Christiansburg has begun discussion on the privatization of the town’s garbage service.
A Tuesday night’s regularly scheduled town council meeting, members agreed to ask for bids from private companies on what the funding difference might be.
The town currently has $1,705,999 in the budget for solid waste in FY 2018-19. This includes $51,000 in capital and $1,654,999 in operating.
According to a recent study by the National Solid Waste Management Association, the privatization of waste services generates significant cost savings, especially for budget-stretched localities.
The numbers show the savings typically range from 20-40 percent. In addition, the localities no longer have to grapple with rising capital costs associated with trucks and other equipment. In many cases, those costs put a major drain on municipalities’ budgets.
Privatization is not anything new in places like New York City, Philadelphia and Phoenix. Blacksburg currently uses a private company for its disposal service.
The idea is not new for Christiansburg. Earlier this year, the town agreed to a new recycling service that uses a private company. The budget lists $313,560 for the recycling service.
Town spokesperson Melissa Demmitt said the town decided to put out a request for proposals for curbside recycling service to analyze potential costs.
“In the end, it made financial sense to go with a contractor, especially since the town does not currently own the trucks—or have the staff—to handle curbside recycling. It would have cost the town more to invest in that capital,” she said.
The waste idea was first broached by Councilman Henry Showalter who is a member of the town’s Water, Sewer and Waste Committee.
“I think we have to consider the idea,” he said.
The change could also keep down individual costs for residents. In the past five years, the town has seen a rising cost for disposal services.
Earlier this year, Christiansburg leaders increased rates associated with waste disposal. The garbage rate increased $5 from $17 to $22 for curbside recycling that began July 1.
Several council members expressed concern over the increase, stating that it could drastically affect many residents like seniors and others on a fixed income.
Council agreed unanimously to put the privatization measure out to bid.
“Once we receive those bids back, we can discuss the matter further,” Councilman Brad Stipes said.
Demmitt said staff are in the very preliminary stages of this discussion and will study other localities before making a final decision.
