<esri:ArcGISDynamicMapServiceLayer ID="Waste Reduction" x:Name="layerWASTE" Visible="False" ProxyURL="../proxy.ashx" Url="http://www.regionaldistrict.com/rdcoags/rest/services/GIS_App_WASTE/MapServer" InitializationFailed="Layer_InitializationFailed" DisableClientCaching="True"/>
I don't think giving you the URL will help because I can see that it works fine directly from the URL (thanks for the test page).