A proposed increase in price for screened compost sold by the City of Penticton was approved by council on Monday. Upon reviewing the compost rates with Kelowna, determined to be the only one in the area, it was noted that Penticton’s rate is less than half the cost of other areas. It was found that the revenue to expenditure ration for the compost operation is extremely low at 24 per cent. “The cost of operating the compost facility is $221,000 with annual revenue from selling compost at the new rate of $111,250,” said Mitch Moroziuk, director of development and engineering, of the updated rate which will cover more than half of the cost.
A table of comparison given to council by city staff shows that the rates for Penticton are $34 to $48 less per tonne than Kelowna. The new proposed rates see bulk\wholesale prices rising from $16 a tonne to $24, less than five tonnes jumping from $25 to $30 and bags go up from $3 to $5. GST also would be added onto those prices. The City of Penticton biosolids compost facility sells approximately 3,500 to 4,000 metric tonnes of screened compost a year and staff told council it always sells out. But, Moroziuk said raising the costs could be fine but the risk of pricing themselves out of the market. If the compost is not sold it ends up as garbage at the landfill.
http://www.penticton.ca/city/public_works/compost.asp
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