Recycling center faces $24K projected deficit in Charlotte

CHARLOTTE - The city's recycling center, now two decades old, is in serious financial trouble.

On Tuesdays and Saturdays the Hall Street facility is a busy place. Area residents often wait, a line of cars stretching down a curved driveway, to drop off paper, plastic and other recyclable items. Every year an average of 500 to 600 tons of material is recycled there.

But the center, overseen by a seven-member Charlotte Area Recycling Authority board that represents the city of Charlotte and four outlying townships, is operating in the red.

A projected deficit for the next fiscal year of $24,000, amounting to a third of the center's total $76,000 budget, has raised concerns among officials that, absent a solution, its doors may close for good.

'Dire' needs

Quinn Underwood, the recycling center's director for the last two years says the facility is in "dire" financial need.

Charlotte serves as the recycling center's fiscal agent. It oversees its staff of five, including Underwood, but it doesn't fund operations. Those are paid for through the sale of materials recycled there and an annual $20,000 grant from the Eaton County Solid Waste Alternatives program.

And Underwood said nearly everything the center collects is worth less today than it was two years ago.

"Right now it's kind of up in the air, what we can really expect," she said.

Charlotte's recycling center isn't the only one facing financial shortfalls. Last October the Grand Ledge recycling center's hours were reduced significantly. From 2006 to 2014 the city-run operation lost an estimated $21,000. Late last year Grand Ledge officials said it could close by this September.

Charlotte recycling center board member and Benton Township Supervisor Roger Wickerham said the center's revenues have dropped continually. "It's not making any progress," he said.

And this year that means turning to participating municipalities for money to balance the center's budget.

Charlotte and four neighboring townships  — Benton, Carmel, Chester and Eaton — are being asked to help close a funding shortfall this year, but officials say they aren't sure how much they're willing to give to support it in the future.

Charlotte City Manager Gregg Guetschow said the city has been asked to contribute about $2,500 by the end of June, but next year the city's share of the center's projected shortfall is $10,000.

"They're going to quickly get to the point where they've exhausted all the available cash, and then they won't be able to pay for operations and employees," he said. "Do we value recycling so much that we believe it's worth kicking in this sum of money to close the deficit?"

Wickerham said he doubts whether Benton Township officials will be willing to contribute more than $500 or $600 to the center.

"They don't mind providing minimal help," he said.

David Roberts, Eaton Township supervisor, said his board was "shocked" earlier this month when they learned the recycling center would be requesting financial help. Underwood has been asked to attend a June 2 Eaton Township board meeting, he said, so officials can obtain a clearer picture of the budget issues.

"Right now we're asking for more information," he said. "Everybody's going to have to budget for this."

Supporters working to raise funds

Officials say they recognize the center's importance.

Charlotte Mayor Tim Lewis said he's an "avid recycler" who uses the facility.

"I think it's a very important part of the community," Lewis said. "I find myself many times in long lines trying to get into the recycling center."

But he said municipalities can only offer a "degree" of financial support.

Guetschow said the center's board needs to offer a concrete plan to close its budget deficit.

Underwood said supporters of the center have only begun to raise funds to help cover the shortfall. Earlier this month they held a walk-a-thon at Bennett Park. It raised $2,000, she said.

"That's going to help but we're still going to be in financial trouble," Quinn said.

They're in the process of creating a nonprofit, "Friends of the Charlotte Recycling Center," to drive fundraising efforts.

Absent that, they've relied on another nonprofit, Eaton Area Senior Center, to sponsor the walk and an upcoming spaghetti dinner. A date for that event hasn't been set.

Underwood said she's hoping community interest will drive the success of future fundraising events.

"I would hope that we can get enough support from the community to keep going because we are a service," Underwood said. "I hope that everyone pulls together and helps to keep us going."

Contact Rachel Greco at (517) 528-2075 or rgreco@lsj.com. Follow her on Twitter @GrecoatLSJ.