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City proposes 2027–28 solid‑waste rate increases and a CCA compliance surcharge
Summary
City staff proposed a 3.25% annual increase to most solid‑waste rates for 2027–28, rebalancing charges between cart sizes; staff also outlined Climate Commitment Act compliance obligations and proposed a separate line‑item to raise an estimated $2.6–3M (staff proposed $2.75/month residential and $9/month commercial).
Marlene, presenting for the utilities team, outlined a proposed solid‑waste rate package for 2027 and 2028 and explained how the city intends to meet Climate Commitment Act (CCA) obligations.
On operational rate design, Marlene said most residential rates would rise roughly 3.25% annually to cover fleet, repair and contract costs while rebalancing charges for cart sizes because smaller carts had been underpaying and larger carts overpaying. She gave an example: the 30‑gallon cart is "just under $25 today" and staff proposed about a $1 increase in 2027 and another in 2028. Commercial customers and roll‑off accounts would face targeted increases (e.g., a 6% increase for some 1‑yard containers and a proposed new monthly rental fee for permanent roll‑off accounts).
On CCA compliance, Marlene said the city emits about 100,000 metric tons of non‑biogenic emissions annually and that recent auction prices were about $64–$65 per credit; she estimated gross exposure in the $6.45 million range without relief. She explained the legislature provided no‑cost allowances for baseline years but that 40% of allowances are consigned and must be sold through the Department of Ecology, which requires the city to buy an equivalent amount of credits and therefore raise money through rates. Staff proposed distributing roughly $2.6–3 million of CCA costs across customers and recommended a separate, labeled pass‑through on bills so customers can see the charge. "Our proposal is that we do $2.75 a month for residential customers and $9 a month for commercial customers," Marlene said.
Council members probed procurement and whether staff would hire brokers. Marlene said treasury and utility staff (Chris and Trace) would lead purchases with consultant advice as needed, preferring in‑house execution to avoid broker commissions. Staff also said they will propose an ordinance to exempt that pass‑through from the city's utility tax in order to avoid charging customers more to cover tax costs.
Next steps: staff will return with ordinance language and sample bills in August/September and will seek council approval of rates in September/October.
