Hauler Rebates after 2019
At its May 16, 2019 meeting, the Ramsey/Washington Recycling & Energy board decided to set the hauler rebate at $0 beginning in 2020, which will end the public subsidy of waste management in the East Metro.
Ramsey/Washington Recycling & Energy is setting rebates at $0 because rebates subsidize the real cost of trash. These subsidies are expected to cost Ramsey and Washington counties about $4.6 million in 2019. When hauler rebates are phased out, the cost of managing trash will no longer be subsidized by Ramsey and Washington counties, and residents and businesses will pay the actual cost of trash disposal.
The disposal cost (the fee trash haulers pay to deliver trash to the R&E Center, which has been offset by hauler rebates) is approximately 1/3 of the total cost of garbage service (other costs include insurance, labor, fuel, trucks, etc.). Haulers may or may not pass costs associated with the rebate elimination on to customers; however, eliminating the hauler rebate could increase trash bill costs by about $1.00-$1.25 per month per household.*
Ramsey/Washington Recycling & Energy hopes to support haulers and municipalities in communicating with their customers and constituents on this topic. As communication tools are developed, they will be posted here:
* Generally, a household produces about one ton (2,000 pounds) of trash each year. At a 2019 tipping fee of $79 per ton, with a rebate resulting in a net tipping fee of $69, the monthly cost is estimated at $5.75 for an average household. For example, if the 2020 tipping fee were set at $82 per ton with no rebate, the monthly amount would be $6.83, an increase of $1.08 per month for the average household.