New Orleans could save about $13.2 million over 10 years by having Department of Sanitation employees respond to illegal dumping complaints, according to an Oct. 8 letter from the city’s Office of Inspector General.
The estimate compares a potential city-run operation with a similar response by private contractor MDL. The OIG says the city would spend more in the first year to buy equipment but could save more than $1.2 million a year afterward.
What to know
The OIG estimates an in-house response would cost about $9.77 million from 2027 through 2036. A similar contract with MDL would cost about $22.94 million, a projected difference of $13.17 million, or 57%.
The letter is part of an ongoing OIG evaluation of Sanitation’s response to illegal dumping. The OIG says it expects to release the full evaluation in early 2027.
Why did the OIG compare the costs?
Sanitation workers told the OIG that limited resources contributed to a backlog and slow response times. They said the department could handle the work in-house with enough staff and resources.
Sanitation expanded its use of existing contracts with MDL from 2022 through 2025 to provide equipment and operators for illegal dumping response. The contracts were originally intended to help with cleanup after special events, including Mardi Gras.
But MDL was not licensed in Louisiana to haul waste tires. The company removed general debris, while Sanitation staff had to clean sites with illegally dumped tires, including some sites MDL had already visited. The OIG says that led to duplicated work.
The OIG reviewed a sample of 686 illegal dumping complaints from 2025 and found that at least 22% involved illegally dumped tires.
How much did the city spend?
The OIG found that Sanitation paid MDL about $5.51 million from 2023 through 2025 to help with illegal dumping cleanup.
The OIG estimated that an in-house response using comparable equipment and staffing would have cost about $3.56 million over those three years. That would have meant about $1.95 million less in costs, or 35% of what the city paid MDL.
The letter says Sanitation did not use MDL for illegal dumping response in 2026 because of budget constraints.
How did the OIG calculate future savings?
For its 10-year estimate, the OIG compared the cost of a similar MDL contract with a city-run operation using similar equipment and staffing.
The OIG projects that an MDL contract would cost about $22.94 million from 2027 through 2036. It estimates a Sanitation operation would cost about $9.77 million, including equipment purchases, staffing and operating costs.
The city-run option would cost about $418,000 more in the first year, mainly because the city might need to buy equipment. After that, the letter projects savings of more than $1.2 million a year.
What are the limits of the estimate?
City administrators provided the OIG with equipment prices and estimates for operating costs and personnel. The OIG says it did not independently verify those figures.
The analysis also assumes the city would need to buy all the required equipment. The letter says Sanitation may already have some or all of it, which could lower the cost. The OIG says its estimate may also leave out savings from using equipment for other work, such as Mardi Gras cleanup.
What does the OIG recommend?
The OIG recommends that the city consider whether Sanitation can hire enough staff and acquire the resources needed to handle illegal dumping response.
The letter also urges the city’s chief administrative officer and department heads to regularly assess the costs and benefits of hiring contractors to perform city services.
Why it matters
The OIG’s estimate suggests the city could reduce costs by bringing this work in-house, but the projected savings depend on equipment, staffing and cost assumptions. The OIG says its full evaluation of Sanitation’s illegal dumping response is expected in early 2027.
WDSU has reached out to the City of New Orleans and is awaiting a response.
Mayor Moreno responds:
City of New Orleans Communications Director Jonah Gilmore issued the following statement following the release of the OIG’s report:
“Yes, we are aware that bringing illegal dumping remediation services in house could save the City money, and we appreciate the OIG for looking back at spending and practices from previous years. Importantly, since Mayor Moreno took office, no funds have been expended for outsourced illegal dumping remediation services since November 2025.
“The administration is moving forward with a dedicated in-house Illegal Dumping Strike Team, funded through the recent sanitation fee reset approved by the City Council.
“We remain committed to using taxpayer dollars responsibly, improving how the City delivers services and finding more efficient ways to address illegal dumping across New Orleans.”
READ MORE:OIG finds New Orleans could save millions on illegal dumping response
