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MoreBack to News Headlines
Islanders will face higher garbage collection fees in 2025 if IRAC approves rate hike

Islanders will face higher garbage collection fees in 2025 if IRAC approves rate hike

CBC
Wednesday, January 8, 2025 10:30 AM GMT

Prince Edward Islanders may see an increase in garbage collection fees this year as the Island Waste Management Corporation is asking for permission to raise its rates.

The application is currently before the Island Regulatory and Appeals Commission.

Under the proposed changes, year-round residential rates would increase by around 10 per cent, from $236 to $261 annually. Seasonal cottage owners would see their rates go up by 12 per cent, from $116 to $130.

Commercial business rates would not be affected because their current rates cover IWMC's collection costs. 

In its submission to IRAC, Island Waste Management said the annual residential household rate rose from $205 to $236 between 2015 and 2023, a 15 per cent increase.

Islanders weren't likely to notice that hike, however, because the P.E.I. government gave IWMC millions of dollars to help subsidize its costs so residents didn't have to pay the full fee. 

But if those subsidies end and IRAC approves the application, year-round residents would actually be facing a 27 per cent increase this year.

Karen MacDonald, Island Waste Management's CEO, said the provincial Crown corporation is looking to catch up with cost increases.

"We've seen significant increases in things like wages and fuel and equipment," she said. "We've also seen increases in costs of purchasing equipment, repairing equipment, doing maintenance."

MacDonald added that many of the corporation's buildings and equipment are in need of upgrades, too. Its central compost facility in Brookfield, for example, is now more than 20 years old.

IWMC has also been working to accommodate the Island's growing population.

"We have a greater population, so we have some additional revenue coming in, but at the same time we have more expenses that really offset that additional revenue."

MacDonald said she hopes to hear back about the application in February.

If approved, the new rates for residential customers will appear on their 2025 property tax bills that will be sent out in March. 

Read full story on CBC
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