Starting next month, residents and businesses will have to find a new place to dump the bulk of their recycling.

The city’s oldest non-profit recycling plant will shut down its drop-off service — free to the public and open 24 hours — after Oct. 15 due to a lack of funding, the Raven Recycling Society announced Monday afternoon.

The impending services cutback threatens sustainability goals in the Yukon, including 50 per cent waste diversion by 2015, set by the City of Whitehorse and the territorial government, said Jacqueline Bedard, president of the non-profit society’s board.

“We are sad to be making this announcement today and apologize to all our customers who faithfully bring their recycling to Raven,” Bedard told a news conference Monday.

The facility will no longer accept any “non-refundables,” which include high volumes of cardboard, mixed paper and mixed plastics as well as tin, glass, Tetra Paks and Styrofoam.

Raven itself, one of only two recycling facilities in the territory, will remain open and continue to accept bottles, aluminum cans, scrap metal, computers and other materials “that come with a stable funding source,” the society said in a release.

The full range of recycling options will also continue for organizations and government offices that pay for the service.

“Today, we are in a situation where although we want to continue to provide more and better recycling services to the public, we cannot do so unless governments create a solid funding framework in which we can do our job,” Bedard said inside the recycling yard off Industrial Road.

The facility underwent major renovations in 2012 to improve services to the public.

She said the “diversion credits” that recycling operations receive from the city and the Yukon government for non-refundables translate to $150 per tonne. That compensation for effectively reducing landfill waste in the territory covers less than half the cost of processing the materials.

“If they doubled that, that would cover the cost in the short-term and we could keep going,” said Joy Snyder, Raven’s executive director.

The funding issue has been building for a number of years, she said. “We have cut expenses as much as possible, including laying off staff.”

Last year, Raven cut one full-time and one part-time position, with some remaining staff working reduced hours. Yesterday, the organization announced it had no choice but to cut two more full-time positions as well as a part-time job.

“It’s a sad day for all of us,” Snyder said.

Set to expire in December, the government diversion credit was put in place for one year as an interim measure while it develops a funding framework, Raven said.

Meanwhile, handling and processing fees from the territory have not been updated since 1992.

“Every time a pop can passes their desk, they get a penny. And then when we process it, we get a penny,” explained Shannon Clohosey, the city’s manager of environmental sustainability.

The territory also doles out cash under its Beverage Container Regulations to cover the processing cost of all pop, juice and liquor containers.

These comprise Raven’s “refundables” — only 11 per cent of the materials they handle.

Community Services Minister Brad Cathers did not return a call from the Star today before the paper went to press this afternoon.

An aide said the minister would be available later this afternoon.

For the foreseeable future, Raven recommends residents look to P&M Recycling on Ray Street, the Yukon Blue Bin Recycling Society’s pick-up program — available to some Whitehorse residents — or the recycle bins at the dump.

The government announced last week it is reviewing its compensation program for refundables. It is considering including milk containers as a refundable item alongside beer cans and pop bottles — already included — and increasing handling and processing fees, according to Raven.

Mayor Dan Curtis noted the city has contracted a consultant to study recycling possibilities, with a report due in November.

“We’ve been looking for short-term and long-term options together,” he said, emphasizing a collaborative approach to resurrecting Raven’s full body of services.

Back at the recycling yard, the executive director was not so hopeful.

“It’s a government responsibility,” Snyder said.

“The YG’s recent announcement on changes to the BCR (Beverage Container Regulations) is welcome and long overdue. Unfortunately for Raven, it is too little too late.”

Changes are not expected to be implemented for at least 12 months, “and we cannot hang on that long.”

Board director Bedard added: “No, there aren’t grounds for optimism.”

Pat McInroy, head of the privately run P&M Recycling, said he would do his best to handle the expected influx of material after Oct. 15

“We’re always open to new customers. If people want to bring their bottles and cans, and their non-refundables, we’ll certainly take it,” he said.

“Unfortunately, we can’t handle all the non-refundable stuff for all the customers of Raven.

“I think people are pretty savvy to the idea that we have to have some non-refundable stuff coming, just like Raven does now.”