Rising trash collection rates tied to higher cost of doing business

Business

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Rumpke Waste & Recycling recently raised rates for customers in Ohio, saying the increase is tied to the higher cost of doing business. | Facebook/Rumpke Waste & Recycling

Given last year’s persistently high inflation rates, it should come as no surprise that the cost of doing business has gone up. When that happens for service providers, it’s a good bet that costs will go up for customers, too.

For example, when the cost to dump trash at the landfill goes up, municipalities that offer waste collection services typically raise fees to cover those higher costs. Similarly, when businesses are paying more for fuel and operating costs, the increase is passed along to the customers. That explains, in a nutshell, why you might have experienced sticker shock when you opened your recent trash utility bill. 

In Mount Vernon and much of Knox County, residents have a choice among trash collectors, with one of the bigger ones being Rumpke Waste & Recycling, which recently raised rates across its service area. 

"While there have been price increases for services in different service areas, they appear to be in line with the cost of doing business," Jeff Meyers, east area communications manager for Rumpke, told the Mount Vernon News.

He confirmed rate increases, which vary depending on where people live, but did not give specifics with regard to how much they were in Knox County. A copy of a Rumpke letter, found online, to Cleveland-area customers called for a 5% increase, which followed a 20% increase in July 2022.

Rumpke, like most companies, regularly reviews pricing structures and when it is determined that an adjustment is necessary, customers receive a written notice, Meyers said.

However, Rumpke customers are complaining about the increases, noting they were couched in “recycling” and “fuel surcharge” fees.

Mount Vernon resident Richard Miller told Mount Vernon News his bill was inflated overnight from $67 per month to $106 per month due to recycling charges and fuel surcharges.

“I said, 'What's up with this recycling charge?' And they said, ‘Oh, that's always been part of it. But this month we decided to start breaking it out,’” Miller said. 

“OK, if that's true, then my bills should have stayed the same, right? And then my bill should have gone down, plus the recycling, but my bill did go up by $12, which is the recycling charge. So it went way up. So that excuse, that's BS.”

“Then I said, 'OK, look, why wasn't I notified of this?' But she said, 'Your bill notification.' And I said, 'Hang on, there is nothing on my bill.'”

Miller said the operator at Rumpke was trained to assuage upset customers like himself.

He said he felt the need to warn other customers of the business practice in case the Mount Vernon City Council decides to mandate one trash company be used by city residents.

“I think the community needs to know, No. 1, the predominant waste carrier in this area is doing this kind of thing,” he said. “And No. 2, do you realize this is what you will be forced to use if the Mount Vernon City Council pushes through what they've been trying to push through?”

Miller said the increase in the bill wasn’t a problem as much as a lack of transparency and the consumer impact for other customers who may be impacted.

“I hate when people dishonestly take advantage of other people,” Miller said.

Municipalities that don't provide such services themselves typically contract with companies to do trash and recycling collection. In such cases, the towns announce and open bidding periodically. Officials review the bids and what services will be provided and sign a deal with the provider. The contract outlines expectations, and when unexpected circumstances come along, fees can go up periodically throughout the term of the pact.

In Mount Vernon and the surrounding area though, residents can choose their waste collection service from among several providers, including Rumpke and waste management, the Mount Vernon mayor's office said. In light of Rumpke's increase, Jenna Hicks, district director for the Delaware, Knox, Marion and Morrow Solid Waste District, said her office received multiple calls from people asking about how to change their trash collection service.

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