WINNIPEG: Winnipeg City Council should kibosh the idea to add an "excess waste charge" on top of existing property tax charges for garbage pick up. The Canadian Taxpayers Federation (CTF) supports a user fee model for trash collection on the condition that it replaces the current property tax supported system.

Under the current free-government system, waste collection costs are buried in the tax bill. Businesses and higher valued homes cross-subsidize apartment dwellers and other residences by paying a larger portion of property taxes for the same waste collection service.

"The free-government system of trash collection is patently unfair to businesses and homeowners who are expected to pay a premium with no increase in service," remarked Vrsnik. "Property tax hikes from scaling assessments will only compound the problem for businesses and higher valued homes that are expected to bear the lions share of garbage collection costs. Furthermore, cross subsidization discourages individuals who benefit from the system to reduce, reuse and recycle waste."

The CTF supports a user fee option of waste collection as a substitute for the inequity built into the current property tax supported model.

"Like other user fees charged for hydro, natural gas and water, garbage collection should be also organized by the principle of 'user pays,' or in this case, the polluter pays," added Vrsnik.

The advantages of the user pay system replacing the free-government system are:

• Waste Minimization: Provides incentives to reduce, reuse and recycle waste;
  
• Property Tax Reduction: Property taxes would fall by four percent;
  
• Equity: Reinforces the principle of 'polluter pays;'
  
• Competition: Private contractors could compete against the city for curbside trash collection services; and
  
• Economic Sustainability: greater waste reduction creates cost savings to waste collection system.

Mayor Murray's covenant with Winnipeg homeowners to cut property taxes by ten-percent did not include any extra surcharges on garbage collection. By winding down the free-government system of trash collection, City Council would save $15 million in property taxes, or four percent for an average property homeowner. City Council should extend Murray's ten-percent tax cut by another four percent and say yes to garbage user fees.