COLDWATER, MI — In a rare move, city residents will see lower monthly garbage and recycling bills starting in July.
On Monday, the city council approved a new three-year contract with Republic Services of West Michigan.
Republic Services has managed Coldwater’s residential waste and recycling since 2012.
City Manager Keith Baker initiated the rebidding process for waste services.
Republic submitted the lowest of four bids on April 27.
City Finance Director Tom Eldridge said the new deal will reduce monthly charges by $2.25 to $2.50 for most households.
The standard residential rate drops from $20.75 to $18.25 per month in the first year, and the senior rate decreases from $19.50 to $17.25.
The contract includes a 5% increase in years two and three—an additional $0.85 in the second year and $0.88 in the third.
Even with these increases, residents will pay less at the end of the contract than they do today.
Water and Wastewater Rate Increases
Eldridge said the reduction will offset some of the water and wastewater rate increases approved by the Coldwater Board of Public Utilities and City Council in May.
For residential water customers, rates will increase by $1.24 to $27.54 for the lowest users and by $1.96 to $51.66 for those using 12,000 gallons per month.
Residential wastewater rates will increase by $0.69 per month to $41.15 for the lowest-use customers.
Those using 12,000 gallons of water per month will see their wastewater bills rise by $2.76 to $74.90.
The new garbage and water/wastewater rates take effect July 1, the start of the city’s fiscal year.
Fuel surcharges remain in place
The garbage contract retains a fuel surcharge clause allowing Republic to add a temporary fee when diesel prices exceed $4 per gallon, based on the U.S. Department of Energy index.
Eldridge noted the company recently used this provision, adding about $0.55 per toter citywide—about $1,800 in total for one month.
The city’s solid waste fund has enough surplus to absorb these extra costs without immediately passing them on to customers, Eldridge said.
Staff will have time to reassess costs if high fuel prices continue.
Contact Don Reid, dReid@USATodayCo.Com
This article originally appeared on Coldwater Daily Reporter: Coldwater garbage rates go down as water, wastewater increase
Reporting by Don Reid, Coldwater Daily Reporter / Coldwater Daily Reporter
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By Don Reid, Coldwater Daily Reporter | USA TODAY Network
