Orange County NC Website
Browse       Search
2 <br /> 1 Bonnie Hammersley reviewed the information below, and noted that this presentation <br /> 2 has already been given to the Solid Waste Advisory Group (SWAG). <br /> 3 <br /> 4 BACKGROUND: The Department of Finance and Administrative Services determined that the <br /> 5 current programs fee of $107 was not sufficient to meet Solid Waste expense requirements in <br /> 6 subsequent fiscal years attributed in part to a dramatic shift within the Recycling industry. From <br /> 7 fiscal years 2010-11 to the present, the recycling market has undergone significant changes <br /> 8 which have resulted in a decrease in recycling revenues to the Solid Waste Enterprise Fund. <br /> 9 During the same period, operating expenses for recycling operations processing has increased, <br /> 10 as evidenced by the tons recycled. The chart below illustrates the decrease in recycling <br /> 11 revenues and the increase in tons recycled from FY 2010-11 through FY 2015-16. The Solid <br /> 12 Waste Enterprise Fund has had to utilize fund balance to offset the decline in recycling <br /> 13 revenues. <br /> 14 <br /> 15 As a result of the unstable state of the recycling market, the County retained an independent <br /> 16 third party consultant, SCS Engineers to confirm its' internal assessment by conducting a solid <br /> 17 waste cost of services and rate study. SCS Engineers in collaboration with County staff <br /> 18 developed a Five Year Financial Plan to ensure fiscal resiliency to the Solid Waste Enterprise <br /> 19 Fund on a long-term basis while at the same time maintaining the County's record and <br /> 20 reputation for achieving high waste reduction targets and landfill diversion. <br /> 21 <br /> 22 The financial analysis concluded that an increased program fee is necessary to achieve a <br /> 23 sustainable and recurring revenue stream for the Solid Waste Enterprise Fund. The suggested <br /> 24 method for increasing the fee is to use a multi-faceted approach with a General Fund and a <br /> 25 Solid Waste Fund Balance contribution to modestly increase the program fee. On January 30, <br /> 26 2017, the County Manager presented to the Solid Waste Advisory Group (SWAG) two options <br /> 27 that used the multi-faceted approach (Attachment C). Also, the Community Development <br /> 28 Director will develop a communication plan to inform residents of the Solid Waste program fee. <br /> 29 <br /> 30 Bob Dick with SCS Engineers made the following PowerPoint presentation. He <br /> 31 reviewed some history, noting, prior to FY 15-16, Orange County had several different fees <br /> 32 after the closing of the sanitary landfill in 2013. He said these fees were discontinued in 15-16, <br /> 33 and the County introduced a comprehensive program fee to 60,000 developed parcels. He said <br /> 34 the finance department observed a potential shortfall, and SCS Engineers was called in to look <br /> 35 at a more comprehensive 5-year financial plan. <br /> 36 Bob Dick made the following PowerPoint presentation: <br /> 37 <br /> 38 Financial Plan and Rate Study for Solid Waste Enterprise Fund <br /> 39 Orange County, NC <br /> 40 Presented by Bob Dick, PE and Ryan Duckett <br /> 41 February 16, 2017 <br /> 42 <br /> 43 Summary of SCS' Efforts <br /> 44 Since May 2016 SWAG Meeting <br /> 45 • Revision of Financial Model based on Actual FY 2016-17 Budget <br /> 46 • Budgetary Leveling throughout Financial Model <br /> 47 • Additional Revenue/Expense Analysis <br /> 48 • Finalize and Submit Final Report <br /> 49 <br /> 50 Solid Waste Enterprise Fund <br />