Last September former bin men Jeremy Help, Christopher Ogier, Robin Help and Kevin Smith were each sentenced to 70 hours' community service for collecting commercial waste on their residential rounds for cash-in-hand payments.
It meant ratepayers were left picking up the tipping fee for business rubbish.
'The Constables of St Peter Port have successfully concluded negotiations with the States of Guernsey over compensation for the waste disposal fees charged to the constables and have agreed the sum of £180,000 plus legal costs in full, which were minimal in the circumstances,' the constables said.
'This money will be returned to St Peter Port rate payers by reducing the 2015 refuse rate.'
The sum will be included in the 2015 Remede, which will be presented to the rate payers at the April parish meeting.
'I am pleased that we have been able to settle this by negotiation and am content that we have negotiated a fair and reasonable settlement for St Peter Port rate payers,' said constable Dennis Le Moignan.
