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Blue box transition plan could cost Hamilton taxpayers

Blue box transition plan could cost Hamilton taxpayers

The good news is that by the end of 2025 the people who produce paper and plastic packaging will now be responsible for recycling their own stuff. But a report by Hamilton Waste Management staff says there are going to be some additional expenses related to the transition.

The report says that as of April 1, 2025, the City will not be required to fund the Blue Box Program . However, there will be a transition period from April 1 to the end of 2025 where municipalities will be paid to continue the service until the industry-led system is in place. Staff says meeting the needs of industry during the transition period will total well over $4 Million.

Deals of the cost overruns include

  • There is a $3.3 Million shortfall between the compensation being offered by industry for the city to continue to operate the program and what it will cost the city.
  • The city will be required to haul recyclables to an industry-operated site that could be up to 60 minutes distant at a cost of over $800,000.
  • The industry is proposing that the percentage of non-recyclables in the blue boxes be held to 4 percent compared the 12-to-18 percent level now being experienced. Staff have no idea what it would cost to adhere to the 4 percent limit.
  • The offer from industry is about $100,000 short on what it will cost to inform the public of the changes.
  • The industry is asking for a much higher level of record-keeping than is done at present—again at an unknown cost.

Staff are recommending that the city opt out of managing the system during the transition period.It is understood that CMO would then approach the current Blue Box collection contractor to collect Blue Box materials to lessen any impacts the residents may experience during transition.

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