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In a move to address an estimated $1 billion shortfall in the next fiscal year, Los Angeles elected officials will consider a proposal to raise 54% from $36.32 per month to $55.94.
Two committees will be convened in a special session on Wednesday to discuss the proposal. This requires two hearings and further approval by the city council. The rate increase will take effect in 2025/26, with an additional 18% increase over the next four years, reaching $65.93 a month by 2029-30.
The current garbage collection rate is $36.32 per month for single-family customers and $24.33 per month for multi-family customers. The new rates could apply to both these categories.
According to a fee survey by HF&H Consultants, the Trash Collection, known as the Solid Resources program, operates with losses requiring grants from the General Fund.
By fiscal 2025, the subsidy is expected to reach approximately $230 million. This is an increase of $89 million compared to an estimated $134.4 million in 2024. Research shows that the new fees will reduce the impact on the general fund to $180 million, which will further reduce over the next four years.
The Department of Health, also known as Los Angeles’ Sanitation and Environment, expects the cost of garbage collection services to rise to more than $550 million.
According to Lasan, prices have not increased since 2008. Increases are needed to address inflation, staff salaries and other expenses, vehicle and equipment maintenance, and overhead costs.
The Bureau is also trying to raise its garbage fees to comply with SB 1383. In 2023, the city launched an organic recycling program, diverting organic food scuffs and food-manufactured paper products from the landfill by placing such waste in green containers.
From 2023-24, the program collected an average of 720 tons of recyclability per day, 1,610 tons of organic waste, 15 tons of fertilizer and 3,910 tons of residual waste.
The program costs approximately $66 million per year.
This can affect around 743,000 households and another 473,000 residences receiving bulky item collection services.
Lasan has a fleet of 720 heavy-duty vehicles that collect and run around from the San Fernando Valley, West Los Angeles, North Central, South Los Angeles and the port area.
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