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2009 Economy, Markets Update and Revenue Share Summary Significant changes to the global economy took effect in the last quarter of 2008. Beginning in October 2008 and continuing through much of 2009, Eureka Recycling began to see the impact the troubled economy was having on the prices being paid for recycled material. Demand worldwide for recycled commodities decreased by at least one-third in late 2008 and the beginning of 2009. As a result, the value being paid for many recycled commodities decreased by about two-thirds across the board. A convergence of weak economies, damaged financial institutions, and an expected market correction led to the price downturn in the last quarter of 2008 which continued through much of 2009. The prices being paid for most commodities have recovered somewhat and bottomed out in the first and second quarter of 2009. However, while the prices are slowly rising, commodities are not expected to rebound to levels as high as those reached in October 2008. Recycling commodity prices were at unsustainable highs at that time and were already trending downward to more sustainable levels. Despite the apparent moderated turnaround in the recycling markets the amount of revenue that the City of Roseville received in 2009 was 77.5% lower than in 2008 and over 65% lower than in 2006. When Roseville entered into a recycling service contract with Eureka Recycling in 2006, the city began receiving revenue share from the sale of the materials collected in their recycling program. Since 2006, Roseville has received $366,561.76 in revenue from recycling to continue to invest in the city's recycling program or other environmental programs. Prior to its partnership with Eureka Recycling the city received $0.00 from the sale of recycled materials from previous recycling companies. Eureka Recycling was the first organization to offer revenue share in the Twin Cities marketplace. 2006 Rev 2007 Rev 2008 Rev 2009 Rev 1st Quarter $21,165.32 $22,749.81 $33,159.16 $859.83 2nd Quarter $23,403.59 $27,992.48 $39,090.85 $4,810.17 3rd Quarter $19,483.86 $30,002.00 $47,928.25 $8,587.23 4th Quarter $22,661.14 $34,551.08 $14,170.61 $15,946.38 Total $86,713.91 $115,295.37 $134,348.87 $30,203.61 Eureka Recycling continues to share the city's belief that the revenue received from the sale of the material collected in Roseville should be shared back with the city. This will provide revenue to be used locally to maintain the low cost of the program to residents and to support other waste reduction efforts of the city and its residents. The Silver Linings Despite what is happening in the recycling industry, the movement of recycling remains strong, especially in Roseville. The environmental, economic, and social benefits of recycling have never been more in demand. 2