Agenda - 09-14-1999 - 2 - Laserfiche WebLink

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8 2. Proaertv taxes as sole source of financin The Alternative Financing Committee asked about the impact on property taxes if that were the sole support of the Solid Waste Management,Plan implementation. Because the Solid Waste Management Plan was developed as a unified countywide plan, this analysis was developed assuming that additional revenues required would be funded through the Orange County tax rate, rather than through adding to the, tax rates of each jurisdiction in the County. In this way, all Orange County residents would be charged for solid waste management on the same , basis, and would be charged only once. The assumptions made in this scenario are that the FY 1998 -99 Countywide property tax base of $6,009,267,349 would increase at 1.5% per year. The Orange County tax rate would need to increase by $0.0406 in FY 2001 -02 to fund the Solid Waste Management Plan implementation and would result in an additional $58.58 in property taxes to the "average" .($140,000 value) homeowner, and the rate would increase $0.05217 by FY 2005 -06 with a tax impact of $78.30 on the average homeowner. Use of property tax revenues to fund the Solid Waste Management Plan implementation would provide a subsidy Of tax- exempt properties by other sectors of the community, and undeveloped properties which do not receive any recycling or waste reduction services would still be paying for those services. 3. Availability Fee. The use of an Availability Fee makes a direct connection between the level of service provided or available to various waste generators and the cost that is assessed for that service, similar to any other utility charge. Most 'nearby counties have levied availability fees to fund solid waste activities, including. Wake, Durham, Chatham and Mecklenburg Counties. The Availability Fee was generated in both the "actual" and "stabilized" form. The "actual" availability fee would simply be that fee necessary to fund Solid Waste Management Plan programs in a single year. The "stabilized" fee has been modified to reduce the volatility of fees from year to year. By charging a little more in a year in which revenue needs are lower, it is possible to charge a little less in a year when revenue needs are higher, easing both budgeting and public acceptance. The projected Availability Fees for each sector in each of the benchmark year are shown below. A more detailed explanation of fees by year and.the recommended level of Availability Fees, the user base (current and projected number of beneficiaries) in each sector, and the total revenue generated by each sector and total aggregate revenue, are included in the November 20 staff report (Table 5). These availability fees would generate the revenue required to fund the solid waste system cost not covered by tipping fees. This is the level of funding needed, regardless of which revenue tool is being considered. Availability Fee Type FY 2001 -02 FY 2005 -06 Urban Curbside $69 $86 Rural Curbside $51 $68 MUW7NMilY $2,300 $2,950 C ommercial $450 $825 � Although residential properties are fairly uniform in their service level, the Solid Waste Department staff is anticipating that there would be a tiered fee structure for the Multi- Family and Commercial units based upon their size and service demands, thus modifying the average prices shown above for those facilities. The use of availability fees as a funding mechanism would allow the flexibility to include or exclude tax- exempt or undeveloped properties and to adjust some fee structures based on the level of service received. 3 E