2. GREEN BIN RURAL RESIDENTIAL GRANT PROGRAM

PROGRAMME DE SUBVENTION DES BACS VERTS EN MILIEU RÉSIDENTIEL RURAL

agricultural and rural affairs committee recommendation as amended

That Council approve that a grant equivalent to the taxes paid by an average home for costs of the Source Separated Organics Program be provided for those homes in the rural areas that can not participate in the Source Separated Organics Program.

Planning and environment Committee recommendation as amended

That Council reject that a grant equivalent to the taxes paid by an average home for costs of the Source Separated Organics Program be provided for those homes in the rural areas that can not participate in the Source Separated Organics Program.

Recommandation modifiÉe du Comité de l’agriculture et des questions rurales

Que le Conseil approuve qu’une subvention équivalente aux taxes payées par un ménage moyen pour les coûts du Programme des déchets organiques séparés à la source soit versée aux ménages des secteurs ruraux qui ne peuvent pas participer audit programme.

Recommandation modifiÉe du Comité de l’urbanisme et de l’environnement

Que le Conseil rejette qu’une subvention équivalente aux taxes payées par un ménage moyen pour les coûts du Programme des déchets organiques séparés à la source soit versée aux ménages des secteurs ruraux qui ne peuvent pas participer audit programme.

Documentation

1. City Treasurer’s report dated 22 October 2008 (ACS2008-CMR-FIN-0044).

Report to/Rapport au :

Agriculture and Rural Affairs Committee

Comité de l'agriculture et des questions rurales

and / et

Planning and Environment Committee

Comité de l'urbanisme et de l'environnement

and Council / et au Conseil

22 October 2008 / le 22 octobre 2008

Submitted by/Soumis par :

Marian Simulik, City Treasurer/Trésorière municipale

Contact Person/Personne ressource: Albert Shamess, Director/Directeur

Solid Waste Services/Services de geston des déchets solides

(613) 580-2424 x25873, Albert.Shamess@ottawa.ca

City Wide/à l'échelle de la ville

Ref N°: ACS2008-CMR-FIN-0044

SUBJECT:	GREEN BIN RURAL RESIDENTIAL GRANT PROGRAM
OBJET :	PROGRAMME DE SUBVENTION DES BACS VERTS EN MILIEU RÉSIDENTIEL RURAL

REPORT RECOMMENDATION

That the Agriculture and Rural Affairs Committee and the Planning and Environment Committee recommend that Council consider that a grant equivalent to the taxes paid by an average home for costs of the Source Separated Organics Program be provided for those homes in the rural areas that can not participate in the Source Separated Organics Program.

RECOMMANDATION DU RAPPORT

Que le Comité de l’agriculture et des affaires rurales ainsi que le Comité de l’urbanisme et de l’environnement recommandent au Conseil considère qu’une subvention équivalente aux taxes payées par un ménage moyen pour les coûts du Programme des déchets organiques séparés à la source soit versée aux ménages des secteurs ruraux qui ne peuvent pas participer audit programme.

BACKGROUND

At the June 11, 2008 Council meeting the following motion was approved:

That staff prepare a report regarding the allocation of the funding of the Source Separated Organics Program for consideration at Planning and Environment Committee and Agriculture and Rural Affairs Committee and Council.

The issue that precipitated the debate at Council was whether the Organics Program should be paid for from a user fee or from taxation as a function of assessment. When Council debated this issue in 2005 a hybrid model was adopted wherein garbage collection and disposal would be funded from a flat fee from residential and multi-residential properties and diversion would be funded from the tax base. The Organics Program is a diversion initiative; therefore, it is to be funded from taxation.

DISCUSSION

The Organics Program is being rolled out in 2009 for residences that have curbside pickup, but a number of households in the rural area, outside the villages and estate subdivisions, will not be offered this service as it is not cost effective. The cost of expanding service to the remaining rural area would be $17.6 million over the 3 years of the contract. The full year cost of the Organics Program, without this rural component, will increase the taxes on an average home by $36. With this rural component the increase in taxation would be $51. As the cost of including the rural areas outside the villages and estate subdivisions is considered to not be cost effective, a more modest proposal has been developed in the form of a grant program to offset the costs of the program for rural residents who will not receive this service.

Staff met with the Councillors from the areas with homes that cannot participate in the program to review the impact of the organics program on an average home. Depending on whether the program is funded from taxation or user fees the impact in 2009 (part year implementation only) of the Organics Program are as follows:

Average Home valued at $276,000 with curbside pickup	2009 Source of Funding for the Organics Program
	100% taxation	75% taxation 25% user fees	50% taxation, 50% user fees	100% user fee
Tax	$12	$9	$6	$0
User Fee	0	4	9	18
Total	12	13	15	18

In 2010, and subsequent years, the organics program will operate for a full year therefore the cost in that year for an average home, depending on whether funded from taxation or user fees, is as follows:

Average Home valued at $276,000 with curbside pickup	2010 Source of Funding for the Organics Program
	100% taxation	75% taxation 25% user fees	50% taxation, 50% user fees		100% user fee
Tax	$36	$27		$19		$0
User Fee	0	13.5		27		54
Total	36	40.5		46		54

The cost of the program for each household that participates increases as the funding source moves from the tax base to a user fee, as those properties that are participating pay an increasing share of the program costs and those properties (primarily commercial) that are not participating pay less taxation.

Council has already adopted that diversion will be funded from the tax base, as this is of benefit to all residents. Under the Municipal Act, Council has the authority to provide grants to residents for any purpose; therefore, Council can consider whether residences in the area that cannot participate be given a grant equivalent to the increased taxes for the average home in 2009 ($12) and subsequent years until 2012 ($36 per year).

The grant would be limited to the taxes paid on an average home regardless of assessed value, reflecting the fact that diverting waste from the landfills will extend the life of the landfill thereby deferring the cost of a replacement which is a benefit to all residents even if they can not participate in the program.

CONSULTATION

The Councillors from Wards 19,20, 21 and 5 were consulted.

FINANCIAL IMPLICATIONS

The cost of the Green Bin Rural Residential Grant Program will be added to the 2009 budget ($90,000) and increased by $187,000 in 2010. The grant will be maintained until 2012 which is the end of the current contract.

DISPOSITION

Upon approval of this report, Financial Services will arrange for the implementation of the Green Bin Rural Residential Grant Program.