Overview

The introduction of new waste services has highlighted the need for more information about how waste disposal costs are funded and recovered by Council.

Council provides a range of waste services outlined below to households and the wider community on a full cost-recovery basis and through a user pays system wherever possible.

Council does not generate a profit when recovering waste disposal costs and does not sell any waste material collected to generate a profit. Any profit associated with the recovery or resale of materials is retained by the contracted companies, not Council.

Frequently Asked Questions

1. What does 'full cost recovery' mean?

Full cost recovery means charging enough to cover all costs associated with delivering a service.

Funds recovered cannot be used for other Council activities beyond provision of waste services. If in one year the costs are less than expected, the 'savings' are used to reduce the fees and charges in the following year. Likewise, if the cost is more than the funds collected, the gap is added to the next year's service costs.

2. Why does Council use a 'user pays' system?

The 'user pays' system is considered the fairest approach because the people who use the service, pay for it. It also encourages residents to reduce waste, reuse materials and recycle better. This helps lower costs and reduces the amount of waste sent to landfill.

3. Why are waste service costs increasing?

Waste service costs are rising mainly because of the Victorian Government's Waste Levy — a charge applied to every tonne of waste sent to landfill. This Levy has increased signficantly in recent years to encourage recycling and reduce the use of landfill. Other costs including fuel, transport, facility operations and compliance with Environment Protection Authority (EPA) regulations have also gone up.

Council is mindful of the financial pressures facing our community, and aims to balance providing services with keeping costs fair for all ratepayers.