Why Torrance says it needs to increase garbage collection rates
With recycling revenues down by more than half and operating costs up, Torrance officials are proposing a monthly garbage rate hike of as much as $3.75 a month by July.
If enacted, it would be the first trash rate increase in the community in five years.
The City Council will discuss the proposal at Tuesday’s meeting and is expected to set a June 27 public hearing date. Both meetings will start at 7 p.m. at City Hall, 3031 Torrance Blvd.
Without the rate increase, officials project an operating deficit in refuse collection of $1.3 million by June 30, 2018.
The projected deficit is chiefly due to the collapse of the recycling market, caused largely by increased recycling, he said.
“Although Torrance residents are recycling more than years past, the contraction of the recycling markets has reduced projected recycling revenue from $663,000 to $306,000 (annually), a 54 percent decrease,” Beste said.
Refuse collection revenues for fiscal year 2017 are project at about $10.7 million, Beste said. And because the operating expense budget is about $12 million, an operating deficit of $1.3 million a year would result at year’s end without a rate adjustment, he said.
EXPENSIVE TRUCK MAINTENANCE
In addition, operating costs have increased.
For example, new diesel-powered garbage trucks are more expensive to maintain than those with conventional gasoline engines.
Most of the 29,500 households in the city currently pay $26.58 a month for refuse collection. With the $3.75 monthly increase recommended by staff — a smaller $3.50 increase is also a possibility — the monthly bill would rise to $30.33, a 14.1 percent increase.
By fiscal year 2021, that bill would rise to $34.14 because of four recurring annual 3 percent increases tied to the consumer price index.
Even if the $3.75 monthly increase is approved, municipal officials said Torrance still will have some of the lowest garbage collection rates around.
In comparison, households in Pasadena — a community city officials often point to as being similar to Torrance in many respects — currently pay $26.44 a month; Los Angeles households pay $36.32.
OUTREACH PROGRAM PLANNED
The rate increase is expected to be adopted unless a majority of residential households make a formal written protest of the fee increase during a 45-day notice period to forestall it.
City officials plan an outreach program explaining the reason for the rate increase.
The city also is proposing new fee-based services in an apparent bid to raise additional revenue.
Currently, Torrance residents are allowed one free pickup of up to 20 large items annually.
While that would remain in place, the city is proposing a resident could pay an additional $40 to have 10 large items picked up, and $80 for 20 large pieces of trash, multiple times a year.
Qualifying low-income seniors and residents with a disability, who currently pay $9.23 monthly, will not see a rate increase, but will be affected by the CPI increases.
Torrance also raised sewer rates in January for the first time in five years to eliminate a $1.5 million deficit, but city officials said their rates remain among the area’s lowest.
