Sanitation Driver James Carter picks up the trash in a private condominium community in the Paradise Valley area of San Diego March 3, 2011. For nearly a century, the city of San Diego has provided free trash pick?up for homes on public city streets. Now, facing a giant deficit the city is considering stopping the free service for a few thousand homes that are in the private communities which means several hundred thousand people will still receive the free pick?up. The ones who are being targeted are not happy March 3, 2011 (Photo by Mark Boster/Los Angeles Times via Getty Images)
San Diego, California – San Diego has foregone more than $25 million in potential revenue over the past 14 years due to outdated franchise fees from private trash haulers, according to the city auditor’s office. The auditors argue that they could have put those lost funds toward core services such as street repairs, parks, and libraries—needs that remain pressing for many neighborhoods.
At the center of the issue is a performance audit of the city’s trash and recycling system, which found that the per-ton fee paid by private waste removal companies has not kept pace with inflation. Currently, the city charges $18 per ton—an amount the auditor says should be closer to $25 to reflect current economic conditions. The difference amounts to at least $4 million in lost revenue every year since 2010.
For the average household, the adjustment would mean an estimated increase of $1.74 per month. But even that modest increase drew criticism during a hearing before the city’s audit committee this week.
“This all adds up, and consumers continue to have to pay more and not getting better service,” said Jim Madaffer, executive director of the San Diego County Disposal Association. Madaffer pointed to recent backlash over rising residential trash collection fees and warned that similar frustration could spill over if franchise fees for commercial and multi-unit properties are increased.
The city’s auditor, Andy Hanau, pushed back on those concerns, arguing that San Diego’s current rates remain well below those of peer cities. “Los Angeles is $45 for the two fees combined. Long Beach is $54,” Hanau said, referencing both the base franchise fee and an additional $13 AB 939 environmental charge. “San Diego’s total is $31.”
He also emphasized that the revenue from a fee increase would directly support essential services. “That’s $1.74 a month that’s currently not going towards street maintenance, is not going towards parks and libraries that our residents use,” Hanau said.
As San Diego grapples with ambitious climate goals, deteriorating roads, and growing demands for public services, the debate over how to fund waste management touches on broader questions of fiscal responsibility and equity. The audit committee voted to advance the report to the full City Council, which will now weigh next steps, including whether to adjust fees and how to do so in a way that balances fairness with fiscal necessity.
A study is now underway to evaluate how the city and trash removal companies can move forward. Both sides say they are open to negotiating a more sustainable path.
