The measure would create an area outside of the main gate where residents could drop off and pick up salvagable items, without paying a five dollar charge for entering the main area of the facility -- a move that has angered hundreds of Yellowknifers.
City administration presented the plan during a committee meeting earlier this week.
Council voted to shelve the so-called "three-cell system" until at least the spring, but administration plans to present the issue in more detail Monday night.
"We need to support salvaging. It is one of the most effective recycling programs we have. But people will abuse (this) system," said Coun. Alan Woytuik.
He worried dump users would drop off garbage in the salvage area that should otherwise go in the main section of the dump.
Coun. Wendy Bisaro supported the plan because it would still permit salvaging at the dump under the toll system, which city officials say is necessary to cover increasing garbage costs.
"This is a system we should go forward with," she said. "It will still encourage people to salvage and recycle."
Administrators believe the system will prevent injuries at the dump and separate salvagers from heavy equipment.
The $50,000 to $100,000 price tag for the system - which would see city workers move salvageable garbage between three areas - was unpalatable for some councillors.
Council is also expected to discuss the recommendation to impose an entry fee and raise commercial rates at the dump Monday.