Less trash means less cash for cities, companies

The U.S. has about 500 landfill-gas-to-energy sites.

Dwindling trash should be cause for celebration. But not when it means a $4 million budget deficit for city revenues.

In February, the city of Berkeley announced a $10 million budget deficit—$4 million of which stemmed from dwindling trash and recycling revenues.

In Berkeley, where the city runs its own trash and recycling service rather than relying on a private contractor, declining revenues from the city’s transfer station are attributable to the slumping economy and a lack of construction projects. In addition, the city is also losing money from its residential pickup service as residents increase their rates of recycling and composting, according to the city manager’s office. Meanwhile, low prices for recycled commodities added to the red ink, though prices are climbing up from their 2009 lows.

But Berkeley isn’t alone in its problem. Public and private entities across the country are looking for ways to make up for lost refuse revenue.

“It’s part of a national trend,” says James Thompson of San Diego-based Waste Business Journal.

Berkeley has responded by raising rates for its commercial and residential customers and increasing transfer station fees. In response to declining volumes, private companies have similarly compensated by raising tipping fees and cutting expenses, Thompson says.