The article is focused on empirical analysis of municipal waste management services in the Czech Republic. Authors have identified the following key factors for public utility efficiency and effectiveness: recycling, competition, form of company ownership, the effects of economies of scale, inter-municipal cooperation, distance to landfill and hybrid organization. The aim of the article is to analyse these factors, and to discuss their relationship to cost efficiency and effectiveness with a focus on the impact of municipality size. Waste management expenditure in municipalities is most influenced by the achievement of economies of scale. Additionally, it was found that if a waste collection company is under public ownership, this has a similarly strong impact on expenditure. Another two important factors associated with cost savings and the management of waste collection companies are inter-municipal cooperation and hybrid organization, which are of equal importance.