SASKATOON -- The City of Saskatoon is getting some promising news on its efforts to divert waste from the landfill.

The Committee on Environment, Utilities and Corporate Services received a report saying that the contract to process organics as part of a city-wide household collection program will cost a lot less than expected.

"The good news is that it's come in almost 18 per cent under budget which is a $2 million savings per year against what was being projected," Mayor Charlie Clark said.

"And so that's good news for our ability to deliver on that program and continue to expand our waste diversion and to save precious years on the landfill."

The city hopes to have 70 per cent of waste diverted from the landfill by 2023.