Garbage rates going up in South Lake Tahoe and El Dorado County

Residents in South Lake Tahoe will soon be paying more for garbage pick-up after the South Lake Tahoe City Council voted 4-1 to approve South Tahoe Refuse's request to raise rates for residential customers by 8.81 percent, the biggest one-time increase ever added to the service.

The rate increase will go into effect January 1, 2018.

The monthly rate for SLT customers will go from $26.55 to #28.89 for unlimited service, and increase of $2.34. Qualified seniors (65 and over and part of Liberty Utilities Care program) will pay an extra $1.95, taking their monthly rate to $24.15.

When South Tahoe Refuse (STR) originally asked for a 9.59 percent increase in May, 2017, the South Lake Tahoe Basin Waste Management Joint Powers Authority (JPA) hired Crowe Horwath, Inc. to do an analysis on the request. After looking at increasing labor costs, including workers comp and health care, and evaluating costs of doing business, the company recommended the lower increase.

Three six-percent increases were approved for STR to build the new Materials Recovery Facility (MRF), which opened in 1995. An extra $4.7 million was collected during those years that wasn't needed for the MRF, so instead of having larger increases, annual rates were raised by an average of 1.57 percent over the last six years and the excess funds were used to make up the difference.

But now that money is gone and STR needed to raise rates by the highest amount ever sought after they projected a $1.3 million revenue shortfall in 2018.

Rate payers could have been given the money as refunds, but STR chose to incorporate that money into what would have been higher rate increases.

“It’s a little confusing," said SLT Mayor Pro Tem Tom Davis of the use of the $4M. "If its confusing to us, its confusing to the public.”

The other partners in the JPA, Douglas and El Dorado County, also had to approve the increase for their residents at Lake Tahoe.

El Dorado County residents at Lake Tahoe will be paying 6.26 percent more for trash pick up in 2018, then 3.08 percent more in 2019. The Board of Supervisors had two choices during their December 12 meeting, to stagger the 9.34 percent increase as they approved, or have it all go into effect January 1, 2018.

Unlimited service for County residents at the lake will go from $30.47 a month to $33.32 a month by 2019.

South Lake Tahoe City Council could have voted to phase it in as well, something Councilwoman Brooke Laine preferred.

"I won't be supporting this increase but want to acknowledge the great service of South Tahoe Refuse," said Laine.

Douglas County residents will be paying 6.81 percent more if approved by the Commissioners. If approved, the monthly rate of $17.71 for one 32-gallon can or $34.11 for two 32-gallon cans will go to $18,63 and $36.42 respectively.

Rates can be expected to increase again in the next three years. The average annual rate increases for refuse collection are 2-3 percent.