The Spectrum Network, a US based non-profit organisation, will terminate its recycling contract with Howard county on May 1, 2009. The company is ending the contract nearly two months earlier than originally announced June 30, 2009. The termination of the contract is due to financial losses at this recycling facility. The company will also end its recycling contract with the Winneshiek county, effective June 30, 2009.
The company has also reported major financial losses with recycling center in the Winneshiek County.
In November 2008, the company saw a net loss of $9,172 at the local facility, and in December 2008, they were $8,852 in the red. In January, 2009 the company experienced a loss more than $13,000 at the recycling facility, and company’s executive director Toni Smith anticipates the trend to continue.
Smith noted, “at this point, nothing has changed. It’s just lost more money.”
The county officials are also facing a tight budget for next fiscal year and have already allocated $35,000 per year in direct payment to the company for recycling facility, and also paying the salary and benefits for Howard County Recycling Coordinator. The county also pays for the maintenance and repairs up to a maximum of $20,000 on county-owned equipment leased to the company.
“We need to know exactly what the Spectrum Board’s plan is before we can go forward with it,” stated McGovern.
“We’re already going to ask for an extension on certifying our budget to the state because of this Spectrum situation,” stated Gamez.
“The purchase of the building and the land – we don’t have the money to do that,” stated McGovern.
“I would even implore you to call a special session. We need this information and we need it right away,” stated Gamez.
“We’re probably going to need an interim plan to help financially” if the county decides to take over the facility, stated Craig Fencl, Howard County recycling coordinator.