Two Los Angeles City Council committees Wednesday advanced the first increase in trash collection fees in 17 years, part of the attempts to close a nearly $1 billion budget shortfall.

The increase would raise the monthly fee for single-family homes for what is formally known as the Solid Resources Program from $36.32 to $55.94, a 54% increase. The rate for multi-family residences with three to four units would go from $24.33 per month to $55.94, a 130% increase.

The proposal also calls for another 18% increase over the next four fiscal years, reaching $65.93 a month by the 2029-30 fiscal year.

The proposal will come before the full City Council Friday. If it is approved, the increases would go into effect Jan. 1.

This fee increase could impact approximately 743,000 households, and another 473,000 residencies that receive bulky item collection services.

Members of the Public Works Committee and Energy and Environment Committee convened for a special meeting Wednesday at City Hall to hear from the Bureau of Sanitation about this issue.

Barbara Romero, general manager of the bureau, also known as LA Sanitation and Environment or LASAN, said the fee as not been increased in the last 17 years. As a result, the program has been operated at a loss that requires a subsidy from the general fund.

In the 2025-26 fiscal year, that subsidy is expected to reach nearly $230 million — an increase of $89 million compared to an estimated $134.4 million in 2024 — without the proposed rate adjustments.

According to a fee study conducted by HF&H Consultants, the new rates would reduce the impact to the general fund to $180 million, which could be further reduced in the following four years.

Additionally, rate increases will cover the overall cost of the estimated $555 million program in the 2025-26 fiscal year. By the 2029-30 fiscal year, the program would cost to $657.4 million.

“It’s clear to me that we can’t continue to subsidize the solid waste program with general fund dollars. It’s not responsible budgeting, especially as we stare down a billion dollar deficit,” Councilwoman Katy Yaroslavsky said.

The study stated that new rates would reduce the impact to the general fund to $180 million, which would be further reduced in subsequent years.

The increase is necessary to address inflation, expenditures such as staff salaries, maintain vehicles and equipment, as well as overhead costs.

The bureau also seeks to raise trash fees to comply with SB 1383, which requires that 75% of organic waste be diverted from landfills. In 2023, the city began its Organics Recycling Program to divert organic food scrapes and food-soiled paper products from landfills by placing such waste into green containers.

The program collected a daily average of 720 tons of recyclables, 1,610 tons of organic waste, 15 tons of manure and 3,910 tons of residual waste in the 2023-24 fiscal year.

The annual cost of the program is approximately $66 million.

LASAN has a fleet of 720 heavy-duty vehicles to drive around collecting trash from the San Fernando Valley, West Los Angeles, North Central, South Los Angeles and Harbor Area.

Several committee members expressed frustration about passing increased rates to their constituents but insisted it had to be done. They also encouraged LASAN to “perfect” their messaging around this potential change.

“We need to update and get the cost recovery on these fees,” Councilwoman Ysabel Jurado said. “But I also recognize the sticker shock of these increases for a lot of Angelenos.”

The proposal includes a discount for seniors and other eligible residents who qualify for a low-income customer assistance program. The cost for their services would increase from $25.42 to $39.17. By the 2029-30 fiscal year, these customers would see a bill of about $46.15 a month.

If approved Friday, the City Council members would direct LASAN to begin an expansive outreach campaign with webinars, advertisements and pop-up events. The rate adjustment is subject to Proposition 218, requiring two public hearings to hear from property owners.

Proposition 218 is a constitutional amendment that limits the methods by which local governments can levy taxes, fees and charges without taxpayer consent.

It would take additional steps before such a fee increase can be implemented and require further approval by City Council.

Last year, the City Council voted to double its sewer fees over a similar period of time. That rate was last updated in 2020.

LASAN also encouraged the rate increase to support labor contracts and maintain sewer infrastructure.

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