A motion from Lakeshore mayor Tracey Bailey was defeated at County Council 11-3 on Wednesday night.
Bailey had proposed using reserve funds to pay for the green bin program instead of relying on the user fees model, which was approved years ago.
A staff report recommended against using reserves to cover the $185 per household charge, because the county’s main reserve is already at the minimum level it needs for emergencies, and currently earmarked for other priorities.
The County currently has about $16.5 million in its Rate Stabilization Reserve. Staff reported that if the motion had been approved, the balance would drop to roughly $7 million by the end of 2026, and would have fully depleted the reserve in 2027, leaving it in a deficit the following year.
Staff said that by 2029, when all seven municipalities are using the service, council could look at moving the program costs onto the general tax levy instead of a separate household fee.
Councillor and Amherstburg mayor Michael Prue questioned the county's director of financial services and treasurer, Melissa Ryan, on how the reserves would be replenished.
"How would we go about replenishing $20 million to the reserve? We would have to raise taxes," he said. Ryan responded with yes.
"So in the end there's no real savings to the people of the county," Prue added.
Councillor and LaSalle mayor Crystal Meloche said she was surprised the conversation was taking place because council previously approved the user fees model.
"I know in the Town of LaSalle when we first heard about organics we did build a hole into our budget, we did start putting money away for it thinking it was going to be us paying for it,"" she said.
"When things were uploaded to the county, we put that money back and then we shifted our focus somewhere else, but, I guess I'm kind of surprised by some of the comments because I think we've had these conversations here, but again, maybe we just didn't ask enough questions and that's on us."
Councillor and Essex mayor Sherry Bondy said this file isn't over yet.
Council can still change how the green bin program is funded in 2029, including shifting the cost onto the general tax levy once all seven municipalities are fully on the program.
"We're going to be looking at should this be part of the general levy, rather than a user fee, so that decision hasn't been made, yet, but we're going to look at other options in the future," Bondy said.
The program launched in Oct. 2025 in Essex, Lakeshore, LaSalle, and Tecumseh. Those residents will receive their tax bill for the program this June.
Phase 2 will include Amherstburg, Kingsville, and Leamington this fall, with their bill being presented in June 2027.
-With files from AM800's The Kyle Horner Show