Agenda - 11-04-1996 - 8k - Laserfiche WebLink

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ur[ ti Memorandum 4 Ccngxna*w OfAbove Ondans At recent LarOM Owners Group meetings, the members have expressed an interest in utilizing a combination of larKW reserves and a tipping fee Increase to overcome the revenue defer. The following table shows the range of options assuming an Wmase in tipping fees on December 1, 1997. Tip Fee ftrMte EAL Tip Fee Rev From Fund Bdsnoe TOW Rabe" Rom" t I In 'g l 'I! 10 1 ip I I Find Gdonco% Find Bdwza of $D ton = 557.03 31122M 3.0% $1 PWIM 362'DO x704su :367 S1e3. 43% s2 ton :106,000 3�5ZOOD 5�7,0� ZM7.>a?9 5.7% 33 tan 5157" s199.MD 5337.00D 327aA M 7.1% M per ton I S210A00 147= $W.00D 3322M 8.59E i7 ton 1 3367.MD 10. W— M.420 128% The table assumes a December 1, 19%. I crease;a January 1, 1997,Increase would result in 57,500 less revenue for each$1 per ton increase. If tipping fees increase on December 1,the fiscal year 1996-97 cost to local govemments for each$1 per ton increase Ir the tipping fee would be as foligm (based on 1985.96 tonnage): GOMM&* $1 hrxaese $2 ftAM se $3#x nmm $4#resew . Cant )= $ 4,000 3 8,000 $12.000 $16,000 Chapel HE $13,300 $26,600 $39.900 $53,200 HWslX upit S 2.500 S 5,000 S 7,500 $10,000 Orange County $ 6,000 $12,000 $18,000 $24,000 Rommmu datlon In order to overoorne the projected revenue deficit.we recommend utilizing a cornbira ion of tipping fee ina+eases.program ctds and urdesignated hM balance as maws: ROM Reconwmx ed Ch RdKW Tipping t=ee Increases 82Ron Wood SM Waste $66,500 effective 12-1- $$Ron Construction Wemoltiion 338.500 Program Reductions ENT*u to Spring Newsletter $17,000 Etirrtinate Food Waste Program $17,000 Ar-O Fund Balance (J9e Fund Balance as Revenue $218.000 "Ad TOTAL $357.000 The m"Ok" wWOdWm ted fund balance, after using the $218,000, is esdmded at $251,929. or 6.896 of the brAN total apanibg budget We believe the$2 per ton Upping fee irtdesse would allow the !anal$$! to rw.m i. compsltive wNh odw disposal-AwMdes and M* the fiscal kWW on locxt Bove rin wd and p k#de hmulers. However,we note that for Ing year 1997-98,the absence of ash and the remaining undesigniOd fiord balance w7 likely Mine the Owners Croup to consider addibor>al tipping In ink,program reductions,or other potential soi ncos of revenue.