Can Detroit expand trash pickup without charging residents more?

Mayor Mike Duggan is promoting a plan to increase the frequency of trash collection services in line with suburban neighbors without increasing costs for Detroiters. 

Before going on winter recess at the end of November, The City Council delayed a decision on two trash contracts worth $210.7 million in order to collect more feedback from residents on whether Detroit should pay more for weekly pickup of recycling, yard waste, bulk trash and construction debris. Duggan said there’s three options on the table to cover the cost of increased service – hike an annual $240 solid waste fee to $300, increase frequency at no cost to residents by reallocating funds from another part of the budget or leave the service and fees unchanged. 

“This is a lot more service – it’s going to be expensive, no question about it,” Duggan said during a Monday presentation at Redeemer Presbyterian Church in the Woodbridge neighborhood. “We’ve been operating on the cheap for a long time.” 

The proposed contracts would cost the city $40 million each year, Duggan said, an increase of $12 million. In exchange, residents could expect biweekly pickup for recycling, yard and bulk waste happen every week. New weekly collections of curbside construction materials and debris outside vacant lots and side streets would also be provided.

The contracts would ensure the collection of non-hazardous curbside debris from 154,500 vacant properties.

Deputy Chief Financial Officer and Budget Director Steve Watson told the City Council last month that Detroiters have pushed for better trash service during budget forums held over the last several months. Watson said  that the extra cost could be covered without a fee increase thanks to growing revenues and surplus funding.

“One of the recurring themes we heard is a lot of residents wanting illegal dumping and trash removed more frequently,” Watson told council members in November. “There’s really two ways to pay for it, either increasing the fee or provide General Fund tax support. This would be a hybrid approach where we would keep the current base fee but the expansion would be paid for out of our growing budget.”

Irvin Corley, executive policy manager for the Legislative Policy Division, cautioned the council to consider what could happen if the administration decides the expanded contracts put too much strain on the General Fund. Corely warned that over-burdening the budget could put the city on a path toward bankruptcy. He said the city may have to increase fees regardless by 2026.

“I understand many residents may want to have weekly pickup, but it’s going to cost the General Fund,” Corely said in November. “We do not want to go back into doing things that’s eventually going to drain the General Fund without a fee increase … Once the surplus dollars are gone, in my mind, there needs to be a fee increase to make the trash hauling services fiscally sustainable.” 

The $240 solid waste fee, which is charged on summer property tax bills, has not changed in nearly 15 years. Increasing the solid waste fee to $300 would match the rate that Detroiters paid before it was reduced in 2009. Corely said the fee is projected to generate $54 million this year. 

Duggan said he’s able to find money in the budget to cover the cost of expanding service without charging Detroiters more. Increasing pickup of bulk waste and construction debris would save the Department of Public Works roughly $3 million annually, Duggan said.

“I believe we can make some cuts to the budget and we can deliver this service for you,” Duggan said. “I didn’t think it was that difficult of a decision. The City Council refused to act in November; they wanted me to get public input.”

Trash hauling contracts with GFL Environmental and Waste Management of Michigan, Inc. are set to expire next June. Waste Management and Priority Waste, LLC., were the top bidders for five-year contracts that would secure trash service through the end of May 2029. The City Council is expected to vote on the contracts when it returns from recess in January. 

Detroiters have worse service compared to surrounding communities, Duggan said, and the city “ought to be doing more.” He said a weekly pickup schedule is easier for residents to keep track of and will prevent trash from blighting neighborhoods. It would also result in fewer tickets for homeowners and help cleanup vacant lots that are targeted for illegal dumping, Duggan said. 

“It’s not the standard of service in the suburbs,” Duggan said. “They do this every week. Have we progressed to the point as a city that we can demand a higher level of service?” 

An $88 million contract with Priority Waste would cover 93,500 households on the east side and  Southwest Detroit. A $123 million contract with Waste Management would cover 131,000 households on the west side of Detroit. 

Duggan said Priority Waste has contracts with Flint, Saginaw, Westland, Taylor, Dearborn Heights and Bloomfield Township. The Clinton Township-based company has a transfer station in Detroit and agreed to hire residents through the city’s Detroit At Work job training program, the mayor said. 

An $18 million surplus in the Solid Waste Fund would be used until the surplus would be exhausted by 2027, Watson said. The city would slowly increase an allocation of General Fund dollars each year, growing from $8 million in 2024 to $22 million by the end of 2029.

Watson said the city projects Detroit will have $30 million more in revenue than what was budgeted this year, and recurring revenues are expected to grow to $52 million by 2027. 

“In lieu of a fee increase and adding that additional financial burden on residents, we’ll let the residents benefit from our growing taxes and growing economy to deliver on this budget priority,” Watson said in November. “We do recognize it’s a big change, a substantial cost increase.” 

Corely said more than 20 labor contracts are expiring over the next few years that will likely result in salary increases for city employees. 

“We just have a lot of budget pressures that council needs to understand,” Corely told the council in November. “You need to understand what the citizens feel about this. I’m hoping that, as the administration is saying, we’ll continue to have economic vitality going on, but that’s a crystal ball that I cannot read.” 

Council Member Scott Benson said the service increase is “fantastic” and will be well-received by residents, but also expressed concerns about adding pressure to the General Fund. He said increasing costs without a corresponding increase for residents is not sustainable, especially if the financial fortune of the city changes. 

“I haven’t gotten the level of coincidence that we are not sliding down a slippery slope with this contract, just putting pressure on the General Fund is a huge concern for me,” Benson said during the  November meeting.

Residents who spoke during the public comment portion of Duggan’s Monday night presentation in District 6 didn’t have much to say about the trash expansion plan. Some residents who spoke with BridgeDetroit had complaints about the current service. 

Tony Worthy told BridgeDetroit that garbage trucks have missed homes on his mother’s block in the Core City neighborhood at least twice per month. 

John Fakhoury said Waste Management has provided phenomenal service. Fakhoury, who uses a wheelchair, applauded the contractor for taking garbage cans back from the curb to his driveway after he called once to ask for the accommodation. 

Carolyn Bullock, a resident in the Grandmont #1 neighborhood, said abandoned debris and cluttered streets are a major problem in her area. Bullock said repeated calls to the city about blight issues have been ignored. 

Benson and Council President Mary Sheffield have raised concerns from residents about garbage trucks leaking fluids in eastside neighborhoods. 

The Detroit Public Works Department is responsible for monitoring complaints about missed houses or leaking trucks, said Director Ron Brundidge. Detroit can fine companies or terminate the contracts based on performance issues. 

Editor’s note: This story has been updated to reflect that the proposed trash contracts would cost Detroit $40 million per year. The contracts, if approved, would increase costs by $12 million.