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Tigard council directs targeted bump to residential cart rates after hauler study
Summary
City staff and a consultant presented a rate study after franchise haulers reported a composite rate below the city's target. Councilors favored raising residential roll-cart rates rather than a uniform increase and asked staff to pursue outreach to Metro on rising disposal fees.
Tigard officials heard an analysis of city franchise haulers' finances and gave staff direction to pursue a targeted increase for residential cart service after a presentation by the assistant finance director and the city's consultant.
Assistant Finance Director Keith McClung told the council the city's blended rate of return for solid-waste service fell to 7.78 percent, below the 8-to-12 percent band in Tigard Municipal Code 11.0409 that triggers a rate review. "If it falls outside the eight-to-twelve percent rate of return, a rate study is triggered to determine the adjustments needed to bring the forecasted composite rate back to 10%," McClung said.
Consultant Chris Bell of Bell & Associates summarized factors affecting hauler costs: rising Metro disposal fees, expiration of a federal compressed natural gas tax credit, union contract increases and higher administrative and medical costs for labor. Bell said the federal tax credit for CNG trucks expired in 2025 and that change increases haulers' fueling costs even though CNG remains cheaper than diesel.
Bell presented two options for the council: (1) a targeted adjustment to residential cart collection rates (the service line most out of range) that would raise the 32-gallon roll-cart rate by roughly 2.6 percent (larger carts would rise about 2.2'to 3.4 percent depending on size); or (2) a blanket 1.9 percent increase across all solid-waste service lines.
Councilors repeatedly stressed that much of the cost pressure comes from Metro disposal fees and urged Tigard to press Metro for explanation or relief. Council President Wolf and other members referenced recent regional advocacy that had reduced a proposed Metro increase in other jurisdictions. "As an elected body, I think you have an opportunity to ask those questions," Bell told the council.
Several councilors said the fairest and most targeted approach is to raise rates for the residential roll-cart line rather than apply a small across-the-board CPI-style increase. Councilor Mary (last name not specified in the transcript) summarized the majority view: the roll-cart line is the revenue shortfall, so the increase should focus there.
Councilors also asked staff to return to the council with more analysis of cost drivers, including Metro tipping fees, and the possibility of inviting Metro staff to explain the recent, large fee increases. McClung said staff would pursue that outreach as part of follow-up work.
No formal ordinance or rate ordinance vote was taken at the meeting; council provided guidance to staff to proceed with the targeted residential cart adjustment and further inquiry into Metro fee drivers.
