Trash Talk

It’s a bird — It’s a plane — Nope! It’s the garbage bill

Whopping Garbage Rate Increase Coming Your Way

by George Wooding

• • • • • • March 2025 • • • • • •

Single-family homeowners in San Francisco will see an anticipated 30% increase in their Recology refuse collection rates over the next three years making everyday expenses even more burdensome in an already expensive city.

Homeowners already pay property taxes, water, sewer fees, and energy costs, and this new increase compounds financial strain. Given inflation and rising housing costs, this additional expense is another hidden tax on homeownership in San Francisco.

San Francisco produces 5,000 tons of garbage per day. Recology has a monopoly on housing, apartments, and commercial property and removes about 2,500 tons — one-half — of the City’s refuse per day. Companies such as GFL Environmental, Waste Management, Sabesp, and Culligan remove the remaining refuse.

Due to Recology’s monopoly on single-family housing, many San Francisco residents feel trapped by Recology’s rate increases. San Francisco residents need to realize that Recology is currently providing the best refuse pick-up service in the Bay area at the lowest price levels.

Recology’s innovative compost, recycling, and landfill collection and processing programs have become a template for cities throughout America.

Low-income rates:

In San Francisco, low-income households may be eligible for a 25% discount. You can verify by showing your voucher or award letter for any of the following programs: Pacific Gas and Electric (PG&E) CARE program, Women, Infants, and Children (WIC), Low-Income Home Energy Assistance Program (LIHEAP), CalFresh/SNAP (Food Stamps), CalWORKs (TANF) or Tribal TANF, Head Start Income Eligible (Tribal only), Supplemental Security Income (SSI), Medi-Cal for Families (Healthy Families A&B), National School Lunch Program (NSLP), Bureau of Indian Affairs General Assistance, or Medicaid/Medi-Cal.

Recology charges San Francisco single-family homes less than any other major Bay Area city charges for refuse pick-up. San Francisco residents pay a monthly fee of $47.00 for refuse pick-up. San Jose charges $60.57 and Oakland charges $60.57.

Recology’s monthly refuse rates charged to San Francisco properties today remain at the same level as those charged in 2023 and will remain unchanged until Oct. 1 of this year. Therefore, if the Rate Board approves the full increase Recology is requesting, the rate for standard residential 3-bin service will have increased by $15.02 over a total of 6 years.

Recology is asking the City to increase the rate for standard 3-bin residential service by $15.02 over 3 years starting this fall ($8.54 on Oct. 1, 2025, $4.18 on Oct. 1, 2026, and $2.30 on Oct. 1, 2027). In 2027, Recology’s monthly garbage rate will be $62.02.

According to Recology’s January 3, 2025 “Request for Changes to Refuse Rates Report,” rates have not kept up with inflationary increases in recent years. Current refuse collection rates will remain in effect through September 30, 2025. These rates are only 0.3% higher than those that took effect on January 1, 2023. Rate adjustments are needed to bring garbage rates into line with the cost of doing business, cost-effectively expand services, and fund necessary capital investments. To this end, the SF Recology Companies are proposing an average increase in collection rates of 18.18% in 2026, 7.53% in 2027, and 3.86% in 2028 (30%). Individual customer rate increases may vary depending on the level and type of service. 1

Further, The SF Recology Companies also propose increasing the tipping fee* by 10.07% 2026, 6.27% in 2027 and 5.74% in 2028. Even after the proposed 18.18% increase in collection rates in 2026, rates for basic 3-bin residential service.

A “tipping fee” in the context of refuse pick-up refers to a charge levied on the weight of waste disposed of at a landfill, essentially a fee paid each time a garbage truck “tips” its load into the landfill, and is usually calculated per ton of waste; it helps cover the costs of operating and maintaining the landfill facility, adhering to environmental regulations, and is also sometimes called a “gate fee.”

It is also important to note that of the 18.18% proposed increase in 2026 collection rates, 12.46% results from adjustments to correct for under-projections in the previous rate process and to cover increased governmental fees and taxes that the SF Recology Companies are required to pay. Specifically, 9.42% of the increase is attributable to lower economic growth and payroll and higher payroll tax expenses than were projected in the previous rate process. Both of these misalignments resulted in rates for 2024 and 2025 being too low to cover costs adequately. As a result, a larger-than-usual increase is now needed to bring rates back up to a sustainable level.1 In addition, 2.02% of the increase is attributable to City-requested increases in the Impound Account and an increase in City business tax. 1

Recology needs better financial and expense forecasting if they are to survive. The public is not a piggy bank, nor should customers have to pay for gross financial mistakes.

Another troubling aspect regarding Recology rates was the passage of Ordinance F in 2022, which amended the San Francisco Refuse Collection and Disposal Ordinance. Three Recology employees and Mohammed Nuru, the Director of Public Works, were caught overcharging the agreed-upon Recology rate structure to the public. Recology was fined multimillion-dollar settlements and penalties which were repaid. Nuru and some Recology employees were convicted of criminal charges.

According to the February 6, 2025 edition of Mission Local, “Because of Recology’s monopoly status, rates needs to be approved by the Refuse Rate Board with input from the Commission on the Environment, the Commission on Streets and Sanitation, and Jay Liao, the Refuse Rate Administrator, who works within the City Controller’s Office to oversee fair and transparent Recology rates. The board will also hold public hearings.”

Refuse Rate Board Hearings.

These hearings are to share information about the rate-setting process for the Department of Public Works and Department of the Environment, to share program priorities and goals, and for Recology to share their rate change requests. There will be opportunity for public comment at each hearing, and once the Controller’s Office (Refuse Rates Administrator) has issued proposed refuse rates in on May 9th, the public will have at least 45 days to protest them in writing and in person at the Refuse Rate Board hearings. At the final Refuse Rate Board hearing, all protests will be counted and the Board will hold a final vote to adopt new refuse rates. Please attend these meetings and speak-out:

1. Friday, May 30, 2025 at 9:30 a.m.
2. San Francisco City Hall, Meeting Room 416
3. Wednesday, June 25, 2025 at 12:30 p.m.
4. San Francisco City Hall, Meeting Room 400
5. Monday, July 14, 2025 at 1:00 p.m.
6. San Francisco City Hall, Meeting Room 416
7. Tuesday, July 29, 2025 at 1:00 p.m.
8. San Francisco City Hall, Meeting Room 416

Refuse Rates Administrator Hearings
These hearings are to discuss the City’s refuse rates and review any proposed changes as part of an information gathering process to inform the Refuse Rate Administrator’s Proposed Rate Order.

1. Thursday, March 20, 2025 at 9 a.m.
2. Virtual*
3. Tuesday, April 1, 2025 at 9 a.m.
4. Virtual*

Recology filed the rate application to increase refuse collection rates in San Francisco on January 3, 2025. This will be the first rate increase since 2023. If the rate increase is successful, the new rate will begin October 1, 2025.

The rate increase unfairly burdens single-family homeowners, who will face steep price hikes with no competitive alternatives. Recology’s monopoly power allows it to raise rates unchecked, despite past corruption and overbilling scandals. This highlights the urgent need for strong oversight, Better financial forecasts increased accountability, and potential consideration of alternative waste collection models to ensure fair pricing.

George Wooding, Neighborhood Activist Emeritus

January 2025