Property owners could pay a $57 service fee to cover the cost of running the new green bin program. (CBC)

Ottawa homeowners may see a new fee for green bin collection on their property tax bills next year.

The city's planning and environment committee, which released its 2010 budget estimates Tuesday, is proposing that property owners pay a $57 service fee to cover the cost of setting up and running the new composting program.

The city decided to bring in the green bin composting program to cut down on the amount of waste going to landfill. Residents began receiving green bins this fall and collection is scheduled to begin in January.

Coun. Peter Hume, chair of the city's planning and environment committee, said the service fee is a fair way to ensure that residents who use the green bin service pay for it.

"We could have thrown [the cost] on the general tax base and had it disappear with all the other taxes … But we didn't think it was fair and equitable for everyone because there are 7,000 rural residents who are not going to receive the service."

'You don't want to penalize those who produce less waste'

Rural residents who won't have green bin service will likely see their garbage fees drop by $11 a year.

But John Bennett, executive director of the Sierra Club of Canada, thinks that's sending the wrong message.

"We're strong supporters of … any system [where] the more waste you produce, the more you pay. But you don't want to penalize those who produce less waste."

The proposed fee still has to be approved by city council.

City officials said if residents make good use of their green bins, eventually there could be a payoff on their tax bills. It was suggested that the fees for regular garbage collection could drop in coming years, as less waste is sent to landfill.