Last year when the council's policy and by-law committee voted in favour of adopting its Waste Minimisation and Management Plan 2021 recycling was expected to cost $70 per household a year and food waste collection $40.
"With detailed modelling, we've found recycling processing is higher at facilities near Whanganui, and that affects the calculation, as well as general inflationary cost escalation since last year," Fermor said.
Fermor said council overheads needed to be included in the recent calculations, even though they would not be an extra cost to ratepayers.
"Council overheads for kerbside services would be offset by reductions in other council rates so the net rates increase would actually be lower than the targeted rate," Fermor said.
"The new estimates are in line with what other councils charge – for example, Palmerston North City Council has a targeted rates charge of $2.50 weekly for kerbside recycling."
Fermor said with the new services, households that are new to recycling and composting could potentially save money on rubbish costs, with less going into the rubbish bin.
For the service to be cost-effective, periphery Whanganui suburbs like Fordell and Mowhanau will have to be included, with no opt-out option, Fermor said.
"To keep costs as low as possible, we need to take an 'all-in' approach."
Kerbside recycling would collect plastic grades 1, 2 and 5, as well as glass bottles and jars, aluminium cans, steel cans and tins and paper and cardboard.
Kerbside food waste would collect raw food scraps and also cooked food, dairy, meat, fish and some compostable packaging.
The next step in the council's process is to consult on an amendment to the long-term plan to formally introduce the new services and obtain the required funding.
Public consultation will begin on Tuesday, March 29.
The annual plan sets out how the council's work for the current financial year will be funded and an amendment to the long-term plan is required to include kerbside services for recycling and food waste.
Mayor Hamish McDouall said the new services were vital to address climate change and he encouraged everyone to give feedback.
"While the pandemic and geopolitics are dominating headlines and headspaces, climate change considerations don't wait. We mustn't lose sight of our climate change obligations during these unsettling times."
McDouall said central government's Transforming Recycling plan indicates councils will likely need to provide a kerbside food waste collection in future and Whanganui District Council was "an early adopter".
"We're wanting to get ahead on this because food waste that goes into rubbish bins and ends up at the landfill produces methane, which accelerates climate change," he said.
McDouall said some people in the community compost food scraps and regularly visit the recycling centre, but this has been difficult for others.
"With equitable access to recycling plus a kerbside food waste collection, we can make a real advance towards our climate change objectives.
"Together our community can divert an estimated 4500 tonnes from landfill each year."
Meanwhile, McDouall said he was pleased the council would be able to adhere to a relatively low rates increase.
"For this year's annual plan, I'm pleased to say our rates increase – at 3.9 per cent – is one of the lowest in the region and in line with what we indicated it would be last year. Considering the general rate of inflation is close to 6 per cent we think this is a good result for our community," he said.
"The council is working hard to plot a path ahead in this time of uncertainty and to forge on with core projects that will make our incredible district an even better place to live."