Municipalities and cities can realize significant benefits by purchasing their own containers directly from the manufacturer rather than relying on a hauler.
Municipalities typically have higher credit ratings than private haulers, allowing for significant savings when financing waste and recycling carts. Additionally, municipalities are exempt from paying state sales tax if they are purchasing items for their own use. With state sales tax rates as high as 9.45%, that can add up to significant savings versus a private hauler that will pass along the cost of sales tax to a municipality.
Choice and Control
By owning the carts, cities and municipalities can choose the quality and brand of cart they want along with color, logos and markings. In addition, cities that own their own carts can easily switch haulers if needed. If the city owns the carts, they retain control of the carts and are able to spare their residents the confusion and inconvenience of retrieving and replacing existing carts with a new hauler’s carts.
Cost of Ownership
Often times when hauling contracts expire, municipalities do not retain ownership of the carts. If contracts are bid out every five years, then the municipality will buy carts twice during a ten year period. Since Toter carts have a life-span of 15 to 20 years or more, municipalities can realize significant cost savings by purchasing carts directly. In some cases, the franchise agreement requires that ownership of the carts is transferred to the municipality at the end of the contract. If this is the case, it is clearly in the best interest of the city to save as much money as possible by purchasing carts at the beginning of the process. Additionally, purchasing quality waste and recycling carts, backed by an industry-leading 12-year body warranty, will reduce the city’s future cart maintenance and replacement cost.
Consider waste and recycling carts as assets and demand quality Toter carts that provide industry-leading service life and low warranty claim rates.