FLINT (WWJ/AP) – Flint’s emergency financial manager says he’s outsourcing the city’s garbage collection services.

Ed Kurtz made the announcement on Wednesday, saying the move will save the city $600,000 in the first year.

READ MORE: MRLA Offering Free Food Safety Classes for Kids

Kurtz said he expects a “pretty seamless transition” from collection by municipal workers to the contract with Republic Services. He said Republic will start work March 4 under a $4 million contract.

READ MORE: Whitmer: $32M Investment To Recruit, Retain Police Officers

The change also will restore curbside recycling service, which ended in 2001. Recycling collection will happen every other week and is expected to start in about three months. Recycling bins will be provided by Republic once the recycling program is rolled out, The Flint Journal reported.

The city has 24 waste collection workers, who can get severance pay if they don’t sue. Kurtz said eligible workers will receive $500 for each year of service, up to a maximum of $10,000. The employees will also receive hiring preference with Republic, company officials said.

MORE NEWS: Deputies Find Human Remains In Mid-Michigan Soybean Field

TM and © Copyright 2013 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2013 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.