Opting out of kerbside collection & targeted rate

We propose allowing multi-unit residential developments that use an approved alternative to Council’s three-bin kerbside collection service, to not pay the Waste Minimisation Targeted Rate.

How it works now

Our three-bin kerbside collection provides a door-to-door waste service for residents. However, we’re aware this service doesn’t work for large, multi-unit residential developments, where space to store wheelie bins and have them collected is limited.

At present, properties may choose not to receive wheelie bins. However, all developed properties pay for our kerbside collection service, whether they use it or not.  

• They pay for the kerbside collection and processing of recycling and organics (yellow and green bins) through the Waste Minimisation Targeted Rate. This rate is set at $196.45 per occupied unit in 2021/22.
• They pay for the kerbside collection and disposal of rubbish (red bin) through the general rate, which is based on the capital value of each property.

Our proposed change

Some multi-unit residential developments may choose to use a commercial recycling, organics and rubbish collection instead of our kerbside service. Residential developments using an approved alternative service will not pay the Targeted Rate, if they:

• Complete a waste management plan that meets the objectives of our Waste Minimisation and Management Plan; and
• Demonstrate the use of an equivalent three-bin (rubbish, recycling and organics) service through a private contractor. The service must meet the objectives of our Waste Minimisation and Management Plan.

Residential developments that opt-out of our service won’t have to pay the Targeted Rate. However, they will continue funding Council’s other waste management activities, including the kerbside collection and disposal of rubbish (red bin), as that is part of the general rate, based on capital value.

For 2022/23 a new rates remission will be inserted into Council’s Rates Remission Policy to implement the opt-out from the Targeted Rate. The proposed addition to the Rates Remission Policy is:

Remission 9:  Wheelie bin service reduction

Objective

To provide rates relief from the Waste Minimisation Targeted Rate for rating units within multi-unit residential developments where the rating unit has opted out of receiving the 3-bin kerbside collection service. 

Conditions and criteria

This rates remission applies where a rating unit within a multi-unit residential development has, with the approval of Council, opted out of the 3-bin kerbside collection service. Note that opt-out will be approved only where alternative arrangements are made for collection of all waste streams, and Council considers those arrangements provide an appropriately equivalent service.

Where the opt-out applies for the whole year, the remission will be equal to the Waste Minimisation targeted rate. 

Where the opt-out applies for part of the year the Council may, at its discretion, grant a remission calculated based on the proportion of the year to which the opt out applies.

Reasons for the change

As we experience greater urbanisation and growth, we recognise that the kerbside service we provide is not always the best solution. We want to be flexible by allowing alternative, more suitable, waste collection systems. By allowing residential properties using a private service to avoid paying the Targeted Rate, they would only pay for the recycling and organics services they use.

Properties that choose to opt-out would still pay for the cost of other waste management activities through the general rate which covers:

• Kerbside collection and disposal of rubbish (red bin).
• Public transfer stations and EcoDrop recycling centres.
• Waste education programmes.
• Landfill aftercare, including monitoring closed landfills.

In November 2021 public consultation about the option to opt-out of the kerbside service showed strong support for the proposal (96 generally supported, 12 generally opposed).

Alternative options considered

Opt-out of all waste charges

An alternative option considered was to move the funding of kerbside collection and disposal of rubbish (red bin) to the Targeted Rate. This would mean that a resident that has an alternative three-bin service could opt out of paying for Council’s costs associated with all three bins.  This would increase the saving per property for those opting out of the Targeted Rate by transferring the cost to all other properties.

Moving the funding of kerbside collection and disposal of rubbish from a capital value-based general rate to the targeted rate which is a fixed charge on each occupied unit would also cause a redistribution of rates from higher-value properties to lower-value properties, which are predominantly low-income households. This would be an unintended consequence of this option.

We will continue to look for ways to allow residents with alternative three-bin services to further reduce their rates, without causing a large change in the way rates are shared across ratepayers.

For now, we propose sharing the cost of the rubbish (red bin) collection and disposal service across all rateable properties, based on capital value.

Do not allow opt-out from the Waste Minimisation Targeted Rate

Council considered not allowing opt-out from the Waste Minimisation Targeted Rate, which is the status quo. However, Council considers that this is no longer a fair approach for large multi-unit residential developments that have arranged an approved alternative service.