NEWBERG, Ore. — The Newberg City Council voted 4-2 on May 19 to approve an 8.6% rate increase proposed by Waste Management, with Councilors Peggy Kilburg and Mike McBride voting against. The new rate takes effect July 1.
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The increase will raise the cost of the most common household trash can—a 35-gallon bin—from $23.83 to $25.88 per month.
Waste Management cited inflation-driven cost increases that reduced the company’s profit margin from 6.74% in 2023 to 3.76% in 2024. The company projects profits will drop further to 2.26% in 2025, well below what it calls a “reasonable rate of return” of 10%.
“A reasonable rate of return is a revenue goal for the corporation,” said Dave Huber, Waste Management’s senior public sector manager. “It is generally not reflective of the final profit rate.”
The target is set in the company’s franchise agreement with the city and typically ranges between 8% and 12%.
Megan Gallagher, a Waste Management pricing analyst, said revenue grew from $5.3 million in 2023 to $5.5 million in 2024. However, expenses rose more sharply due to increased labor and disposal costs, as well as vehicle depreciation.
The City Council last approved a rate increase on Oct. 1, 2024, when it authorized a 1.9% hike. Since then, Waste Management has hired a customer service representative based in Newberg, addressing one of the council’s main concerns from the previous meeting.
“If any customers here in the community come to our office Monday through Friday, our office door is open now to the public 12 p.m. to 5 p.m.,” Huber said. “That customer service representative will help you with any service-related issues you may have.”
Councilors discussed the proposed increase, balancing concerns over customer service improvements with the financial impact on residents.
Kilburg, who also opposed the previous rate hike in 2024, expressed similar reservations.
“I’m not opposed to a rate increase, but I don’t think I can support an 8.6% increase because our citizens are still grappling with making ends meet with inflation,” she said.
Councilor Robyn Wheatley made the motion to approve the increase, which was seconded by Mayor Bill Rosacker. The motion passed 4-2, with Kilburg and McBride opposed. Councilor Derek Carmon was absent.
Waste Management began its contract with the city in 2015. It currently serves 6,712 residential and 558 commercial customers. For more information, visit Waste Management’s website.
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