Agenda - 11-18-2010 - 1 - Laserfiche WebLink

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15 SOLID WASTE WORK GROUP SWCC RECOMNtENDATlONS Table 7: 7-Year Enterprise Fund Household Fee Required for Final Recommendation with General Fund Support Phased Out over 6-Year Period FY 2011112 FY 2012113 >='f 2013!14 F'l 2014195 ~' 2015116 FY 2fl16117 FX 209 N18 Flat Fee Flat Fee -all Households $22 $22 $33 $33 $41 $41 $51 Flat Fee Tiered Fee -Rural $38 $38 $59 $59 $72 $72 $91 Tiered Fee -Urban $17 $17 $26 $26 $32 $32 $40 Tiered Fee -Multi Family $7 $7 $7 $7 $7 $7 $7 The following notes #1 through #10 provide background on the line items and numbered note references shown in the 7-Year Enterprise Fund forecast in both scenarios. 1. Operating costs that incorporate the savings projected for the more efficient sites are shown, building from a baseline direct cost structure in FY 2010 of $1,793,609 increased at 3% per year, plus the Sanitation Division's allocation of environmental services administrative charges (currently funded only by the landfill and 3-R programs) to arrive at the $2,016,312 identified in the FY 2011/12 expense line item in Table 4 and Table 6. 2. Capital debt retirement for the SWCC upgrades that is assumed to be the annualized amortization of capital for the Neighborhood/District SWCC System financed over 10 years @ 5% ($323,751) plus amortization for replacement of existing SWCC capital (Sanitation Division rolling stock amortization estimated at $40,600). 3. The 3-R Fee Contribution is pro-rated based on the portion of each SWCC site used for recycling. That has been fixed at $261,000 each year, though it could increase based on the square footage at the SWCCs that's taken up by recycling activities including wood, metal, etc, in addition to the conventional recyclables. 4. The General Fund contribution is assumed to be eliminated effective year 1 in Table 4 and phased out over six years as shown in Table 6. 5. The Proposed Household Fee, discussed as part of an expanded 3-R Fee, is calculated based on required funds, shown in Tables 5 and 7 as both flat fees across all parcels or pro-rated in a tiered structure to the different sectors as a function of frequency of use. 6. The Account-Based Fees would come from fees charged to small commercial and institutional users that would now be allowed to use the larger District sites -with an assumption of 15,000 uses and a $10 net revenue (over costs) for each use of the service, Use is projected to escalate 20% per year as these small haulers learn how to use the site after the landfill closes and the Durham Transfer Station is the next nearest disposal site. 7. The Net Surplus/(Deficit) shows revenues minus costs for that year -indicating whether the Enterprise Fund has covered its obligations for that year or would need to draw on cumulative Enterprise Fund reserves if a deficit is shown. 8. The Cumulative Net Surplus/(Deficit) shows any build up of reserve in the Enterprise Fund generated from the SWCC program, funds which serve as a contingency should a deficit result in any one year. 10/27/10 ORANGE COUNTY SOLID WASTE Page 7 of 8