Allen raises trash contract costs, but residents' bills stay flat for now

Allen residents are not seeing a higher trash-and-recycling bill right now, but the city is already paying more to deliver the same pickup service. City Council approved a 2.98% contract increase with Community Waste Disposal, a move that adds about $130,000 to Allen’s payments over the next year and could shape whether households absorb the cost later in the 2026-27 budget process.

The adjustment took effect inside Allen’s contract payment schedule, not on residents’ monthly utility bills. City documents say Allen pays the monthly residential waste-service fee to CWD, while the amount residents pay is set separately during the annual budget process. That means the immediate hit lands on the city’s operating budget first, with any future change for households likely to come later if officials decide to pass the expense through.

Steve Massey, the city’s director of community services, told council the higher payments would give staff a clearer picture of how much room they have when they begin building the next fiscal year budget. The current contract with CWD runs through May 31, 2029, and allows one annual rate adjustment based on the Consumer Price Index, capped at 5% a year.

The latest increase is tied to inflation, but disposal costs are also climbing. City records say North Texas Municipal Water District landfill charges are pushing costs higher, and another 5.3% increase is affecting disposal expenses, adding $2.07 per ton of waste disposed. That matters because landfill and hauling costs can spread through a city budget long before residents see a line-item change at home.

Under the new schedule, Allen’s monthly payment for a typical residential account rises from $9.75 to $10.06, with extra trash and recycling cart charges also inching up. Commercial accounts will also rise 2.98%. Community Waste Disposal has provided Allen’s residential and commercial waste services since 1988.

Allen’s utility materials say the city has kept its trash and recycling rates among the lowest in nearby cities and among North Texas Municipal Water District member cities. The city also says residents age 65 and older can receive a 20% discount on the base trash and recycle service rate for one trash cart and one recycle cart, plus household hazardous waste services. Still, the broader utility picture in Allen has been moving upward, with rising costs, aging infrastructure and wholesale charges helping drive recent increases across water, sewer and solid waste.