At its June 15, 2016 meeting, the WDO Board set the 2016 blue box funding to municipalities at $121.5 M, a 6% increase over the 2015 funding obligation.
The WDO Board adjusted the 2014 reported gross costs ($337.7 M) by adding the value of the CNA/OCNA in-kind lineage that was used by municipalities to advertise the blue box program ($2.3 M) and the value of corrections to previous Datacall submissions as a result of municipal audits completed by WDO ($128,934) and deducting the three-year rolling average revenue ($88.7 M) to yield the net system cost ($251.5).
Stewardship Ontario’s share of the net system cost was then adjusted to:
• Apply cost containment by deducting the amount identified by the group of consultants retained to develop a new cost containment model ($6.2 M);
• Remove the net cost of managing non-obligated material in the municipal blue box system by deducting the amount identified by the consultant ($109,543); and
• Add costs to reflect changes in the nature of packaging material in the blue box system ($2.1 M);
• To yield $121.5 M in steward funding to municipalities in 2016.
The WDO Board also:
• Allocated $4.2 M of the 2016 steward funding to the Continuous Improvement Fund (CIF) with the remaining amount to be disbursed by Stewardship Ontario as quarterly payments to municipalities;
• Directed WDO staff to:
o Review and improve the data sources used in the new cost containment model;
o Develop more precise Datacall instructions to municipalities concerning reporting of costs associated with non-obligated materials; and
• Approved revised guidelines to administer the CNA/OCNA in-kind program