City residents will likely be paying more for garbage service beginning in July.

Under a proposal to be considered Wednesday by the Bend City Council, garbage companies will pay the city a franchise fee equal to 4 percent of their annual revenues for the right to do business in Bend.

The fee is expected to be passed indirectly to customers through rate increases beginning this summer.

Brad Bailey, vice president at Bend Garbage and Recycling, said his company will raise rates 10 percent this summer to reflect its expanded recycling services, regular inflationary adjustments and the new franchise fee.

The increase amounts to $1.25 on a residential customer’s monthly bill for a 35-gallon can.

Rates will go up slightly less for commercial customers, said Bailey.

Businesses will pay an additional 5 percent, which amounts to about $3.60 for a one-cubic-yard trash bin.

Bailey said his company is not opposed to the new franchise fees. The current system, in which companies pay the city an annual $1,000 fee, is out-of step with what other cities are doing, he said.

”(Bend) is an anomaly right now,” Bailey said.

Bend Garbage and Recycling counts about 10,000 accounts in Bend and splits the city contract with Cascade Disposal. Cascade officers did not return a phone call from The Bulletin on Monday afternoon.

Bailey said his company also contracts with Deschutes County, which charges a 3 percent fee. The surcharge generates about $120,000 for the county’s solid waste fund, said Mike Maier, county administrator.

Redmond also charges a franchise fee to its garbage hauler, High Country Disposal. City Finance Director Chris Earnest said High Country pays a 3.5 percent franchise fee, which generates more than $70,000 for the city’s general fund.

Bend City Councilor Chris Telfer said she hasn’t yet decided how she will vote on the proposed franchise fee.

Telfer said she is opposed to creating new fees to bolster the city’s general fund, which is used primarily to pay for police and fire services.

However, she said she would probably support the fee, if the new money is used for street maintenance to offset any wear and tear that might be done by garbage trucks.

”If there is a direct connection to raising fees and the way they are being spent, I could support it. But if it is merely to raise money for the general fund, I’m opposed to it,” she said.

Telfer is one of the only councilors to take issue with the new fee, which is part of an effort by the city to create new revenue streams.

Councilor Bill Friedman, one of the council’s longest-serving members, said the garbage fee issue has been discussed for years without adopting a policy. He supports the new fee.

”We know that there are significant budget shortfalls in the area of road maintenance, and hopefully we will dedicate at least part of the money to doing routine work on the roads we need,” Friedman said.

The fee is expected to generate about $376,000 annually for the city.

At this point, it appears unlikely the city will back away from the proposal. The city staff and budget committee have already factored the additional money into next year’s budget, which is also on the meeting agenda for Wednesday night.

Interim City Manager Ron Garzini said he hasn’t heard any objections from councilors to the fee.

He said the move also reflects priorities that residents have identified in community surveys. The results of the most recent survey were released earlier this month and are available on the city’s web site: www.ci.bend.or.us

”It was a high priority of the citizen survey to maintain the surface of roads, and we’re continuing to try to find ways to recover costs where we can,” Garzini said.

Eric Flowers can be reached at 541-383-0323 or eflowers@bendbulletin.com.