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GREENSBORO — The number crunching began in earnest Tuesday, as the Greensboro City Council debated how to save the city — and residents — money.

After much debate, council members decided to stick with a plan to increase the water rates by 6 percent in January. But they will eliminate the solid waste fee for fiscal year 2009-2010.

Councilman Mike Barber also floated a proposal to dump a limited amount of residential trash at the White Street Landfill. He offered it as a compromise to area residents, who last week protested his recommendation that the landfill be reopened to save money.

The council must adopt next year’s budget by June 30.

The proposed water rate increase is expected to increase bills by $2.40 a month for the average customer.

Councilwoman Trudy Wade pushed for the council to hold off on rate changes this year, possibly by dipping into reserves to cover cost increases.

City staff said using reserves could hurt the city’s bond rating. They suggested that the council delay increasing rates for six months or put off some maintenance projects.

A majority of council members didn’t like those alternatives and chose to go with the original recommendation to raise water rates in January.

But, at the recommendation of Councilman Robbie Perkins, the board decided to temporarily stop charging the solid waste fee included in water bills. The fee pays for disposing items that can’t be dumped down a drain or in the trash, such as household chemicals and batteries.

City Environmental Director Jeryl Covington said the city can afford to forgo the fee next year. That decision will save residents 40 cents a month starting July 1.

The fee changes must be formally adopted as part of the city budget.

On Tuesday, council members also heard that the city would save an estimated $2.9 million a year if it reopened the landfill.

Barber has argued that the city is wasting millions to ship its trash out of the county instead of using the landfill that was closed to household trash in 2006.

Barber asked council members to consider dumping 50,000 tons of trash in the landfill a year, a portion of the 240,000 tons sent through the transfer station annually. Barber said the city could save an estimated $450,000 a year.

Council members did not have a chance to debate the merits of his proposal. Interim City Manager Bob Morgan suggested that the council set aside time to have a full debate of the issue.

The council also will consider setting aside $100,000 in the budget for a day center for homeless residents. Members asked the staff to figure out how to pay for the project.

Contact Amanda Lehmert at 373-7075 or amanda.lehmert@news-record.com