St. Marys adopts partial cost-recovery model for non-residential recycling services

By Galen Simmons

Some commercial, industrial and institutional (IC&I) properties in St. Marys will begin paying a portion of the costs associated with curbside recycling collection after council endorsed a new partial cost-recovery model at its June 9 meeting.

Council approved what staff referred to as option 2D, a partial cost-recovery approach that excludes downtown-core properties, following a lengthy review of how the town should respond to changes in Ontario’s producer-responsibility recycling system.

“Commercial, industrial and institutional properties are not eligible for funded recycling services (under the new producer-responsible model),” St. Marys manager of environmental services Dave Blake told council. “What that means is it results in a cost being absorbed by the town.

“Council previously reviewed the issue in 2025 and asked staff to return with more information. Since that time, we’ve worked with Bluewater Recycling to better understand which properties were affected, identified some that were previously listed but have now since been corrected, how services were going to be delivered and the long-term cost implications for continued IC&I services.”

Under the province’s new framework, responsibility for residential recycling collection shifted from municipalities to producer organizations on Jan. 1. While residential recycling remains funded through the program, many IC&I properties are no longer eligible, leaving municipalities responsible for covering the cost of those recycling services if they continue to be provided.

According to Blake’s report to council, approximately 87 IC&I properties in St. Marys currently receive curbside recycling collection but are not covered under the provincial funding model.

“We’ve confirmed that continuing to provide recycling services to these properties does create financial pressure, with costs set to double for 2027,” Blake said.

Staff considered a range of options, from absorbing all costs through the town’s waste-management budget to discontinuing municipal recycling service altogether for affected properties. The option ultimately endorsed by council seeks to recover some costs while maintaining recycling services for businesses and organizations.

Under option 2D, properties receiving more recycling-bin service than waste-bin service will be charged for the additional recycling bins. For example, a business with one waste bin and four recycling bins would pay for the three additional recycling bins. Downtown-core properties are exempt from the additional charges because of space limitations and collection challenges that make alternative service arrangements difficult.

The report notes the downtown collection area presents unique operational challenges, including narrow laneways, limited access and insufficient space for larger front-end-loading containers commonly used in commercial waste collection.

Beginning in 2027, Bluewater Recycling Association will charge $160 per recycling bin annually for non-eligible properties. Under the approved option, 37 IC&I properties and 84 recycling bins will become cost recoverable, while the town will continue absorbing an estimated $19,520 annually in remnant recycling costs.

Had council chosen to absorb all costs, the annual expense to the town was projected to reach nearly $33,000 beginning in 2027.

“I’m not necessarily saying I would do this, but if I was charged for the recycle but I only have half a pail of garbage and a quarter pail of recycle every two weeks, I maybe wouldn’t pay for the recycle at all (if it was the full cost-recovery model),” cautioned Coun. Dave Lucas, who owns a business on the list of 87 IC&I properties affected by the change in recycling systems. “That’s a poor attitude, but it’s going to happen, so then we have to look at what’s the cost to the municipality when that recycling ends up in our landfill as opposed to being picked up and recycled.

“So, I like how you did that with (option) 2D and … I think when people actually see what their bills are, they may say, ‘Oh, I don’t actually need three bins.’ When you see the cost, it’s not actually a huge cost for what’s in there, I don’t think. I like where you’ve landed with 2D.”

Staff recommended option 2D because it balances financial sustainability with service continuity, ensuring businesses benefiting from non-funded recycling services contribute toward the cost while minimizing impacts on downtown properties.

Bluewater Recycling Association has asked municipalities to identify their preferred service-delivery model by June 30 to allow sufficient time for route planning, equipment allocation and program implementation ahead of the 2027 service year.