Agenda - 04-13-2004-9c - Laserfiche WebLink

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approach that rnrlically nlters base assumptions of the current financing fr~nmetvor•k, or is zmdada~ delayed, admitrash°ative planning for billing naay trot be completed in time fot° the normal balling cycle. The Enviromnental Finance Center of the Institute of Govermnent (EFC) at UNC has been providing county staff assistance over the past several months in developing the financial database used in the analysis and offering general financial information and guidance, The specialized financial assistance provided by the EFC has been invaluable in our efforts to provide accurate and reliable financial information and policy advice to the BOCC. The EFC's expertise in governmental financing has resulted in several reconunendations regarding financial assumptions and responsible financial management practices for enterprise fwtds. Statement of Problem The solid waste management enterprise fiord will be unable to continue providing the same level of service in FY 2004/05 as is now provided without major financial decisions that provide additional revenue. It should be noted that no state or general fiord appropriations are provided to fund recycling, nor waste reduction activities within the enterprise fund, with the exception of state reimbursements of an advance disposal fee for white goods and scrap tires and some small grants received on a competitive basis. Reimbursements for scrap tires and white goods only partially fund those programs. The proposed fee will provide the funding necessary to fund the current and future shortfall in revenue caused primarily by: • the success of local waste reduction programs in reducing waste being disposed, resulting in corresponding reductions in tipping fee revenue that bas historically funded solid waste programs/services, • investments in recycling and waste reduction programs whose recovered materials market value is significantly inadequate to pay for those recycling and waste reduction programs/services, and Orange County tipping fees are higher than other regional disposal options Figure 1 represents an illustration of the projected county recycling expenditures and revenues over the next nine years, which forms the basis for the need for supplemental income for these financially non-sustainable programs/services.