In a vote Monday, city council agreed to a $6.50 monthly fee per household to implement the green cart recycling program.
Five years ago, the City of Calgary announced objectives to reduce the amount of material being sent to city landfills.
On Monday, council met to discuss the actual cost of the latest phase of that project.
The city began with a black and a blue cart program to separate garbage from recyclable materials such as paper and plastics, glass and food cans.
In 2012, the city launched a green cart pilot project in four Calgary neighbourhoods, with residents throwing their organic waste into a third, green bin.
Work began in 2015 on a composting facility in hopes that less land would be needed to be used to collect household garbage.
The green cart program is expected to launch city-wide in Fall of 2017.