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HARTFORD (AP) — Connecticut’s quasi-public trash recycling authority needs to develop new sources of revenue and make other changes to remain financially stable, an outside review has found.
The report by the consulting firm CohnReznick LLP says the Connecticut Resources Recovery Authority faces declining energy prices, increased competition, less waste being discarded, outdated technology and management problems, according to the Republican-American of Waterbury.
The authority manages garbage and recyclables for 75 of the state’s 169 cities and towns. The report was made for a state task force examining the function of the agency.
The report is a preliminary step to shifting the recycling authority to a new business model. It recommends that the authority develop more sources of revenue, revise its budgeting and streamline operations to become more efficient.
“The key question here is what is the most sustainable, sensible role for CRRA in a changing world,” said Daniel C. Esty, commissioner of energy and environmental protection and chairman of the task force.
The agency is projecting deficits for this year, the 2015 budget year and the following year, according to the report. It confirms concerns officials have had about the “long-term financial viability of the trash authority’s business model, Esty said.
A plan submitted to the task force must evaluate the consequences and benefits of closing the trash-to-energy plant, selling it or transforming it to an alternative use. It also must consider selling other assets.
In addition, the recycling agency must research the potential for savings from management and legal fees, labor costs and contract obligations.
The authority must review whether its financial and legal liabilities can be eliminated or reduced.
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