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Orange County, NC <br />Financial Plan & Rate Study for Solid Waste Enterprise Fund <br />FINDINGS AND RECOMMENDATIONS <br />Our findings and recommendations, including revenue increase strategies, expense reduction <br />strategies, and rate benchmarking from the Study are presented in Section 5 and summarized <br />below. SCS offers the following findings and recommendations for the County's consideration: <br />• As outlined in Scenario 1, the Fund's current financial structure is unsustainable and <br />maintaining the current Program Fee amount ($107) along with the Status Quo <br />program services will yield significant annual deficits over the next 5 -year period, <br />even with the current practice of General Fund contributions. <br />• The exercise of allocating monies from the Fund's balance ( "Reserves ") to cover the <br />annual budget deficit each year will deplete the entire Fund balance in approximately <br />5 years at the current rate of spending. <br />• The Pro Forma Rate Model developed as part of this cost of service study should be <br />updated annually and used for long -term financial forecasting of the Fund and to <br />evaluate the likely impact of proposed Department operational changes. <br />• Based on a cursory review of the program, SCS did not identify any notable <br />inefficiencies within the Department operations. SCS recommends the County <br />conduct a more in -depth review of its program on a routine basis to identify <br />opportunities for revenue increase and expense reduction. <br />ES -4 <br />