Agenda - 03-29-2012 - Abstract of Items

Browse Search

147 32 MEMORANDUM TO: Roger L. Stancil, Town Manager FROM: Kenneth C. Pennoyer, Director of Business Management SUBJECT: Orange County Landfill Financial Analysis DATE: January 23, 2012 PURPOSE To review the financial information provided by the County concerning the financial position of the Solid Waste Landfill Fund and the impact of the pending closure of the Municipal Solid Waste (MSW) Landfill. BACKGROUND AND DISCUSSION The Orange County Regional Landfill was established in 1972 as a joint venture among Orange County, Chapel Hill and Carrboro to facilitate the management of solid waste disposal in Orange County. The agreement established initial investment and ownership of the landfill at 43% for Orange County, 43% for Chapel Hill and 14% for Carrboro, with a combined initial investment for the three entities of $409,840. Under the agreement, the Town of Chapel Hill was designated as the administrator of the landfill operations and was responsible for the financial records of the joint venture. All users of the landfill, including the parties to the agreement, pay user charges based on proportional use. The joint venture operated until April 6, 2000, at which time the Town transferred all regional landfill assets and liabilities and the role of administrator to Orange County. Segment information for the period July 1, 1999 through April 16, 2000 is as follows: Operating Revenues $3,024,714 Operating Expenses 2,970,778 Operating Income 53,936 Non - operating Income $ 149,900 Depreciation Expense $ 610,798 Total Assets $10,284,701 Closure and Post Closure Liability 2,507,149 Total Equity $ 7,478,161 In addition to physical assets (land & equipment) that had a depreciated value of about $5.6 million, the Town transferred $4.17 million in cash, net of adjustments, as part of the transfer.