Agenda - 05-05-2005-3 - Laserfiche WebLink

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early to identify long-term impact/results at this time, improvements in both areas are anticipated. Public Works/Motor Pool proposes increasing the frequency of preventive maintenance service for all vehicles in the County fleet to 3,000 miles, including both newly acquired vehicles and those already in the fleet. Financial/Budgetary Issues Budgetary Implications Due to Transition: • The Sanitation Division is eurently funded through the general fund within dre Public Works Department budget. hi practice the Sanitation Division budget is intertwined/commingled with the other divisions within the Public Worlcs Department that is reflective of the partial integration of departmental operations/functions. Appropriations within these divisions are frequently shared and overlapped among and between divisions, requiring much effort in clazifying and de-aggregating these costs so that a thorough financial analysis could be conducted. When the Sanitation functions are separated for the transition, this results in some additional costs to Sanitation and Public Worlcs. • The additional cost to Public Works for the transfer of Sanitation to Solid Waste is: • Approximately $13,625 increase in budget for contractual services and supplies • Approximately $10,420 decrease in budget, which does not include the indirect costs related to Motor Pool for the elimination of eleven vehicles and two pieces of equipment. • Net Increase = $ 3,205 • Currently the assumption is that Sanitation is to be incorporated into the enterprise fund and fully integrated in a financial/budgetary mamrer with the General Fund making an annual contribution to the enterprise fiord equal to the Sanitation budget. Alternatively Sanitation could be maintained as a general fund division with parallel accoturting conducted to maintain separate financing. Pursuant to the Interlocal Agreement enterprise funds (3-R Fee, Tipping Fees, etc.) may not be used to fiord non-system activities. In other words, Sanitation must bring its own funding and that accounting must be practiced which demonstrates that Sanitation has its own fiurding source and doesn't improperly utilize landfill and recycling fees/revenues for its operations. Reasonable effort will be made to account for' Sanitation Division fiords separate from other enterprise funds. This will require some additional staff attention, at least initially, in developing management systems that maintain some level of financial separation wifliout becoming overly preoccupied.. Staff believes this is easily manageable. • Attachment D represents a summary of the proposed FY 2005/06 Sanitation budget as compared to the Original FY 2004/05 and the FY 2004/05 estimated year-end projections. Attachment E sununarizes the basis for proposed budget increases, explained by illustrating budget increases delineated by anticipated one-time start up transition costs, recurring costs due to the transition, as well as some budget increases that would be incun-ed ttmelated tc transition. The proposed FY 05/06 budget is compared with FY 04/05 to determine the most accurate estimate of budgetary impact on Sanitation. Most of the anticipated Sanitation budget increases are unrelated to the transition such as increased fuel and Yipping fees. 7