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Lake Oswego staff recommend no residential rate hike after Republic Services review; council gives direction on fee changes
Summary
A consultant review of Republic Services' 2024 franchise report found an adjusted overall return above the city target but recommended no rate increase through Dec. 2026; councilors gave direction to restructure bulky‑item fees, pause recycling contamination fees until county plan, and restrict an extra yardage fee to garbage containers.
City staff and consultant Bell and Associates presented the annual review of Republic Services’ 2024 franchise financial report to the Lake Oswego City Council on Oct. 7 and recommended no overall rate adjustment at this time.
Lindsay Waldrum, senior associate at Bell and Associates, summarized the analysis. After auditing reported route hours, accounts and disposal data, and adjusting for known cost changes — including a 3.9% increase in driver wages tied to a labor contract, an estimated 5% increase in administrative wages, a 5.5% Metro disposal rate increase effective July 2025, a 2.35% CPI adjustment, and a large fuel‑cost uptick tied to an expired CNG tax credit — the overallAdjusted return on revenues was calculated at roughly 13.65%. Waldrum said, “We believe the current projected return is sufficient to maintain existing rates through December 2026.”
The presentation included service‑line results: adjusted returns were about 11.8% for roll‑cart residential service, 20.4% for container/commercial service, and…
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