Today, Mayor Donna Deegan issued the first veto of her administration: Ordinance #2024-800, the $12 million dollar “Cash for Trash” bill.
 
On Friday evening, General Counsel Michael Fackler provided an opinion memo highlighting a separation of powers issue with the recently passed legislation. It noted that “in approving the [City Council] amendment to the Contract, the Code provision providing that power to Council violates the separation of powers explicitly stated in the Charter.”
 
The City Council passed 2024-800 during its meeting on December 10, 2024 against the advice of the Council Auditors and the opposition of the Administration. The bill gives Meridian Waste a 29% increase, which amounts to an additional four million dollars per year for the next three years on top of increases built into the existing contract.
 
This increase pays for non-operating expenses, including lobbyist fees, employee appreciation cookouts and gift cards, local sponsorships and donations. Previously, the administration agreed to a 5% increase through a rate review process designed in the existing contract agreed to by the company and which was supported by the auditors. We did so because costs have gone up.
 
Taxpayers will not be seeing any additional services for this increased cost. Meridian Waste, which does provide exceptional service, told the City Council they would continue to deliver those services whether the company received this additional money or not.
 
“In vetoing this bill, I am holding true to my commitment to be fiscally responsible and always seek return on investment for our citizens,” said Mayor Donna Deegan. “The dramatic increase passed by the City Council – with $4 million coming from reserves – is fiscally irresponsible and comes at the expense of city priorities like affordable housing and homelessness.”
 
Mayor Deegan also released a video about her decision to veto this legislation.
 
During the budget process, Mayor Deegan proposed two programs which would have brought us closer to solving the double-sided crisis of affordable housing and homelessness. The City Council Finance Committee cut $10 million for homeless outreach to $1 million. Another investment the administration recommended was $10 million in seed money for an affordable housing fund that would have generated a $30 million matching commitment from the private sector. The Finance Committee stripped it out of the budget saying those dollars would have come from the city’s abundant operating reserves. 
 
Less than three months later, the Council is recommending spending those same reserve dollars to subsidize the profit margin of a well-connected private company.
 
Should the City Council override this veto, the administration will not agree to pay the super-sized trash rate increase. We will also seek to remedy the waste hauler rate review process moving forward.