Morro Bay approves 35% garbage rate hike

The Morro Bay City Council unanimously approved a significant garbage rate increase of 38.58% this week, following recent hikes in water, sewer, gas, and electric bills for city residents.

Ratepayers were given 45 days to submit written objections to the increase. To block the hike, a majority of 2,680 ratepayers needed to voice their protest in writing, but only 723 did so, according to a report by CalCoast News.

The increase is in response to requests from various garbage companies across the county, who are facing rising costs due to new food waste processing requirements, escalating gas prices, and other operational expenses. These companies are constrained by a 7% profit margin cap.

Morro Bay Garbage Service requested the 38.58% increase for the first nine months to address a nearly $1 million deficit. Subsequently, the increase will reduce to 20.20%.

City officials have estimated a $48,000 increase in the city's waste collection expenses for the 2023-2024 fiscal year. However, due to a 10% franchise fee, the city expects to generate an additional $92,000 in revenue for the same period, resulting in a net profit increase of $44,000.