Urbana staff recommend keeping weekly curbside recycling and pursuing a 10¢ carryout bag fee to offset costs

City of Urbana staff told the Committee of the Whole on Nov. 18 that they recommend maintaining weekly curbside recycling service and pursuing a phased resident fee increase combined with a point‑of‑sale carryout bag fee to help fund the program.

The council heard three rate options and a proposed single‑use carryout bag fee during a staff presentation. Staff said the immediate option would raise the monthly per‑household recycling fee from the current $3.25 to roughly $7.65 beginning Jan. 1; a three‑year phase would move rates to $5.25 in year 1, $7.00 in year 2 and $8.75 in year 3; and a third approach would combine smaller monthly rate steps with a carryout bag fee subsidy. Staff said they prefer the smaller step approach plus a bag fee and recommended maintaining weekly service.

Why it matters: The choice affects monthly household costs, landfill diversion, and recycling participation. Staff warned that moving to every‑other‑week pickup could push more recyclables into the garbage; other council members said they prefer weekly service to preserve recycling rates.

Staff explained the single‑use carryout bag fee would most commonly be 10¢ per bag — a standard used by many Illinois cities — and estimated first‑year revenue of about $250,000 (with a wide margin of uncertainty). Staff estimated the bag fee would likely affect fewer than 100 Urbana businesses and said the fee would be implemented through retailer collection and remittance to the city. City staff said that most curbside processors no longer accept plastic carryout bags and that the program will stop accepting all plastic bags in curbside carts; residents should not place any plastic film in the curbside recycling container.

Staff also presented contract and budget timing: current contract bids are valid through Dec. 19; the city’s Ucycle Fund has about $450,000 in fund balance; staff requested a $300,000 budget amendment from the Ucycle Fund to execute a new contract and maintain weekly service while rate changes and bag fee revenue are implemented. Staff projected maintaining a ~10% fund balance under the scenarios modeled.

Council reaction was mostly in favor of maintaining weekly pickup and adopting phased increases with a bag fee. Councilmembers Grace, Chandra and others voiced support for the recommended small‑step increases plus the carryout bag fee, noting the environmental and equity benefits of preserving weekly service. One councilmember preferred a single larger jump or moving to every‑other‑week pickup; councilmembers expressed interest in phased public outreach to affected businesses and residents.

Action taken: The budget amendment that includes the $300,000 transfer from the Ucycle Fund was moved for approval as part of a broader omnibus budget amendment and sent to city council for final action; the committee did not adopt a final rate ordinance at this meeting.

Next steps: Staff said they will pursue business outreach, draft an ordinance for a carryout bag fee and present final rate recommendations and an ordinance for council consideration in the coming months. Residents should expect messaging from the city explaining that plastic carryout bags will no longer be accepted in curbside recycling.