TRUCKEE, Calif. — The Truckee Town Council on Tuesday approved annual rate increases for residential and commercial solid waste collection services and established a new rate stabilization fund aimed at helping reduce future rate spikes for customers.

The approved rates, effective July 1, include a 3.92% increase for residential service and a 0.75% increase for commercial service. According to town staff, the adjustments were calculated using a formula established under the town’s franchise agreement with Tahoe Truckee Sierra Disposal.

As part of the public hearing process, notices were mailed to residential property owners in April. Town staff reported that only one protest letter was received as of June 9.

A key component of this year’s rate structure is the creation of a rate stabilization fund. Instead of collecting the traditional 5% franchise fee that would typically be directed to the town’s General Fund, the town will redirect a one-time fee into Solid Waste Fund reserves.

Town staff said the change follows a recent court ruling, Rogers v. City of Redlands, which determined that certain fees intended to recover road repair costs associated with heavy collection vehicles may conflict with provisions of the California Vehicle Code. While legislation is pending that could clarify allowable cost recovery, staff recommended holding off on including a franchise fee in rates until the issue is resolved.

The stabilization fund is intended to help smooth future rate increases, offset unexpected program costs, and support capital projects related to solid waste services.

Consultants estimate the new fee will generate approximately $574,724 during the 2026–27 fiscal year—roughly equivalent to one month of operating expenses for the Solid Waste Fund.

“I think it’s important to call out and recognize that we are doing this work to support our ratepayers now and as we move into the future, but the cost of that is also to our General Fund,” said Vice Mayor Courtney Henderson. “Whether you look at that $574,724 that could have gone toward Capital Improvement Projects, toward more town staff, or toward more police. I’m just elevating it because these are the tradeoffs that we are having to make, and I think it’s important for people to understand.”