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

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C1 • Over time, this method could result in individual jurisdictions, in order to reduce their obligation, trying to negotiate reductions in services which would impact other components of the Solid Waste system and potentially reduce the achievable solid waste reduction goals. IV. - 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 against them for that service. The HDR report of October 20, 1998, titled "Alternative Financing Strategies for Solid Waste Management Programs, Final Report", provides further information about availability fees, and the staff memorandum of October 20th to the Committee, reviews how the concept would translate to specific prices in Orange County. Table 5 shows for each year of the forecast period, the recommended levels 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. These availability fees would generate the revenue required to fund the solid waste system cost not covered by tipping fees, including the costs associated with the SWMP, and the level of funding that must be matched by any other revenue tool that is being considered. Throughout the analysis presented here, the "stabilized" availability fee is used as the benchmark for the revenue requirements of the waste reduction programs. The Availability Fee is shown in both the "actual" and "stabilized" form. The "stabilized' fee has been modified to reduce the volatility 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.. Graph 1 displays both the total "actual" and total "stabilized" availability fees over time to show the effect of fee leveling from year to year. Groh 2 examines the effect of the various funding scenarios discussed here on the average residential property owner (assessed value $140,000). In that graph, the majority of the difference between the "Availability Fee" (top line) and the "County Tax Rate" (2" line), is explained by the fact that the county tax rate would apply to non- developed properties, which comprise nearly -7.5% of the total tax base, but which do not receive service under the SWMP. This inclusion of undeveloped properties would lower the assessment against other beneficiaries. Points for Discussion • Because an Availability Fee relates to the level of services or benefits received, revenues to support the SWMP are provided without consideration of "ability to pay;" therefore, waste reduction and recycling services are addressed as any other utility service might be. . • Availability Fees, unlike local taxes, are not deductible for purposes of federal income taxes.