Los Angeles council votes to start rate process to reduce growing solid-waste subsidy

The Los Angeles City Council voted 10-1 on April 11 to begin the Proposition 218 process for proposed increases to municipal solid-waste rates aimed at reducing a large general-fund subsidy and covering new state-mandated organics requirements.

The proposal, presented by Barbara Merch, director and general administrator of Sanitation and Environment for the City of Los Angeles, would change the city—solid-waste rate structure to recover rising labor, equipment and composting costs and to implement compliance with California—SB 1383. "La tarifa de desechos sólidos ha sostenido el programa hasta el año fiscal 20 20 y 20 veintiuno," Merch said, adding that the general-fund subsidy has grown and that the city must adjust rates to continue services.

The nut graf: City staff told the council the sanitation program has relied on hundreds of millions of dollars in general-fund support in recent years and that new state organics rules and higher processing costs require higher customer charges to avoid shifting ongoing costs onto the general fund and other city services.

City staff described the fiscal drivers in detail. The presentation said the general-fund subsidy grew to roughly $217,000,000 over five years and that new processing costs driven by SB 1383 have sharply increased per-ton expenses for composting and organics handling. Stray Vargas, the department—finance lead, told the council the analysis supports a single rate across service classes because compliance and capital needs raise baseline costs citywide.

Councilmembers and the public pressed staff on impacts for low-income residents and multifamily housing. Councilmember Nazarian said he supported raising rates in principle but warned that "este cuerpo esperó por tanto tiempo para aumentar los suelos" and asked for staged adjustments and better data. Councilmember Price acknowledged the hardship and said city staff proposed expanding assistance programs and removing an eligibility barrier so more residents could access rate relief.

Public comment ran long and was dominated by sanitation employees and union representatives urging higher pay for sanitation workers and by community speakers asking for strong outreach and assistance for low-income households. Multiple speakers noted that the department provides 24/7 services and that equipment and workforce costs have risen.

Council action and what happens next: the council voted to begin the Proposition 218 notice and outreach process and adopt the rate model as proposed by staff, with implementation timing and the multi-year schedule presented by the department. The motion passed 10 in favor and 1 opposed; council records did not record individual vote names in the transcript excerpt available.

Budget and assistance details cited by staff: the presentation estimated additional revenue needs in the range described by staff (staff said they anticipated needing more than $184,000,000 for certain program components and noted the general-fund subsidy of roughly $217,000,000). Staff also described plans for translation, district-level outreach and an expanded low-income assistance program administered through the city's utilities program.

The council directed staff to proceed with public notices, district outreach and Proposition 218 timelines; a formal public hearing and final vote will follow the notification period set by law. Staff said notices and outreach materials would be made available in up to 16 languages and that revenues would be billed on the DWP cycle.

Ending: The council—decision sets a formal process in motion; it does not by itself finalize new customer bills. A Proposition 218 notice and subsequent hearing will determine the final rate levels and any exemptions or assistance adjustments.