Agenda - 09-16-2010 - 2 - Laserfiche WebLink

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Draft Financin� The solid waste enterprise fund has functioned in a hybrid manner since taking over the Sanitation Division from Public Works in July 2007.The system has functioned as an enterprise fund for recycling and landfill services but used general fund monies to operate the Sanitation Division. The general fund pays for waste collection from convenience centers, County government buildings and the Orange County Schools,but the funds to pay for MSW collection from the schools axe now fully recovered through a fee-for-service arrangement. The Board of Commissioners has agreed to fully incorporate the Sanitation Division into the enterprise fund beginning July 1,2010,with the general fund being billed on a monthly basis for SWCC operations. Three-R(3-R)Fee revenues will begin to finance some recyclable material hauling costs previously funded by the general fund for materials such as clean wood, scrap tires, scrap metal,yard waste,and white goods beginning in 2010-1 l. The financial integration of the Sanitation Division into the enterprise fund will continue to be refine d and adjusted as necessary. Tables in Chapter 1 detail the funding,revenue and expenses for the Solid Waste Management Department in 2008-09. Recycling Program Financing Three-R fees wholly fund county recycling and waste reduction services and a portion of Environmental Support Division expenses. There are currently no recycling program expansions planned so 3-R Fee rates are likely to remain constant unless the shift of Sanitation Division recycling-related service costs exceed current fee levels. The major change since the previous plan submittal has been an increase in the various 3-R fees to provide for full recycling program funding, including indirect costs, or to cover operating costs related to expanded programs. This increase resulted in elimination in FY2009-10 of any recycling program reliance on landfill fees. We believe natural growth in existing programs will now be fully covered by the 3-R Fee charged to new units added to the various programs. E.g.the cost of serving a new single family urban house with curbside recycling is $52 per year and that is the fee they will be charged for that service plus the$37 basic fee that covers their portion of drop-off recycling, education, hazardous waste, etc. The exception is that there are two smaller commercial programs where the low level of 3-R fee ($37/unitlyear)does not reflect true program costs,but the tonnage diversion and longstanding nature of the programs along with the strong relationships between the County and participating businesses, have accounted for the continuation of those programs under the broader financing umbrella. This arrangement is likely to continue until a broader commercial program is established with a more comprehensive and targeted fee structure that enables significant expansion beyond the 250 or so businesses now served. That could be part of future long term planning considerations. 36