San Diego city leaders have finalized an agreement that will reduce the monthly trash pickup fee and phase out paid parking in Balboa Park by the end of the year. The deal emerged from an unlikely series of negotiations involving former and current city officials, labor leaders, and pro-business advocates.

The agreement will lower the monthly trash fee to $38.75 by mid-2027 and eliminate parking charges in Balboa Park before year’s end. This compromise is expected to reduce city revenues by roughly $2.2 million in the upcoming fiscal year, escalating to about $14.4 million in the following two years. The financial impact poses challenges to the city’s budget and service levels.

The process began when City Council President Joe LaCava reached out to former Mayor Kevin Faulconer in Washington, D.C., where both attended a lobby event with the San Diego Regional Chamber of Commerce. Faulconer, now leading the Lincoln Club, had been spearheading a campaign to place a ballot measure aimed at repealing the controversial trash fees and paid parking. Faced with the possibility of voter backlash and significant fiscal damage, LaCava sought to negotiate an alternative solution.

Over several weeks, discussions unfolded behind closed doors and in private meetings—including a session at LaCava’s home—with key figures such as Lincoln Club Chairman Scott Bedingfield and Michael Zucchet, head of the city’s largest labor union and former councilman. The talks also involved Mike Aguirre, a former city attorney preparing to sue the city to reduce the fees. When the initial settlement proposal was rejected by the city council, Councilmember Stephen Whitburn entered negotiations to help finalize the terms.

This complex alliance between political rivals and stakeholders demonstrates the lengths to which city leaders went to prevent a costly ballot measure. Officials had warned that a successful repeal could create a budget shortfall of around $150 million, forcing substantial cuts to public services. LaCava stressed that his primary motivation was to stop the ballot initiative rather than respond to the pending lawsuit.

With the council’s recent approval, Balboa Park visitors will no longer face parking fees, and residents will benefit from a reduced trash fee over the next few years. The agreement reflects a rare example of bipartisan cooperation aimed at addressing financial and community concerns tied to unpopular city policies.