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HomeMy WebLinkAbout12. 21-304 JUNE 8, 2021 21-304 RESOLUTION (CARRIED___6-0____ LOST _______ LAID OVER _______ WITHDRAWN _______) PURPOSE: APPROVE SUPPORTING THE RESTORATION OF RECYCLING GRANT FUNDING INITIATED BY: CITY ADMINISTRATION WHEREAS, recycling provides a whole host of environmental benefits, including preserving natural resources, less air pollution, energy savings, reduced greenhouse gas emissions, reducing mining wastes and conserving landfill space; and WHEREAS, recycling also provides extensive economic benefits, providing material feedstock for manufacturing, business development, state and local tax revenue and four times more jobs than the disposal industry; and WHEREAS, the State of Wisconsin mandated recycling in 1990 under 1989 Wisconsin Act 335 and Administrative Code NR 544; and WHEREAS, Towns, Villages, Cities and Counties responded by becoming Responsible Units for Recycling and as such, invested millions of dollars in education, collection and processing infrastructure for Effective Recycling Programs; and WHEREAS, an effective recycling program includes operating a recycling collection system for residents, conducting recycling education, developing methods of compliance and implementing all other facets of the law; and WHEREAS, the Legislature recognized that implementing effective recycling programs would require financial assistance and approved the Basic Grants for RUs, the funding for which comes from a Recycling Fee, a $7.00/ton fee charged on each ton of municipal solid waste disposed of at Wisconsin landfills; and WHEREAS, annually $30-$40 million is collected as the Recycling Fee; and JUNE 8, 2021 21-304 RESOLUTION CONT’D WHEREAS, while the Recycling Fee dollars collected by landfills has remained consistent or increased, the money available to RUs has diminished from $29.5 million in 2009 to $19 million in 2020; and WHEREAS, the State of Wisconsin originally proposed to cost share 66% of the Responsible Units’ costs for establishing and maintaining Effective Recycling Programs; and WHEREAS, in 2018, the Recycling Fee Grant Funds covered only 16.4% of the eligible recycling expenditures reported by Responsible Units; and WHEREAS, to build on the recycling successes of the past 30 years, to maintain local recycling infrastructure and to continue to supply local manufacturers with recycled material feedstocks, additional funding is needed to support the growing expense of local programs; and WHEREAS, the Winnebago County Solid Waste Management Board has also adopted a Resolution urging the restoration of recycling funding to the Recycling Grant Program. NOW, THEREFORE, BE IT RESOLVED, that the City of Oshkosh hereby joins with Winnebago County and other municipalities and counties to urge the Wisconsin Legislature and Joint Committee on Finance to restore recycling funding to the Recycling Grant to its previous base funding of $29.5 million. BE IT FURTHER RESOLVED that the City Manager cause a copy of this resolution to be forwarded to the League of Wisconsin Municipalities, Winnebago County State Representatives and State Senators, the Joint Committee on Finance and Governor Tony Evers. I:\Engineering\Tracy Taylor\Memos to Mayor & Common Council\2021\Approve Support Restoration of Recycling Grant Funding_6-3-21.docx Page 1 of 2 TO: Honorable Mayor and Members of the Common Council FROM: James Rabe, Director of Public Works DATE: June 3, 2021 RE: Approve Supporting the Restoration of Recycling Grant Funding BACKGROUND In 1990, the State of Wisconsin mandated recycling under 1989 Wisconsin Act 335 and Administrative Code NR 544. Because the legislature recognized that implementing effective recycling programs would require financial assistance, it approved Basic Grants for Responsible Units (RU’s). The funding of these grants comes from a Recycling Fee of $7.00/ton fee charged on each ton of municipal solid waste disposed of at Wisconsin landfills. Municipalities (including Towns, Villages, Cities, and Counties) responded by becoming RU’s for recycling and invested millions of dollars in education, collection and processing infrastructure for effective recycling programs. Originally, Brown, Outagamie, and Winnebago Counties all constructed material recovery facilities (MRF) in their individual counties to serve the recycling processing needs of their residents. In 2002, these counties signed a cooperative agreement to consolidate recycling processing operations and to eliminate one (1) MRF in order to improve efficiency and cost effectiveness. In 2009, to further enhance operational efficiencies and to invest in needed technological improvements, these counties consolidated all processing operations into a new, jointly- owned single-stream recycling MRF at a cost of $9.8 million. Additionally, over the years, these counties have invested additional funding of nearly $3.5 million to further enhance operational efficiencies, to expand recyclable material acceptance, and to make needed technological updates. ANALYSIS Originally, the State of Wisconsin proposed to cost share through the Basic Grants 66% of the Municipalities’ costs for establishing and maintaining effective recycling programs. Annually, $30 to $40 million is collected as the Recycling Fee. While the Recycling Fee collected by landfills has remained consistent or increased, the money available to RU’s through these grants has diminished from $29.5 million in 2009 to $19 million in 2020. In C:\Users\dianem\Desktop\06.08.21\12.docx Page 2 of 2 2018, these grant funds only covered 16.4% of the eligible recycling expenditures reported by municipalities. FISCAL IMPACT Restoring the Recycling Program Grant funding would have a positive impact on the City’s financial situation. In 2008, the City received $402,371 through this program. In 2021, that amount will be $238,003, a 41% reduction is assistance over that time, while the revenue collected by the State of Wisconsin has held steady or increased. RECOMMENDATIONS I recommend approval of this resolution, urging the State of Wisconsin Legislature to restore the recycling grant program funding levels. Approved, Mark A. Rohloff City Manager JER/tlt