Morro Bay City Council votes to raise garbage rates by 38%
October 12, 2023
By KAREN VELIE
The Morro Bay City Council voted unanimously on Tuesday to raise garbage rates by 38.58%. City residents have already seen hikes in water, sewer, gas and electric bills.
Morro Bay rate payers had 45 days to send in written letters protesting the rate increase. If a majority of rate payers – 2,680 – had submitted a written protest before the hearing, the rates would not go up.
However, only 723 residents sent in written protest letters.
Countywide, multiple garbage companies have requested rate increases because of new requirements to process food waste, higher gas prices and other increasing costs. Garbage companies are restricted to a 7% profit for their services.
In order to cover a nearly $1 million shortfall, Morro Bay Garbage Service is requesting an increase of 38.58% for the first nine months of the rate hike. The rate of increase will then drop to 20.20%.
City staff determined the cost to the city for its trash collection use would increase by $48,000 for fiscal year 2023-2024. However, as the city collects a 10% franchise fee, it would collect an extra $92,000 for fiscal year 2023-2024, showing an increased profit of $44,000.
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