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Bay City debates $3 trash fee increase as recycling, privatization options are weighed
Summary
City staff proposed a $3-per-month per-bin sanitation fee that would raise roughly $591,300; commissioners debated eliminating curbside recycling (would save ~ $439,315 but forfeit a $381,000 state grant) and rejected privatization in principle, asking staff for further mitigation options.
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City staff told the Bay City Commission that the sanitation fund faces rising disposal, vehicle and staffing costs and that a proposed $3 monthly increase per household would generate about $591,300 for the 2026–27 budget.
‘‘The $3 a month increase will generate about $591,300,’’ Mr. Martini said during the budget presentation. Staff warned that even with that increase the budget would still use some fund balance and that multi‑year increases may be required if underlying cost pressures continue.
Options considered: staff presented alternatives to reduce or avoid the fee increase. Eliminating the curbside recycling program would save an estimated $439,315 annually (by removing two positions, a vehicle and reducing tipping fees), but staff cautioned the city would forfeit a $381,000 state grant tied to recycling and would face additional hauling/tipping costs. Staff also described a privatization option but said it would likely reduce service levels and could degrade response quality for resident complaints.
Commissioners’ stance: multiple commissioners said they are reluctant to privatize sanitation services and voiced concern about service quality and local jobs. Commissioner Zenady said, "I don't think I want anything to do with privatizing it," and others warned that privatization would reduce the city's ability to respond to snow events, parks support and customer complaints.
Other fiscal context: staff noted the sanitation fund previously contributed roughly $375,000 annually toward a middle‑grounds remediation project; eliminating the sanitation program would shift that cost to the general fund. Commissioners asked staff to model smoothing the multi‑year increases (for example, spreading increases more evenly across years) and to return with further analysis before a final decision.
What’s next: commissioners signaled a preference to retain recycling and not to pursue privatization at this time, and asked staff to present options for mitigating the increase, including reserve smoothing and targeted relief for low‑income households.

