POULSBO — The Poulsbo City Council unanimously approved a contract Oct. 21 transferring municipal garbage collection services to Bainbridge Disposal, a move city officials say will lower rates for residents and businesses while creating a financial adjustment for the city.
The agreement covers garbage, recyclables and compostables collection services.
Bainbridge Disposal already provides recycling and yard waste collection services in Poulsbo, according to city officials.
The council reviewed the final negotiated contract during an Oct. 14 workshop before bringing it forward for approval.
Mayor Edward Stern said the transition would provide substantial rate relief for solid waste customers but would also affect the city’s finances.
He estimated that ending the city-operated collection service would create a budget impact exceeding $1 million.
City officials said the financial consequences would be incorporated into the city’s 2027-28 budget planning.
The change is intended to reduce the cost of garbage collection compared with maintaining the existing city-operated service.
During a separate utility rate hearing, staff presented comparisons showing that projected rates under private collection would be lower than rates anticipated if the city continued operating the service.
The rate analysis included assumptions for a 12% utility tax and a 6% administrative fee associated with outsourced solid waste collection.
Finance staff said the administrative fee would support street maintenance, reflecting the effects of garbage trucks on city roadways, as well as costs associated with contract administration.
The city will retain responsibility for overseeing the agreement with Bainbridge Disposal.
Council members expressed support for the change as a way to address rising utility costs.
The council voted unanimously to approve the comprehensive collection services contract and authorized the mayor to execute it.
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