The City of Memphis’ solid waste fees are not covering the cost of those services, and the administration of Mayor Jim Strickland may recommend a hike as part of the coming city budget season.

City chief operating officer Chandell Ryan told Memphis City Council members Tuesday, April 11, the administration will likely propose either a rate hike or some kind of restructuring of garbage service payments in Strickland’s final budget proposal next month.

The city currently charges $29.96 per cart as a solid waste fee on monthly Memphis Light, Gas and Water residential utility bills. It charges $79.64 a month for up to two carts for commercial property.

How your solid waste fee ballooned to $30 a month

Solid waste division director Philip Davis said the fee generates a total of $76.9 million a year for the fiscal year ending June 30 but the services cost $84.1 million. 

“We are going to need to address the fee for service in the budget,” Davis told council members. “The revenue side is not sufficient in our current operation model. That’s largely tied to bulk waste collection.”

Council chairman Martavius Jones has advocated tying the solid waste revenue stream to the property tax, which would allow the city to apply the fee to owners of vacant lots not connected to utility services. 

“The overall climate of this city is, make this city cleaner,” Jones said. “I think people understand if we have to pay more as long as they are getting that service. I don’t think anyone is going to object to that.”

Davis said switching solid waste fees to the general fund — which is property tax revenue — would be a complex legal question centering on whether it would be a fee or a tax. Depending on where the waste is on vacant properties, city code enforcement would have to note the garbage and refer it for pickup.

City Council delays move toward solid waste fee moratorium

It also would cost more than the revenue brought in, as Davis explained:

• By the solid waste division’s numbers, the city has 36,000 vacant parcels with no utilities.
• Applying the current solid waste fee of $29.96 to those property owners could bring in $12.9 million in additional revenue.
• The cost to the city of collecting the solid waste from all 36,000 comes in at $15.5 million a year.
• In order for just that expansion of solid waste service to pay for itself, the solid waste fee would have to be $35.86.