Phoenix Public Works outlines proposed multi-year solid-waste rate increase and affordability programs

Phoenix — Phoenix Public Works told the City Council on Feb. 10 that its Solid Waste enterprise fund faces multi-year shortfalls driven by rising labor, equipment and construction costs and proposed a phased residential rate increase beginning July 2026 to preserve service levels and infrastructure.

Deputy City Manager Alan Stevenson and Public Works Director Felipe Moreno summarized the division’s scale — roughly 425,000 residential customers across 517 square miles, more than 600 solid-waste employees and a city-owned transfer-station and landfill network — and outlined cost pressures including a 32% increase in personnel costs tied to a 2023 classification-and-compensation adjustment and rising truck and construction prices (staff cited a 2020 truck cost of $333,000 versus $510,000 today).

Finance staff described the fund forecast, noting the solid-waste fund collected just under $190 million in monthly fees last fiscal year (about 86% of division revenues) and that forecasted expenses would outpace revenues without a rate adjustment. The department proposed a multi-year residential increase starting July 2026 of $6 per month with additional scheduled increases in later years and an annual inflationary factor (capped at 5% to be reviewed annually). For the curbside green organics subscription (current $5/month), staff proposed tying that fee to one-quarter of the monthly solid-waste rate (example provided: $10.83 if the July increase is approved).

To address affordability concerns, staff proposed increasing the City’s Project Assist contribution from $220,000 to $440,000 (raising the fund threshold to $1.2 million) and re-promoting the Save, Easy, Reduce and Recycle (R&R) program that allows customers to downsize containers for a $3 monthly reduction. The department said it will run nine community listening sessions (two Spanish-only) and an English/Spanish survey in February–March, return to council with a formal rate action April 22, and, if approved, implement rates July 1, 2026.

Councilmembers questioned geographic waste-generation data, income-based rate models, operational savings from program changes (staff reported an estimated $1 million annual saving from appointment-based bulk pickup and $1 million saved by maximizing landfill airspace), the long-term costs of deferring fleet and capital replacement, and projected debt service tied to recent bond strategy (staff projected about $20 million per year in debt service). Several councilmembers stressed concern about low-income households; staff said they are engaging an economist (Arizona State University) to analyze affordability options and will refine mitigation proposals in public outreach.

What happens next: Public Works will hold the listed listening sessions, collect survey responses, refine the rate proposal and affordability tools with finance and return to council April 22 for formal action.