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6 <br />• Over time, this method could result in individual jurisdictions, in order to reduce their <br />obligation, trying to negotiate reductions in services which would impact other components <br />of the Solid Waste system and potentially reduce the achievable solid waste reduction goals. <br />N. -Availability Fee. . <br />The use of an Availability Fee makes a direct connection between the level of service provided <br />or available to various waste generators and the cost that is assessed against them for that <br />service. The fIDR report of October 20, 1998, titled "Alternative Financing. Strategies for Solid <br />Waste Management Programs, Final Report", provides further information about availability <br />fees, and the staff memorandum of October 20th to the Committee, reviews how :the concept <br />would translate to specific prices in Orange County. <br />Table 5 shows for each yeaz of the forecast period, the recommended levels of Availability Fees, <br />the user base (current and projected number of beneficiaries) in each sector, and the total revenue <br />generated by each sector and total aggregate revenue. These availability fees would generate the <br />revenue required to fund the solid waste system cost not covered by tipping fees, including the <br />costs associated with the SWMP, and the level of funding that must be matched by any other <br />revenue .tool that is being considered. Throughout the analysis presented here, the "stabilized" <br />availability fee is used as the benchmark for the revenue requirements of the waste reduction <br />ProS~s• <br />The Availability Fce is shown in both the "actual" and "stabilized" form. The "stabilized" fee <br />has bcen modified to reduce the volatility from year to year. By charging a little more in a year <br />in which revenue needs are lower, it is possible to chazge a little less in a year when revenue <br />needs are higher, easing both. budgeting and public acceptance.. Graph 1 displays both the total <br />"actual" and total "stabilized" availability fees over tune to show the effect of fee leveling from <br />year to year. . <br />Graph 2 examines the effect of the various funding scenarios discussed here on the average <br />residential property owner (assessed value $140,000). In that graph, the majonty of the <br />difference between the "Availability Fee" (top line) and the "County Tax Rate" (2°~ line), is <br />explained by the fact that the county. tax rate would apply to non-developed properties, which <br />comprise nearly-?S96 of the total tax base, but which do not receive service under the SWMP. <br />This inclusion of undeveloped properties would lower the assessment against other beneficiaries. <br />Points for Discussion <br />• Because an Availability Fee relates to the level of services or benefits received, revenues to <br />support the SWMP are provided without consideration of "ability to pay;" therefore, waste <br />reduction and recycling services. are addressed as any other utility service might be. . <br />,~ <br />• Availability Fees, unlike Local taxes, are not deductible for purposes of federal income taxes. <br />1- I <br />