Agenda - 12-08-1998 - 5c - Laserfiche WebLink

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►1 more haulers would have the incentive to use an alternate site: thus, a spiral of increasing tipping fees and lost tonnage would continue to feed upon itself. Table 2 estimates the loss of tonnage and tipping fee revenue each year, if the tipping fee were revised to provide the revenue necessary to implement the SWMP; it does not attempt to project the rest of the spiral of continued diversion. Table 2 also shows what the tipping fees would need to be, assuming the first wave of diversion, to finance the Solid Waste Management Plan. Raising the necessary revenue for the SWMP implementation solely through the increase in tipping fees was initially considered untenable by the Landfill Owners Group and was the basis for the formation of the Alternative Finance Committee to study other options. Points for Discussion • If the jurisdictions continue to fund the full cost of tipping fees through property taxes, then the system will continue to lose any potential revenue from tax - exempt properties which are receiving waste reduction services. • The increase in the cost to the local governments of the higher tipping fees would be the equivalent of the following in terms of pennies on the tax rate for FY 1999 -2000. 1. Carrboro 2. Chapel Hill 3. Hillsborough 4. Orange County Assuming no loss of tonnage Assuming loss of tonnage $0.02048 $0.04331 0.01972 0.04170 0.03983 0.00416 0.08401 0.00880 • One difficulty revealed through this mechanism is that each jurisdiction will adjust its own tax rates to fund the increased tipping fees. Orange County would be spreading its increased tipping fee cost over a tax base that encompasses both . the incorporated and unincorporated areas of the County. Thus, residents of incorporated Carrboro, Hillsborough and Chapel Hill would be paying twice, through their county taxes and through their municipal taxes. This situation exists now. • Through their tipping fees, privatelcommercial haulers now contribute to the cost of waste reduction programs.. But, when tipping fees rise high enough for commercial waste to be diverted to other disposal facilities, then individual taxpayers would be subsidizing the costs for commercial waste reduction and recycling programs. H. - Property taxes as sole source of fmancine. The Committee asked what the impact on property taxes would be if that were the sole support of the Solid Waste Management Plan implementation. Because the plan was developed as a unified countywide plan we have assumed that the question refers to the impact on Orange County taxes. In this way, all Orange County residents would be charged for solid waste