A city report said breaking up Winnipeg's garbage and recycling contracts into smaller pieces could cost taxpayers more.

Emterra currently does residential collection in most of the city, with its contract expiring in 2017.

In February, city council directed administration to issue bids in Winnipeg's four contract areas.

Councillors Ross Eadie and Jeff Browaty pushed to have more companies bid in smaller zones with staggered contract dates. The goal was to increase competition, improve service, and prevent a city-wide shutdown of garbage collection.

But the new report said the city should be divided into two areas, not more. It said more staff could be required to administer and enforce additional contracts. More service providers could also drive up program costs because of duplication of infrastructure, offices, and staff.

It also claims multiple contracts with multiple end dates could add to communication costs and confuse homeowners.

The report will be discussed at next week's water and waste committee meeting.