A proposed reduction of Cape Elizabeth’s recycling hours could save nearly $15,000 on a budget that’s expected to drop by $500,000.

Residents may address the Town Council about the plan on Jan. 12, said Town Manager Mike McGovern.

The plan would eliminate eight hours on Thursday and two hours on Wednesday, saving the town $12,000 in labor and approximately $2,000 in other costs, according to a memo to the council from a group studying ways to cut overall waste-disposal costs.

Members of the group include Recycling Committee members Rachel Stamieszkin and Jennifer Hansen; Town Councilors Anne Swift-Kayatta and Sara Lennon; Public Works Director Robert Malley, and McGovern.

The plan comes as the town looks for ways to overcome a projected $500,000 shortfall in the 2010 without increasing taxes.

“The real issue is we need to marry the expectations for services with the desire to pay taxes,” McGovern said.

The working group found that Thursday is the quietest day at the recycling center. The group’s memo also noted that Wednesday after 5 p.m. is one of the quieter periods.

The group looked at recycling issues such as pay-per-bag or pay-per-throw systems, where users are charged for putting waste into the hopper, and enhanced recycling education.

“The cost of not recycling is enormous,” Swift-Kayatta said.

Cape Elizabeth’s recycling rate is 24 percent, which lags behind other communities that belong to the ecomaine waste-disposal network based in Portland. Most other communities recycle just over 30 percent, according to ecomaine statistics.

The working group also recommends raising the recycling rate by educating residents on the benefits of recycling, specifically by adding personnel at the recycling center to monitor what residents are throwing into the bins and to provide guidance and materials to those visiting the site.

“Along with continuing educational efforts in newspapers, on the Web site and through signage, the working group believes that this alternative could increase the recycling rate by 25 percent,” the memo says.

The group also recommended adding language to the town’s solid-waste ordinance to require recycling.

“Right now, there’s no teeth in anything we have,” Swift-Kayatta said.

The council will discuss the recycling recommendations at its next workshop on Jan. 6 at 7:30 p.m. at the Town Hall. The council voted to send proposed solid-waste ordinance language to its ordinance subcommittee, but the text has not been drafted.

The town is looking at any way to lower costs and save money while maintaining services, McGovern said.

“We’re dealing with the effects of the declining economy every day,” he said. “The proposed closing is just another manifestation of the challenging economic climate.”