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Council adopts 2025 solid-waste collection rates, approves $400,000 remittance to Recology to reduce balancing account
Summary
After a public hearing under Proposition 218, the council approved annual solid-waste collection rates effective April 1 and authorized a $400,000 transfer from city reserves to reduce Recology’s balancing-account deficit. The council found no majority protest; 31,720 notices were mailed and 29 valid protests were received.
The San Mateo City Council on March 3 approved the city’s 2025 solid-waste collection rates and authorized a one-time appropriation of $400,000 to Recology to reduce a franchise balancing-account deficit.
Jack Johnson, the city’s waste management supervisor, joined consultants Rick Simonson and Gabe Sasser of HF&H Consultants to present the Prop 218 rate hearing. Staff summarized the cost drivers for 2025: Recology collection-cost adjustments (including impacts from a partial deferral in 2024), rising disposal and processing expenses and city program fees for street sweeping and litter-prevention work. The consultants showed a 2025 revenue requirement of about $33.4 million against projected revenues of $31.8 million, leaving a 2025 shortfall of roughly $1.58 million. Staff said the city’s cumulative shortfall—after prior adjustments and a 2024 one-time payment—was roughly $1.8 million going into 2025.
To mitigate the shortfall without imposing the full increase immediately on ratepayers, staff proposed moving rates closer to cost-of-service and using $400,000 from the city’s solid-waste reserves to reduce the balance owed to Recology. Johnson told the council the city has about $4.4 million in solid-waste reserves available to modulate rate impacts over several years. HF&H explained that state regulations and the California Constitution require rates be based on cost of service (cited during the hearing as Proposition 218 and related legal constraints), which limits the city’s previous “pay as you throw” model.
Only one person spoke during the hearing: Gary Germano told the council he appreciated the service but cautioned about rapid, compound increases — noting past rate increases in 2022 and 2023 and asking how the city intends to replenish reserves over time. City staff answered that reserves are replenished through program savings and that the city aims to use reserves to smooth rate adjustments while closing the cost-gap.
City Clerk tallying confirmed the Prop 218 protest count: 31,720 mailed notices created a protest threshold of 15,861 signatures for a majority protest; staff received 29 valid protests by the hearing’s end, well short of the threshold. With no majority protest, the council moved and seconded staff’s recommendation and voted 4-0 to adopt the 2025 rates and appropriate $400,000 to Recology. Mayor Robert Newsome Jr, Deputy Mayor Lorraine, Council member Diaz Nash and Council member Fernandez voted yes; one council member was absent and excused.
Why this matters: Rising collection, processing and regulatory costs have created a multi-year funding gap for the city’s bundled refuse, recycling and organics services. The council’s action narrows the gap without imposing the full projected cost immediately and uses reserves as a short-term offset, while acknowledging future increases may be required.
What’s next: The adopted rates take effect April 1, 2025. Staff said the city will continue annual rate reviews, monitor Shoreway and Joint Powers Authority capital projects that may increase costs and engage with the public on future adjustments.
