Hastings ratepayers received some relief on soaring rates costs with an extraordinary Council meeting approving a reduction in the proposed waste management and tipping fees.
The amendment came about following the release of a report on the Cairncross Landfill site which estimated the emissions from the landfill will not be over the 25,000 tonne threshold set by the Federal Government Clean Energy Legislation, until 2020.
It was previously estimated that the site would be over the threshold on July 1, 2012 and the waste management fees and charges had been priced to account for the application of carbon pricing to this waste.
Council’s Director of Development and Environment Matt Rogers said the revised estimate on Council’s liability to pay carbon price on the landfill means waste charges will be reduced by $10 per tonne.
“Now that we’ve received this report analysing our landfill operations at the Cairncross site we have been able to assess that, based on current trends and waste composition, the carbon pricing legislation will not affect the landfill until 2020.
“We had applied the maximum increase to the waste fees and charges prior to this report to ensure we would be able to comply with the new legislation on July 1, 2012.
“Residents’ first rates instalment for the 2012/13 financial year will now show that waste charges will be increased by $13 per tonne not $23 as previously advised,” said Mr Rogers.
The revenue from the $13 per tonne increase is being used for the installation of an $800,000 landfill gas capture system at the Cairncross site.
Council approved the installation on the advice that, if the gas capture system was constructed as soon as possible, it could mean the Cairncross site will avoid going over the landfill emissions threshold, therefore eliminating the need for the charge in the future and creating potential to provide Council with carbon credits.
“By implementing a two year period where we charge a $13 per tonne increase to waste service fees, we are creating a user pays system to generate the necessary funds to install the gas capture system and potentially save $30 million in Carbon Pricing payments over 30 years.
“While the numbers might seem a little complicated now, the bottom line is that the charge will be less this year than predicted but, by retaining some increase, we are able to achieve long-term reductions to the cost of managing our landfill sites,” concluded Mr Rogers.
