Municipal payment increases and 2019 budget

When MMSW was launched at the beginning of 2016, the program provided payments for recycling services to municipal, First Nation and Regional Waste Authority partners that were based on the experience of other programs as no Saskatchewan data was available. Section 4.4.2 of the Waste Paper and Packaging (WPP) Stewardship Plan required MMSW to begin the work necessary to determine Saskatchewan-specific supply-chain costs.

The required work was directly supported by the MMSW Advisory Committee, which represents urban and rural municipalities, regional waste management authorities, the Saskatchewan Waste Reduction Council and stewards of residential packaging and paper. The Committee, co-chaired by a steward representative and a representative from a municipal association, provided valuable input on this important initiative and helped determine the operational definitions for efficient and effective recycling of WPP in Saskatchewan.

In early 2018, the Committee developed a payment model based on a PwC survey of actual Saskatchewan costs and supply-chain expenses. The new payment model was approved by the MMSW Board of Directors at its June meeting and is effective January 1, 2019.

Under the new model, per household (HH) payments to municipalities increase from $11.75/HH to $15.00/HH for collectors who provide depot services and to $25.00/HH for those that provide curbside services (with or without depots). Service Agreements with municipal partners have been updated.

The increased payments increase the direct material management costs in the 2019 budget by about $4.5 million. At its September 28 meeting, the MMSW board will consider options for 2019 material fee rate increases to finance the budget and stewards will be advised of fee rates in advance of the October 24 Annual Steward Meeting.