Phoenix Public Works Department proposes solid waste rate increases

The Phoenix Public Works Department has proposed a plan to Phoenix City Council that would adjust the residential solid waste rate to keep up with rising operating costs.

The proposed adjustments to the monthly solid waste fee are as follows:

• $6 monthly rate increase effective July 1, 2026;
• $6 monthly rate increase effective July 1, 2027;
• $5 monthly rate increase effective July 1, 2028;
• Include an inflationary factor not to exceed 5 percent annually from July 1, 2029, through June 30, 2034; and
• Increase the optional curbside green organics collection subscription fee to one-fourth of the applicable monthly solid waste rate, effective July 1, 2026.

The city of Phoenix last approved a solid waste rate increase in 2020. Since then, the department says staff costs have risen 32 percent, vehicle costs have gone up by 52 percent and construction and maintenance costs for critical infrastructure have increased by 40 percent.

During the same period, the monthly solid waste rate increased by 2 percent annually. The solid waste division is expecting a budget shortfall of $20.8 million this fiscal year. To address this shortfall and keep revenue on pace with expenses in the future, the department says this multi-year fee increase is recommended.

According to the department, the increase will ensure the solid waste division 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.

The solid waste division of the Phoenix 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 its revenue comes from drop-off disposal fees and the sale of recyclables, 86 percent of the division's revenue comes from the monthly fee residents pay to have their waste collected from the curb. This fee is reflected in a customer’s monthly city services bill, which also includes fees for water and sewer services.

If a rate increase does not go into effect starting in July, the Phoenix Public Works Department says it would be unable to provide solid waste collection and disposal services as they currently exist, and the alternative to a rate increase would be large reductions in service.

Phoenix City Council will vote on the proposed rate adjustment April 22.