Agenda - 06-01-1999 - 9a - Laserfiche WebLink

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2 portion of community benefits will be determined to be appropriate for financing through enterprise funds. The Board may pursue several approaches to funding such a reserve: a) A portion of existing landfill reserves could be redesignated for community benefits, with the understanding that tipping fees would likely need to be raised in the future to generate reimbursement to the specific landfill reserve account which has been tapped as the interim source of funding for community benefits b) Increase the MSW and C&D tipping fees by an additional dollaz per ton to $40 for 1999-2000. The resulting revenue would be designated for implementation of remaining community benefits. c) Some combination of a) and b). As a matter of legislative process, we recommend that the Boazd establish the major pazameters (size of budget, tipping fees, use of reserve funds, etc) that it wishes to use to shape the 1999-20001andfill budget. The Boazd could then adopt the attached resolution (see page 23 - to be modified during the course of the Boazd's discussion during the June 1 meeting), which would convey to the Chapel Hill Town Council the Boazd's intended structure for the budget. The Town Council would then exercise its continuing responsibility to administer the Landfill Fund by adopting a budget ordinance which reflects the major pazameters specified by the Boazd of Commissioners. Adoption of such a resolution at this June 1 meeting will subsequently permit the Chapel Hill Town Council to include the Landfill Fund when it approves the Town's 1999-2000 Budget Ordinance at its June 14 meeting. The Town of Chapel Hill will continue to administer the Landfill Fund until handover to the County later in FY 1999-2000. The handover is scheduled to take place six months after the consummation of a solid waste management interlocal agreement between the County and the Towns of Carrboro, Chapel Hill, and Hillsborough. It is important to note that under the current interlocal agreement, all three governing boazds must approve any change to the tipping fee schedule. Accordingly all three boazds must indicate a willingness for the MSW and C&D tipping fees to increase to $39 or $40 per ton, or the fees will remain at $38 per ton for 1999-2000. FINANCIAL IMPACT: The Landfill Fund is administered by the Town of Chapel Hill as aself-funded enterprise operation. The County will assume operations sometime during the 1999-2000 fiscal yeaz and will continue operations under the same principles. There will be no direct impact on the County's General Fund or on the County's ad valorem property tax rate from the County's assumption of overall solid waste responsibility. The proposed Landfill Fund budget includes an increase in the tipping fee from $38/ton to $39/ton for mixed solid waste (MSW). Based on an estimate of 12,600 tons of MSW to be collected and disposed of by Orange County Public Works, the County budget impact from the tipping fee increase is estimated at $12,600 for 1999-2000. This increase has been included in the recommended County budget for the Public Works Department. If the Boazd of Commissioners and other governing boazds approve an increase to $40 per ton, there would be a need to add an additional $12,600 to the County Public Works budget during June budget work sessions. RECOMMENDATION(S): The Manager recommends that the Boazd determine the parameters of the 1999-2000 Landfill Fund budget and adopt the attached resolution conveying those budget parameters to the Chapel Hill Town Council.