Sharon Fleming Manager, Business Systems and Revenue Waste Diversion Sharon Fleming Manager, Business Systems and Revenue Rental Housing Advisory Committee Meeting June 13, 2011

Billing System Volume- based Solid Waste rates and how it relates to the Getting to 70% Diversion plan Objectives: Funds our diversion programs Provides diversion incentive Encourages behaviour changes In June 2007 Toronto City Council adopted the recommendation in Executive Committee report to adopt a series of new waste diversion initiatives to achieve 70% diversion by 2010 A volume-based solid waste rate system was implemented The cost of the solid waste management program would be moved from the broad property tax base and credited to SWM customers in the form of a rebate against the rates charged on the volume based bill The revenue generated would cover the SWM operating budget plus the additional amount to implement initiatives to achieve the 70% diversion goal Fees collected from residential customers would depend on the volume of waste they generated, the greater the volume of waste, the greater the fee Allows customers to easily identify excess waste volume (above the base rate) and see immediate financial savings for their waste diversion efforts

Fees and Billing Overview / Update Front End Rate Structure Improvement A new rate structure was implemented in July 2010 Moved from a bin equivalent rate to a linear cubic yard charge Advantages: Simplified billing, clear impact of diversion, leaves room for more savings through diversion In 2010, a new rate structure was introduced for multi-residential buildings which addressed the concerns of the City’s costumers and the challenges associated with the previous billing system and rate structure The new system allows customers to see immediate financial savings for their waste diversion efforts and more easily identify excess waste volume (above the base rate) to readily attain financial savings and plan for increased diversion efforts As a result, the majority of our customers saw an immediate decrease in their bills

Fees and Billing Overview / Update Then NOW Annual Waste Fee (per/unit/year) 2009 Rates Small Bin Equivalent $150.00 Medium Bin Equivalent $175.00 Large Bin Equivalent $205.00 Extra Large Bin Equivalent $235.00 Excess fee: Uncompacted (per yd3) $9.56 Excess fee: Compacted (per yd3) $28.67 Solid Waste Rebate $157.00 Annual Waste Fee (per/unit/year) 2010 Rates 2011 Rates Base Rate $175 191.30 Excess fee: Uncompacted (per yd3) $12.81 $13.27 Excess fee: Compacted (per yd3) $25.63 $26.55 Solid Waste Rebate $175.00 $185.00 -Effective March 1, City Council approved a 3.6% increase to solid waste fees (annualized 3%) to all residential solid waste customers -This is the 1st rate increase since the inception of the rate structure program in 2009

Fees and Billing Overview / Update What’s included? ¾ The base rate fee includes unlimited collection and processing of recycling, yard waste, organics, bulky items, electronic, white goods/metal items and household hazardous waste at no additional charge A base volume which has been increased from 1.704 cubic yards uncompacted to 1.917 cubic yards , which is equivalent to an increase of 2/3bag biweekly per household to ¾ of a bag And don’t forget All Solid Waste Management fees are HST exempt HST

Achieving our diversion goals DIVERT MORE Comparison – Tale of three 100 unit buildings pay le$$

Comparison of 100 Unit Buildings (Compacted) Total Waste 20 y3 Garbage 16 y3 6 y3 2 y3 Recycling & Organics 4 y3 14 y3 18 y3 Annual Cost $20,235.47 $6,391.54 $853.97 Cost per Unit $202.35 $63.9 $8.54 -These are examples of three 100 unit buildings currently on City collection Building 1 is an example of a building that does not recycle at a high rate and still put out a high waste volume. 75% of their total waste output is being dumped in the garbage stream and consequently their garbage cost is relatively high at over $20,000 annually Building 2, has manage to divert 70% of the garbage they set out, and there is a drastic difference in their annual cost which is less than $6,500 annually, almost $14,000 less than the 1st building, however their volume set out can be improved Building 3 has not only managed to divert more than 70% of their waste, they have also eliminate most of their excess volume and as a result their annual cost is a mere $854, $8.54/unit

2010 Waste Diversion

Online Calculator www.toronto.ca/garbage/multi/calculator.htm -our online calculator is available through the City of Toronto website to assist with estimating your bills, manage your costs, and assist with diversion and financial goals www.toronto.ca/garbage/multi/calculator.htm

Contact Us: Solid Waste Management Services Sharon Fleming Manager, Business Systems and Revenue Policy and Planning (416)397-0207 sfleming@toronto.ca