Council approves 8.6% rate increase for Waste Management franchise
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Summary
After a presentation and council questions about service, local office hours and cost pressures, the council approved an 8.6% rate adjustment for Waste Management’s Newberg franchise to restore the company’s target rate of return.
The Newberg City Council on May 19 approved an 8.6% rate increase for Waste Management’s franchise services in the city, following the company’s 2024 annual report and a staff‑presented comparison of regional rates.
Dave Huber, senior public sector manager for Waste Management (WM), said the company employs local staff in Newberg and had added an on‑site customer service representative and summer hours at the Newberg transfer station. WM said it serves 6,731 residential customers in Newberg with weekly trash, every‑other‑week recycling and yard debris service, and 558 commercial customers.
Megan Gallagher, WM pricing analyst, told the council WM’s 2024 return on revenue was 3.76 percent after cost increases and that projected 2025 costs (disposal, vehicle depreciation and labor) left the company looking at a 2.26 percent projected return. Gallagher said WM was requesting an 8.6 percent rate increase to move toward the company’s targeted 10 percent rate of return.
WM provided an example: a common 35‑gallon garbage cart charge of $23.83 would increase by $2.05 to $25.88 per month under the proposed 8.6 percent adjustment. WM and staff compared Newberg rates with nearby communities and said Newberg would remain comparable or lower than several peers after the increase.
Councilors pressed WM on customer service and local accessibility. Mayor Rick Rosacker and other councilors noted WM had added a local representative and local office hours and that staff were pursuing operational fixes to reduce transfer station queueing. Councilor Peggy McBride said residents were struggling with inflation and proposed a lower increase; she told the council she would “probably support something as high as 8% rate of return, a 6.2% increase” as a compromise. The mayor and other councilors emphasized tradeoffs between local service and the efficiencies of a regional operator.
A motion to approve an 8.6 percent rate increase for Waste Management’s Newberg franchise was moved and seconded and passed by a council majority. The motion was recorded as passing by majority (administration noted a majority vote was sufficient for administrative action). Councilors asked WM to continue local outreach and to return with any follow‑up information as requested by staff.