Neighbors react to possible trash fee increase due to $21 million sanitation deficit

New Orleans residents could soon see an increase in their monthly trash fees for the first time in 15 years. An audit requested by the mayor’s office discovered a $21 million sanitation deficit and issues with service address records.

Since 2011, residents have paid $24 a month for trash collection. But the fee has not kept up with inflation, even though contractors kept charging more for trash pickup as time went on. This led to millions of dollars from the city’s general fund being used to cover sanitation contracts.

“It’s not all that surprising that if they lifted the rug and found some dirty laundry or dust or dust mites, whatever you want to call it,” Neema Heravi, who owns two homes in the city, said.

Ann Marie Sequeira, a Lakeview resident of more than 30 years, expressed frustration with the city’s priorities.

“We still don’t have street signs from Katrina, and my light in my alley has been out since Katrina,” she said. “I think they should get the city running smoothly with lights and street signs before they start thinking about increasing anything.”

The city contracts three companies — IV Waste, Waste Pro, and Richards Disposal — to collect trash at over 160,000 locations. However, the audit revealed nearly 13,000 of those addresses are inaccurate, including duplicates, vacant properties, or locations that should not receive city trash services.

“If there will be less pickups because of duplicate or defunct addresses, then why do fees need to go up?” WDSU reporter Pari Apostolakos asked Chris Magee, a data analytics manager at the Louisiana Legislative Auditor’s Office, over Zoom Thursday.

“If you just look at inflation, the sanitation fee would have increased to approximately $34 if it had kept up with inflation, and to cover the deficit, the sanitation fee would potentially have to be higher,” Magee said.

Magee said the legislative auditor’s office compared New Orleans’ sanitation system to other similar areas like Lafayette, Baton Rouge and Jefferson Parish.

“We found that in those places, either the contract or the law does say, basically, in effect, the fee should cover the cost of providing the service, and in New Orleans, that’s not the case,” he said.

Heravi said his wallet will definitely feel any possible fee increase.

“It’s a necessary service. So at the end of the day, you know, if it costs a couple more bucks, I’m okay with it,” Heravi said. “But I feel that $10 is quite the jump.”

The audit also revealed that while the city pays for recycling pickup at more than 160,000 locations, only 40% of those places have a recycling bin. Additionally, no city residents have been paying for recycling. Those costs have all been covered by the general fund, contributing to the deficit.

The report was released this week, and the city has not yet announced when higher fees might take effect.