SWAG agenda 110316 - Laserfiche WebLink

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Orange County, NC Financial Plan and Rate Study for Solid Waste Enterprise Fund General Fund Contribution: SCS understands that the County has established a precedent since FY 2007 -08 of utilizing contributions from the General Fund as revenue into the Sanitation Services Division. SCS' analysis was structured to assume that the contribution from the General Fund for the Test Year and four subsequent fiscal years is maintained at approximately $2 million per year. • Appropriated Balance Fund: SCS understands that the Appropriated Fund Balance line item account is used to balance the budget. It reflects load proceeds, Program Fee rounding, and other general fund transfers. While the County provided the value for the FY 2015 -16 Budget as approximately $1.7 million, SCS opted to only account for known debt - financed endeavors in future fiscal years, which includes loans for convenience center construction costs in FY 2018 -19 and FY 2020 -21 ($804,784 and $904,255, respectively). No other loan proceeds or general fund transfers were included beyond the Test Year. Also note that the $345,432 loan portion of the FY 2016 -17 Appropriated Fund Balance line item was included in the Revenues for both Scenarios for that year. • Contributions from Equipment Reserves: Note that one of the largest revenue line item accounts is the Contributions from Equipment Reserves, which has historically varied significantly from year to year and will likely do so in future years. SCS utilized values that were provided by the County as projected revenues for this line item account for the four subsequent future fiscal years. • Landfill Gas Recovery Revenue: SCS applied a deflationary factor of -3% to projected landfill gas recovery revenues to account for closure of the Orange County Landfill. EXPENSES Future projections for the 50 operating expense line item accounts for the four subsequent fiscal years (FY 2017 -18, FY 2018 -19, FY 2019 -20, and FY 2020 -21) are escalated using the annual inflationary factor and the Test Year as the baseline, unless noted below as being handled differently. • Landfill Fees: The solid waste collected by the County is currently hauled and tipped at the transfer station in Durham. SCS assumed that, in addition to escalating annual costs by an inflationary factor, the Landfill Fees operating expense line item account will be impacted by a $2 /ton tipping fee increase (from $42.50 to $44.50) in FY 2018 -19, which is a 4.7% increase. • Debt Service Principal /Debt Service Interest: Debt servicing line items including debt service to principal and debt service to interest were escalated but kept in the same proportion. • Contributions to Equipment Reserves: Note that one of the largest operating expense line item accounts is the Contributions to Equipment Reserves, which has historically varied significantly from year to year and will likely do so in future years. SCS C -2