Advocacy: Multi Family Waste Diversion (MFWD) Fees - Winter 2022

Article from Volume 9, Issue Number 1, 2022

Advocacy: Multi Family Waste Diversion (MFWD) Fees - Winter 2022

By CCI MB Advocacy Committee | Other articles by CCI MB Advocacy Committee | Feature

In our Fall 2021 Newsletter, we raised the issue of waste diversion fees being applied to condo unit owners for corporations with more than seven units in the City of Winnipeg.¹ The good news is that the proposal has been dropped for the 2022 budget. But this is also bad news because the program doesn’t have sustainable funding so that means property tax funding will continue to be used. One way or another we we need to strive to have a cost-effective service with all properties receiving the service paying their fair share.

The proposed fee was to be $44 per unit annually for multi-family (MF) homes, as compared to the existing $66 per household annually for single-family (SF) homes, and would be included on the water bill. It isn’t clear, but it is likely that condo unit owners in corporations of 7 or fewer units have been paying a fee already, perhaps at the $66 amount. As well, we know of at least one condo corporation with both townhomes and apartments, in which the townhome owners are already paying a fee of $66 annually while the apartments are not currently paying a fee.

Equally unclear at this point is the basis for the annual fees of $66 per SF home or the $44 per MF home, especially in light of the City’s consultant report², where section 1.8 for SF homes recommends

“replace the current mix of property taxes and waste diversion fee funding with a new, single fee for all single-family households for Garbage Cart, Recycling Cart, and Leaf & Yard Waste collection services”

and estimates the monthly cost of servicing 240L carts at $14.59 to $17.09 combined for garbage and recycling for 2022-2025 which equates to $175 to $105 annually. Whereas for MF homes, section 1.8 recommends

“Replace the current mix of property taxes and waste diversion fee funding with a new, single fee for all multi-family dwellings for both Garbage and Recycling collection services. Such a fee should be based on a standard service level (e.g. 120 Litre cart collection capacity each week).”

and estimates “equivalent 30-day costs of service for multi-family dwellings are projected to be stable across 2022-2025 (i.e. Between $4.11-$4.21 per dwelling for garbage and $1.55 to $1.73 for recycling).” which equates to $67.92 to $71.28 annually combined for garbage and recycling and a maximum of $20.76 annually for recycling. So it isn’t clear where the $66 and $44 amounts came from.

What follows is a brief chronology as the proposal worked its way through the City of Winnipeg. Not that some abbreviations used below include:

EPC - Executive Policy Committee
MFWD - Multi-Family Waste Diversion
SFWD - Single-Family Waste Diversion
SPC - Standing Policy Committee
WWRME - Water and Waste, Riverbank Management and the Environment

Oct 8th, 2021 SPC WWRME meeting³ - Agenda Item #2: Recommendation 1 - “that the implementation of a mandatory Multi-Family Waste Diversion fee, effective January 1, 2023 of $0.1205 per dwelling unit per day ($44.00 annually) to fund diversion programs, be referred to the 2022 Budget Review Process.”

Oct 28th, 2021 Council meeting⁴ - Agenda item REPORT OF THE STANDING POLICY COMMITTEE ON WATER AND WASTE, RIVERBANK MANAGEMENT AND THE ENVIRONMENT DATED OCTOBER 8, 2021 Item 1.1 “That the implementation of a mandatory Multi-Family Waste Diversion fee, effective January 1, 2023 of $0.1205 per dwelling unit per day ($44.00 annually) to fund diversion programs, be referred to the 2022 Budget Review Process.”

Dec 6th, 2021 SPC WWRME meeting⁵ - Agenda Item #5: “Mandatory Multi-Family Waste Diversion Fee - STANDING COMMITTEE DECISION: The Standing Policy Committee on Water and Waste, Riverbank Management and the Environment received the matter as information.”

While the above notation seems innocuous, the waste diversion fee for MF was dropped as part of the 2022 budget process in agenda item #1 of the 2022 Budget Review: refer page 21 of the Water and Waste Department’s presentation (note that the slide is discussed at the 2:23:06 mark through to the 2:44:18 mark in the recording) on the slide titled Operating Budget Referrals. The slide shows that the waste diversion fee proposal is not part of the 2022 budget. During the dialog one of the Councilors made the comment “those that represent the condominium industry in the City are not pleased with it”. However, this does not mean that it won’t come back another year.

Note, while the City attempted to explain why the MFWD fee should be lower than the SFWD fee - MF properties don’t have access to all services such as leaf and yard waste pickup - there was no justification presented for the actual $66 and $44 amounts nor any obvious recognition that in a condo setting, multiple units often share one blue cart. Without details justifying the amounts, CCI Manitoba is of the opinion that instead of a per dwelling fee, the fee should probably be based on emptying the cart rather than the number of dwellings filling the cart, in which it might make sense for the condo corporation to pay the bill. For example:

A townhouse condo property with 21 units and 7 blue wheelie carts would be charged 21x$44➗7=$132 per blue cart versus $66 for a cart at a single family home;
A apartment condo property with 148 units and 20 blue wheelie carts would be charged 148x$44➗20=$325 per blue cart versus $66 for a cart at a single family home.

All things being equal, it probably costs the City the same amount to empty a SF cart as it does a MF cart.

One other factor to consider is that depending on the condo corporation they may have carts for both garbage and recycling if they are small properties or have big dumpster bins if they are big properties. How does the cost of emptying a dumpster bin on a per unit basis compare with a cart?

CCI Manitoba views this as an issue of inequity, as opposed to a protest against any waste diversion fee for multi-family residences - condo owners should pay their fair share. However, it touches on the overall property tax inequity issue regarding services for single-family versus multi-family homes. As well, in one presentation, City staff admitted as the department transitions to a fee based system for cost recovery, there should be some associated reduction in property taxes. Hopefully, the idea of associated property tax reductions as fees are implemented doesn’t get lost in the process.

CCI Manitoba will continue to monitor this issue and hopefully be able to intercede on behalf of our members. For now, we encourage you to contact your City Councillor to present your views on the matter. With your help, as a valued CCI member, we can collectively advocate on behalf of the condominium communities to ensure fair and equitable treatment. Your City Councillor can be contacted via https://winnipeg.ca/council/contact.stm. As well, we would like to hear from you too, so feel free to send us an email at cci.mb.news@gmail.com.

CCI MB Communications Committee

¹ CCI Manitoba Condominium News and Views, Fall 2021 https://cci-manitoba.ca/sites/default/uploads/files/CCI-MB-Fall-Newsletter-2021-FINAL.pdf
² Solid Waste Program Financial Plan and Utility Rate Model Final Report, Stack’d Consulting 2020-09-10
https://winnipeg.ca/waterandwaste/pdfs/WinnipegSWSFinancialModelReport.pdf
³ City of Winnipeg Water, Waste, Riverbank Management & Environment Committee meeting2021-10-08 http://2021-10-08 https://clkapps.winnipeg.ca/dmis/ViewDoc.asp?DocId=21272&SectionId=&InitUrl=
⁴ City of Winnipeg Council meeting 2021-10-28 https://clkapps.winnipeg.ca/dmis/ViewDoc.asp?DocId=21333&SectionId=&InitUrl=
⁵ City of Winnipeg Water, Waste, Riverbank Management & Environment Committee meeting 2021-12-06 https://clkapps.winnipeg.ca/dmis/ViewDoc.asp?DocId=21447&SectionId=&InitUrl=