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Why not cut garbage collection to once every 10 days or so? That would cut the cost by about 30%.
A proposal some years ago to charge trash pick-up by weight (pay as you throw) was deemed 'unfair' to big families because larger families have larger garbage needs. Nonetheless, this would provide the right price signal to people about garbage, and encourage them to buy products with less wrapping and encourage recycling. Indeed, empty egg cartons are in deparate need at food pantries to distribute eggs they get in bulk, and given escalating commodity prices, recycled paper and metals are in demand! The bottom line is that garbage pick-up is a service that must be bought and paid-for, but most home owners don't really think about it as being an issue because they often pay one flat rate. Sending the right price signals -- that is, charging by how much people toss away -- can drastically change behavior. Such pricing has worked for long-distance telephone, electricity and water use, and driving -- perhaps garbage costs can be economized if people connected "how much" they tossed with "what they paid"!
Trash is one thing. Some municipalities choose to institute a recycle bin and grass clipping, small twig bin. This is a nice approach if everyone participates properly. One contaminated green or blue bin (in my community) sends that whole load to the dump or individuals are hired to sort through the recycled "mess." This simply results in added costs to the tax payers. If it's not working "dump" the program.
At one time, trash compactors were all the rage. Now you rarely see them. By reducing the volume, the time between pickups cold be increased.
This could also be accomplished by making 2 cans the norm instead of just 1 and picking up every other week.
Moving to every other week pickups for recycling would generate immediate savings.
I am sure there are many great new ideas out there. How much inconvenience and change in our behaviors are we willing to accomodate and at what price?
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