Refuse fund shortfall prompts 10% proposed hike as residents raise service complaints

City consultants recommended a 10% increase to Annapolis’ residential refuse fee in fiscal year 2026, telling the Finance Standing Committee on April 29 that contractual collection costs have risen sharply and the fund would exhaust reserves within a few years without fee increases.

Dave Heider of Stantec said about 81% of refuse operating expenses are tied to the city’s residential collection contract and that operating expenses have increased roughly 25% over the last three years. He recommended a 10% refuse fee increase in FY26 and 5% increases in FY27–29 under a plan that would stabilize reserves; if the FY26 increase is deferred, consultants said the city would face much larger increases later (one scenario estimated a 20% increase would be required in FY27 to catch up).

Residents’ service complaints

Alderman O’Neil and other members relayed constituent complaints about inconsistent collection and service changes since outsourcing: missed pickups, varying arrival times, early-morning collection noise and refusal to collect loose bags. Public works staff said the current contract and the city’s policy require curbside containers because loose bags attract animals; the contractor has been directed not to collect bags outside of cans.

“We do enforce that it must be in a can because there are certain neighborhoods who’ve had horrible issues with… turkey vultures,” an assistant director said. Staff said they can and do return when complaints are reported and that enforcement typically begins with notices before citation.

Contract timing and procurement

Public works staff said the city’s refuse collection contract runs through June 30, 2026, and the city will issue a new request for bids in the coming months so any new contract will be in place before July 1, 2026. Several council members asked whether bid competition and contract structure can be used to improve service or lower costs; staff said they have seen both competitive pricing and service-quality issues in past procurements, and that bids sometimes come in with thin margins that affect vendor performance.

Staffing and administration

Public works staff outlined that the city retains four internal positions related to refuse: an office associate (billing and customer contacts), a contract supervisor (oversight and complaints), and a two-person crew that empties downtown cans and responds to other trash issues.

Ending

Consultants and staff urged the committee to consider the recommended 10% FY26 increase to stabilize the fund; officials said they will rebid collection services ahead of the contract’s July 2026 end and are open to contract and enforcement refinements to address service complaints.