Ratepayers could save up to $30 per household in waste management fees after Blue Mountains City Council agreed to enter into a new recycling collection contract in 2016.
"This decision by the council is yet another example of our determination to reduce costs and achieve savings in our everyday business," said Blue Mountains mayor Mark Greenhill.
"This initiative could mean a saving of almost $10 million to council over 10 years, with the benefits shared by ratepayers and residents."
But the introduction of a green waste service was likely to cost more, said the mayor.
Council plans to consult the community about interest and willingness to pay for a green bin for garden and food waste.
"I know this is a hot topic for the community and many residents have already expressed a desire for a green bin. However, it is important the community understand that a green bin service will come at a cost," said the mayor.
The management of the city's waste will feature large in 2015 with major projects at the Blaxland waste facility due for completion and the future directions for waste management set in place by the council at its last meeting of 2014.
"Waste management and resource recovery is an important issue for the city and council has been working hard to stay ahead of the game," Clr Greenhill said.
Significant capital works projects are underway at Blaxland, the city's only landfill. An extension of the landfill lining was completed two weeks ahead of schedule. The lining will provide critical environmental protection and management of the liquid draining from the waste material into the landfill.
Installation of the landfill gas capture system is currently underway with completion expected in February. Capturing landfill gas will reduce odour and emissions.
"The completion of the landfill gas capture system will be a significant environmental outcome for the city," said the mayor.
Works are also continuing to upgrade the gatehouse and improve recycling services.
