A special infrastructure services committee was held Jan. 10 to bring forward a new model addressing the financial impact of zero waste initiatives and a potential closure of the Sechelt landfill.
Should the landfill close by 2024, the model predicted the Sunshine Coast Regional District (SCRD) would be $4.9 million in the red. Extending the life of the landfill to 2031 could bring that number as high as $17.3 million.
The SCRD is optimistic that the amount of waste being diverted from the dump can be increased by 4,980 tonnes by 2016, a step towards zero waste goals. This would represent an increase in waste diversion from 50 per cent to 69 per cent.
"If we had 100 per cent diversion, zero waste today, we would still have to close the landfill at some point," said Roberts Creek director Donna Shugar, pointing to the importance of finding a way to cover the cost.
Last summer, the SCRD posed a list of questions to a consultant regarding the financial future of the landfill, including how much money needs to be saved in order to close the site and what effect a closure delay could have on the bottom line.
On Tuesday, a detailed financial model came back to help them find their answers. The financial implications of closing the landfill include management for some years to monitor for environmental effects.
Furthermore, increasing diversion affects the amount of revenue generated by the landfill and, like most dumps, tipping fees cover the expense of operation.
Current tipping fees on the Sunshine Coast are $110 per tonne, but as diversion rates have increased, other regional districts such as Metro Vancouver are adopting aggressive rate increases.
From $97 per tonne in 2011, the tipping rate in Metro Vancouver is expected to reach as much as $205 by 2016.
"I have no doubt that tipping fees have a direct effect on what goes into [illegal dumping sites in] the forest," said Elphinstone director Lorne Lewis. "What we should be looking at is how we impact the whole Sunshine Coast. By increasing tipping fees, I believe that you put more stuff in the forest."
Two recommendations for the 2012 budget were made as a result of the model and should be presented as decision packages during budget talks, which have just started.
One option is to increase tipping fees by $15 per tonne starting May 1, the other is to moderate the increase to $10 while redirecting more funds to operations.
The increases would be part of a pattern of rate hikes allowing the SCRD to build up its reserves in preparation for the landfill closure.
Other possible remedies discussed at the meeting included some form of taxation, justified by the interest residents share in the landfill operation. This option could help remedy concerns related to illegal dumping.
"If you wish to add another can, you put your little sticker on and pay $1.50," said West Howe Sound director Lee Turnbull. "We could increase that amount or use that as a pay-as-you-throw kind of model."
The report recommended progressive rate hikes towards 2019 in order to maximize reserve contributions.
