Cities claim these fees are needed to cover the cost of inspections and responding to resident complaints regarding overflowing dumpsters and debris scattered on the roads. Cities that do not have commercial hauling seem to be able to deal with these problems without any extra cost. The city touts as one of its advantages over the private sector the fact that customers have a voice on rates because the city council must approve all increases. Essentially, the city is inviting its local business customers to use political influence to affect the price they pay to have their dumpsters emptied. This is terrible policy.
Politicians are horrendously bad at setting prices.
They face the constant temptation to buy off interest groups by providing them with government services at below cost, if not for free, and then having the general taxpayer make up the difference. Governments are not businesses. They have powers that private businesses do not have. They also have weaknesses not found in the private sector. In order to protect taxpayers and entrepreneurs, cities should not be in a line of work if private companies are willing and able to provide the same service.