By CARA LORELLO
Staff Reporter
A sharp drop in the price of recycled goods will likely leave a bigger than expected hole in Medical Lake's garbage fund's revenue this fiscal year, city officials told the City Council on Feb. 17.
While the city has never relied largely on money from recycling to support its fund, the last few month-to-month revenues showed totals way less than as recent as last July.
“You're really seeing the prices drop for recycling,” City Administrator Doug Ross said.
Councilwoman Brenda Redell asked if the drop was indicative of people recycling less.
“It's the price that's gone, not so much a change in volume,” Ross replied.
The recycling returns for the city in July 2008 topped out at $4,000, and on average Ross said the city sees anywhere from $2,500 to $2,800 a month in recycling revenue. But when November rolled around, the number dropped to $213.06, and has hovered around that amount through January, which showed recycling revenues of $259.
The original expectation for recycling revenue this year was supposed to be around $30,000, but unless things pick up, Ross said, the drop could leave a void of about $20,000 in revenue for the city.
“Our fund is fairly substantial anyway, but every little bit of revenue helps,” he added.
The value for recyclables has decreased rather steadily since the mid- to late-1990s according to city records, but Ross said the country's current economic situation is probably contributing to the situation. Aluminum cans are a big seller for the city. In July for example, the city took in $1,960 in revenue from aluminum cans by the ton. By December, the return was down to $234.
“I assume by the current economy, that this will continue, but it does leave a bit of a hole in the city's garbage fund,” Ross said.
In other business, the council revisited the surplus of the city Fire Department's 1970 LaFrance fire engine. A used engine was purchased last year to replace the aging vehicle, which is currently not being used and Ross said is taking up space at the station. An initial bid was set at $3,000, but it received no offers after a period of advertising. A few offers were made to buy the engine for $1,000.
Ross said the department is in need of that space, and proposed the council approve a revised minimum sale price of $1,000, to which the council unanimously agreed.
Cara Lorello can be reached at [email protected]
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