City of Saskatoon to borrow $3.5M for new garbage bins

The city is set to borrow more than $3 million to pay for new black garbage bins.

After years of discussions, the city is set to roll out its new garbage utility next year — where residents will have a choice between three different sizes of garbage bins and pay a corresponding rate.

On Tuesday, councillors on a city committee voted in favour of letting the city borrow $3.5 million dollars from itself to pay for the new medium and small-sized bins.

Under the borrowing plan, the money will be paid back over the next ten years as garbage switches from a service funded by property tax to a utility bill in 2024.

Despite the fact the city is borrowing its own money, the move will result in an estimated $693,000 in extra costs due to interest, based on the estimated annual repayment rate of $419,300 outlined in a city report.

City administration estimates that anywhere between 25 and 40 per cent of residents will switch to a small or medium-sized waste cart next year.

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Councillor Hilary Gough says since the green organics bin program was launched citywide this year, residents just aren't filling up their large black bins as often.

"It's really about getting waste into the right place ... if we don't change how waste is collected and sorted, it doesn't happen," Gough said.

"I can't put it on a household to just magically get their waste into the right place if they don't have the right bins."

The borrowing plan still requires council approval.

More details are expected this fall about waste utility rates and timelines for when people can expect the new black bins.