Explainer: Residential Solid Waste Rate Adjustment Proposed
The Public Works Department has presented a plan to City Council that would adjust the residential solid waste rate in order to keep up with rising operating costs.
These days, it feels like our wallets are under assault from every angle. With rising costs in areas like housing, groceries, gas, and healthcare—we all wish the basic necessities like water, power, and trash service could just stay constant.
Unfortunately—as the costs of providing these services rise—we’re forced to choose between rate adjustments or service level adjustments. Let’s take a look at the proposed adjustments and the current service levels.
If a rate increase does not go into effect to start the fiscal year in July 2026, the Public Works Department would be unable to provide solid waste collection and disposal services as they currently exist. The alternative to a rate increase would be large reductions in service.
The Proposed Adjustments
July 1, 2026
+$6 monthly
New Proposed Rate $43.32
July 1, 2027
+$5 monthly
New Proposed Rate $49.32
July 1, 2028
+$6 monthly
New Proposed Rate $54.32
Proposed adjustments include an inflationary factor not to exceed 5% annually from July 1, 2029 through June 30, 2034.
| Month/Year | Proposed dollar increase | Equivalent % increase | New monthly fee |
|---|---|---|---|
| July 2029 | up to $2.72/month | up to 5% | up to $57.04 |
| July 2030 | up to $2.85/month | up to 5% | up to $59.90 |
| July 2031 | up to $2.99/month | up to 5% | up to $62.89 |
| July 2032 | up to $3.15/month | up to 5% | up to $66.03 |
| July 2033 | up to $3.30/month | up to 5% | up to $69.33 |
The Current Level of Service
Weekly residential garbage and recycle collection
Monthly drop-offs (up to 1 ton) at transfer stations
Bulk trash collections (4 per year per household)
Household Hazardous Waste home collection (1 per year) and drop-off events
Christmas tree drop-off (seasonal)
Dead animal collection
Processing of recyclables and landfilling trash
Illegal dumping and PHX CARES clean-up support
Rate Adjustment History
The last time a solid waste rate adjustment was approved was in 2020. Since then, staff costs have risen 32%, vehicle costs have gone up by 52%, and construction and maintenance costs for critical infrastructure have increased by 40%. During the same time period, the monthly solid waste rate only increased by 2% annually. The Solid Waste Division is expecting a budget shortfall of $20.8 million this fiscal year. To address this shortfall and to keep revenue on pace with expenses in the future, the multi-year fee increase is recommended. The increase will ensure that Solid Waste can continue providing reliable service and comply with legal requirements when it comes to operating necessary solid waste infrastructure, such as landfills and transfer stations.
How is the Solid Waste Division of Public Works funded?
The Solid Waste Division of the Public Works Department operates as an enterprise fund—meaning it covers all operating costs with its own revenue—rather than with general funds from the City's budget. While some of Solid Waste's revenue comes from drop-off disposal fees and the sale of recyclables, the vast majority (86%) of the money Solid Waste brings in comes from the monthly fee residents pay to have their solid waste collected from their homes. This fee is reflected on a customer's monthly city services bill, which also includes fees for water and sewer services.
Additional Information
Shaw Butte to City Transfer Station
15 miles
City Transfer Station to SR-85 Landfill
52 miles
Overall inflation since last rate adjustment in 2020
26%
Consumer Price Index for All Urban Consumers (CPI-U)
Area:Phoenix-Mesa-Scottsdale, AZ
Base Period:DECEMBER 2001=100
Source: U.S. Bureau of Labor Statistics data.bls.gov
