The same entity runs the landfill and the recycling program. It's done to lessen the rate at which waste goes into the landfill, so landfill tipping fees are used to fund the recycling. They don't particularly see the increased fees as an income stream, but they would be a consequence of not accepting recycling anymore. I guess the motivation is that as long as the costs are low, the recycling program reduces capital expenditure on the landfill.