Oak Harbor may be looking at increasing the rates residents pay for garbage and recycling pickup, or doing away with recycling altogether.

Public Works Director Cathy Rosen said at a council workshop Wednesday that the company the city contracts with to handle recycling significantly increased the tonnage rate it charges for the second time in about six months.

The problem is that the market for recyclable materials collapsed after China stopped accepting certain types of recyclables and increased the quality of what it will accept.

“This is an issue that is nationwide,” Rosen said. “It is not just affecting the city of Oak Harbor.”

Island Disposal is on a contract to accept co-mingled recyclables from the city.

Last October, the company increased the rate it charges the city from $45 to $94.35 a ton, a 110 percent increase.

The company recently notified the city that the rate was increasing to $135 a ton, a 43 percent hike, as of June 1.

The city delivers about 102 tons a month of recyclables to Island Disposal, Rosen explained.

In comparison, the city pays $109 a ton to dispose of solid waste.

HR Engineering is in the process of doing a rate study of utilities for the city. Rosen proposed that the city also ask them to figure out what the rates would be for customers if the city continues roadside recycling and if it suspends the program. Current rates range from $14.53 for the 20-gallon garbage can to $44.37 for the 95-gallon cans.

Once the council has that information, then it will be able to make an informed decision.

The issue is complicated by the fact that the city budgeted to replace its three recycling trucks next year at an estimated cost of $1 million, Rosen said.

Suspending the recycling program, however, wouldn’t mean that the city wouldn’t have to buy any new trucks. If most people aren’t recycling, the amount of solid waste will likely increase and more trucks will be needed, Rosen said.

Councilwoman Tara Hizon and Councilman Joel Servatius said they would want any decision to be a community decision. Servatius said he hopes people would be willing to pay more to keep the recycling program, but some people may not see the value in it.

Hizon said suspending the recycling program would be a big change but people won’t want to see any more increases to their utility bill.

“The idea of increasing rates again, especially right now, is not palatable,” she said.

Councilman Jim Woessner predicted that about half of the citizens will be willing to pay higher rates to keep the residential recycling program while the other half would want to suspend the program to keep rates down.

If the recycling program goes away, resident will still be able to bring recyclables to the Island County transfer station, though fewer types of plastics are now accepted.