News release from the City of Fort Wayne:
Mayor Henry turns new garbage contract success into $1 million rate cut for residents
Triple Rewards: Contract Savings, Recycling Revenues, Reduced Trash to Landfill
(July 27, 2011) – Touting the overwhelming success of the new garbage and recycling contract, Mayor Tom Henry today brought the savings directly to residents with plans to lower garbage rates by $1 million dollars – the second rate decrease in less than a year.
“I am sending an ordinance to City Council that will lower rates for Fort Wayne citizens by over a million dollars,” said Tom Henry. “Thanks to the enthusiastic participation of our residents and the hard work of the Public Works department, our new garbage and recycling program will save the City over a million dollars in 2011. During these tough economic times, it’s nice to bring a little relief to Fort Wayne families. This program is a prime example of how our City is doing more with less. We’re using innovative methods to increase our efficiency, reduce costs and maximize savings for residents.”
The success is due to several factors. First, the new recycling contract is projected to generate, at a very minimum, half a million dollars in revenue for the City. This is a result of rapidly growing interest from residents in the new recycling program. Initial estimates pegged recycling participation at 34 percent. In reality, nearly 70 percent of residents have chosen to take part in the program.
Second, increased recycling has reduced the amount of trash going into the landfill, resulting in lower fees for the City. Third, the City projects that it will save over a half a million dollars from the new solid waste and garbage contract as a result of making the bidding process more competitive. Finally, this new program is expected to significantly extend the life of the landfill.
These results were captured from the just-completed review of the first six months of the City’s new garbage and recycling program.
In December of 2010, program savings allowed the City to cut garbage fees by $250,000. In 2011, between the new garbage contract and increased recycling revenues, the City is projecting over a million dollars in savings allowing the Henry administration to again introduce this new fee reduction.
On August 9, Mayor Henry will submit a proposal to the Fort Wayne City Council that will lower rates for residents by $1 million.