City of San Diego auditor says city missed out on over $25M in trash fees

The San Diego auditor says the city missed out on more than $25 million since 2010 because fees haven’t kept up with inflation. They say that money couldn’t and should’ve been used for roads and more.

Local leaders are wrestling with varying solutions to fund street repairs and reach climate goals through commercial trash removal. The back and forth stems from the performance audit of the city’s trash and recycling collection.

According to the audit, the city is missing out on at least $4 million per year and more than $25 million of revenue since 2010. They say that’s because franchise fees — the fee that trash removal companies pay to the city — from private companies are not keeping up with inflation.

In the city of San Diego, that fee is $18 per ton, but the city auditor says it should be around $25 per ton. The impact on you would be an additional $1.74 per month per household.

The findings in the audit received some pushback during Wednesday’s audit committee hearing.

“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 says his customers, which include private companies and everyday San Diegans, are fed up.

“We’ve heard that recently, when the city thought it was going to charge $24 for picking up people’s trash from their homes, and they ended up charging $42,” Madaffer said. “Now, they’re coming along saying for the franchise haulers, those in apartments and condos, well you too are going to have to pay more.”

San Diego City Auditor Andy Hanau says that would still be lower than other major cities.

“For example, we charge $18 a ton, plus $13 a ton for the AB 939 fee, so for a total of $31 here in San Diego,” Hanau said. “Los Angeles is $45 for the two fees combined. Long Beach is $54 for the two fees combined.”

Hanau says a fee increase would benefit you.

“I know that cost of living is high right now, and expenses are, you know, of concern to people,” Hanau said. “But 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.”

The audit committee voted to send the audit to the full city council.

There will be a study to determine how the city and trash removal companies move forward. The parties involved say they are willing to get back to the table to negotiate what’s best for everyone.