Council to Hold Public Hearings on Refuse, Sewer Fee Increases

The City Council will hold two important public hearings on Monday on increases to the refuse collection and the sewer use fee rate and structure.

The proposed hike would raise the average monthly sewer use fee from $4.55 to $11.37 and marks the first time the City has suggested an increase beyond the consumer price index since 2007.

The City-owned and operated sewer wastewater collection system, serving approximately 140,000 residents and commercial users, is currently funded by the Sewer Use Fee. This fee, which is part of customers’ utility bills, is used for the operation, ongoing maintenance, and needed capital improvements of the sewer collection system, which consists of 325 miles of sewer pipelines, three pump stations, and nearly 7,500 manholes.

To fully fund the sewer collection program, the City needs approximately $7.6 million every year. However, the City currently collects only $3.9 million on average each year.

The current sewer use fee is based on the consumers’ water use, which is considered proportional to the sewer system’s wastewater discharge. That methodology has been used since the fee was established.

However, the long-term statewide drought conditions and water conservation efforts have impacted the amount of sewer use fees collected over the last ten years, and as a result, the City has not kept up with the cost of maintaining Pasadena’s aging infrastructure, according to a City staff report, according to a service rate study performed in March. Based on that study, staff is recommending a fixed charge for both residential and commercial customers, plus a volumetric rate based on water consumption.

The fixed charges include 52 percent of collection-related costs that are fixed and do not vary with flow.

The proposed rate for single-family residences is a fixed monthly rate of $6.16 plus a volumetric rate of $0.65 per hundred cubic feet. Single-family residence water use is capped at 26 hundred cubic feet per month, which assumes that water usage above 26 hundred cubic feet is for irrigation and therefore does not go into the sewer collection system.

But the utility cost index has outpaced general inflation increases since 2020 by almost double and continues to rise. The cost of maintaining the sewer collection system has increased significantly. The new refuse rates could increase by 7% each fiscal year from 2026-2029 to adjust for inflation. City staff said the increase is needed as current rates are not generating enough revenue to keep up with operational cost increases and capital expenses.

David Davis, from solid waste consulting firm MSW Consultants said factors causing upward pressure on rates include the SB 1383 State organics recycling regulations, the closure of Scholl Canyon Landfill, and the capital expenditures on replacement trucks and containers.

The city has two types of customers: residential and commercial, and it provides two types of services: the cart service, which most residents use at home, and the bin service.

According to Davis, commercial rates are adjusted yearly by CPI but the residential rates have not been adjusted since 2012 and it needs to be increased in order for the city to generate the amount of revenue it needs.

Currently, residential customers that have a 32-gallon residential refuse cart are paying $16.29 monthly for waste disposal that is picked up once per week. The proposal increases the rate to $24.76 for the first year of the implementation of the rate increase. By 2028, customers will have to pay $32.46 per month for this service.

Residents who have a 60-gallon residential refuse cart who are currently paying $26.44 will need to pay $35.19 this year and those who have a 100-gallon refuse cart currently paying $40.99 will have to pay $46.61 if the proposal gets approved.

The rates for residential bin (the large 3.2 cu ft rolling bin) service are also being proposed to be increased.

Residents who have one of these bins picked up once a week who are currently paying a disposal cost of $124.70 will have to pay $249.92 while those who have their bin picked up twice a week who are paying $202.36 will have to pay $499.84 under the new rates.