The City of Germantown is preparing to transition to a new solid waste collection contract with Waste Pro beginning July 1. As part of this process, residents will see an increase in sanitation fees. The Financial Advisory Commission reviewed the proposed rates on March 31 and approved the proposal to be considered by the Board of Mayor and Aldermen as part of the City’s budget process.

This adjustment reflects significant changes in the solid waste industry and ensures the City can continue providing the reliable, high-quality service residents expect. If approved, the new rates will reflect the first substantial increase in sanitation removal rates since July 2016.

Why rates are increasing

Germantown’s current sanitation contract was established in fiscal year 2017, well before the COVID-19 pandemic and the sharp rise in costs that followed. For the past decade, the City has benefited from a below-market agreement that allowed for a high level of service at a lower cost, but that contract is now expiring, and new pricing reflects today’s market conditions. Since 2017, the cost of providing sanitation services has increased significantly, driven by significant increases in labor, fuel, equipment, landfill and recycling processing expenses nationwide. The proposed rate adjustments address years of rising operational costs, increased service demands and the true cost of delivering reliable collection, particularly for more labor-intensive services like backdoor pickup. 

Germantown is not alone in facing these challenges, as communities across the region are experiencing similar increases when contracts are renewed; for example, the Town of Arlington recently saw rates rise by more than 80 percent. Cities that maintain lower costs often do so by offering fewer services.

Proposed new rates

If approved, monthly sanitation fees are expected to change as follows:

These rates are based on current projections and will be finalized as part of the budget approval process.

Sustaining the Services Residents Value

Germantown’s sanitation program delivers a high level of service, shaped in part by the community’s strong participation in recycling and the significant volume of yard waste generated by its dense, mature tree canopy. Approximately 90% of households take part in recycling, and crews regularly collect large amounts of leaves, limbs and seasonal debris, all of which require additional handling and processing. These services play a key role in maintaining a well-maintained community..

Careful financial planning

Sanitation services in Germantown are funded through an enterprise fund, similar to water and sewer, which, as required by the state, must be fully supported by user fees and cannot be subsidized by other City revenues.

Over the past decade, the City has taken a disciplined approach to managing these costs by locking in long-term contract pricing. The upcoming adjustment reflects the need to align rates with current service costs and ensure the long-term sustainability of the program, with modest annual adjustments anticipated in future years.

As part of this process, the City continued its long-standing practice of evaluating all options with each new operations contract, including in-house service delivery, to ensure costs are well managed. Continuing with a contracted service provider remains the most fiscally responsible way to maintain the community’s high service standards.

Support for residents

The City recognizes that fee increases can be challenging. A reduced-rate back-door service program is being considered for households with medically verified needs where no one in the home is able to move carts to the curb. Additional details will be shared as the program is finalized.

Looking ahead

The Board of Mayor and Aldermen is expected to consider the new contract later this spring. If approved, the updated rates would take effect July 1.

Additional information, including frequently asked questions, will be available on the City’s website in the coming weeks.