haulers may also serve commercial customers, and many have operations outside the City of Portland. Rates for commercial service within City of Portland are not regulated, whereas many surrounding jurisdictions regulate both residential and commercial rates. The standard level of residential service in the City of Portland includes every-other-week garbage collection, with weekly curbside collection of recycling and composting. Composting collection June 2024 Residential Curbside Collection Service Rate Study 3

includes yard debris and food scraps. Customers also have the option of selecting a variety of other service options, including every-four-weeks garbage service and on-call service. The City sets a variable rate schedule based on the size and number of containers and the frequency of collection. Rates are lower for smaller volume containers and − for a given container size − for fewer containers. This variable rate structure gives customers an incentive to reduce the volume of solid waste destined for landfills, by generating less solid waste and by recycling more of their solid waste stream. As of December 2023, 40.0 percent of Portland residential customers subscribed to 35-gallon cart service. Another 13.8 percent of of the City's residential customers subscribed to service levels that provide a lower volume of garbage capacity relative to the 35-gallon cart, including the 20-gallon can or cart, 32-gallon can, 35-gallon roll cart, recycling-only, composting and recycling only, on- call, or every-four-weeks service levels. In 2023, the amount of garbage disposed per household was 943 pounds (sample haulers only), compared to 1697 pounds in 1992. B. Recycling The most recent additions to the City of Portland’s curbside recycling program were in 2008, when plastic tubs, buckets, and flowerpots were added. At that time, customers were also provided with a blue 60-gallon recycling roll cart for all materials with the exception of glass and motor oil, which are collected on the side in a 14-gallon yellow bin. Plastic bottles, telephone books, aseptic juice and milk cartons, aerosol cans, and scrap paper were added between 1992 and 1996. Other materials that residents can recycle in their blue recycling roll cart are newspaper, glass, cardboard, aluminum, tin cans, scrap metals, and motor oil. No materials have ever been included in, and subsequently eliminated from, Portland’s curbside program. SW&R staff continues to evaluate new materials and processing capabilities, both for future expansion opportunities, and for opportunities to reduce costs. For more information on the City’s recycling efforts refer to the Solid Waste & Recycling section of BPS’s website www.portlandoregon.gov/bps/recycle ↗. In 2023, Portland households recycled an average of 509 pounds (sample haulers only) of material per recycling customer household. Only 226 pounds per household was recycled in 1991, prior to the adoption of the current residential franchise system. C. Yard Debris / Food Scraps Since October 31, 2011, yard debris and food scraps (sometimes referred to as “composting” or “organics”) are collected on a weekly basis, with options for customers to set out bagged yard debris extras for an extra fee per bag. In mid-2008 the yard debris collection system transitioned from collection via customer-provided cans or yard debris bags, to green 60-gallon composting roll carts for curbside yard debris collection. Prior to going to biweekly collection in 1993, monthly collection diverted only 100 pounds of yard debris per household annually. The addition of biweekly collection increased yard debris diversion to 230 pounds per household in 1994. In 2010, diversion averaged 523 pounds per household. Average disposal weight per household for 2023 was 1108 pounds per household (sample haulers only). June 2024 Residential Curbside Collection Service Rate Study 4

Parent: Community---Economic-Development---Fee-Study · PDF: pp. 858-860