Ypsilanti Township can save around $623,000 with a new five-year waste collection contract approved with Waste Management.
As of August 31, the budget allocated for trash collection was $7.3 for each home, $1.87 for recycling and $1.93 yard waste each, which was dropped to $6.37 per home for trash, $1.87 per home for recycling and $1.93 per home for yard waste by 1st Sep.
In 2015, the rates will increase by 1.25 percent and will increase by 2.25 percent on every year till 2019. The township will be paying $6.89 only by that time.
The township has a strong working relationship with Waste Management, which has been consistent for the time period they have been used. Residents do a good job and they’re responsive to times when someone might forget to put something out, for example, said, Jeff Allen, director, residential services, township.
In addition, the company has helped the township clear large loads of trash from homes. The township funds its garbage collection with a solid waste/environmental services millage of 2.155 mills gaining an annual income of around $2.3 million.
The millage rate will not be lowered because the township has been dipping into savings to cover the environmental services budget. That fund has been running in deficit for the past few years from prior years’ fund balances. This will just lessen the fund balance deficit. There are other things in the millage. A costly one is brush chipping trucks and equipment, added Allen.
By 2015, Waste Management will provide 96-gallon cans instead of 32-gallon cans to residents on a rental basis for $2 per month.
The fall in price may be due to the competition arising as well as large customer base with a population of 53,000 in the township.
Recently, city of Ypsilanti dropped waste management as its provider announcing $1 million saving by switching to Republic. While the township is only saving $623,000 compared to the $1 million of the city, the township was already paying far less than the city and had less saving to be found.
Under the new contracts, the township will pay 11 cents less per home than the city.
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