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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: May 5, 2004 <br />Action Agenda <br />Item No. 1 <br />SUBJECT: Proposed Waste Reduction, Reuse, and Recycling Fee <br />DEPARTMENT: Solid Waste Management PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />4/26/04 Solid Waste Director Memo <br />4/13/04 Solid Waste Director Report <br />3/23/04 County Attorney Letter re: <br />Waste Reduction, Reuse, and <br />Recycling Fees <br />(under separate cover, previously <br />distributed) <br />INFORMATION CONTACT: <br />Gayle Wilson, 968-2885 <br />TELEPHONE NUMBERS: <br />Hillsborough <br />Chapel Hill <br />Durham <br />Mebane <br />732-8181 <br />968-4501 <br />688-7331 <br />336-227-2031 <br />PURPOSE: To continue discussion of a proposal to implement for FY 2004-05 a tiered Waste <br />Reduction, Reuse, and Recycling Fee to be assessed on all improved Orange County property <br />to finance recycling and waste reduction services/programs, <br />BACKGROUND: Orange County is the recognized leader among North Carolina's 100 <br />counties for its progressive and professional approach to solid waste reduction and recycling <br />efforts, Orange County's innovative and well-managed programs have led to a per capita <br />reduction in solid waste disposed of mare than 45% since 1991-92, In 2002-03, Orange County <br />became the first county to achieve the State goal of 40% per capita waste reduction compared <br />to the baseline year. Ironically, Orange County's waste reduction success has created a <br />financial paradox, as the reduction in waste received at the landfill has led to reduced revenues <br />available to pay for recycling and reduction programs. <br />In recognition of this developing financial trend, discussions of the need for supplemental <br />financing for the solid waste enterprise fund have taken place since 1993, and in earnest since <br />about 1996. Enterprise fund reserves have been utilized to subsidize these reduction and <br />recycling programs for many years, However, the increasing success of and investment in <br />these programs have reduced the historical availability of surplus tipping fee revenue due to the <br />diminished volumes of waste being disposed. This situation has culminated in the current <br />situation of significantly reduced available fund balance to continue the annual subsidies <br />necessary to maintain existing programs and services, Therefore, an additional source of <br />supplemental income is vital to enable continuation of the existing array of services to Orange <br />County citizens. <br />The Solid Waste Management Director prepared a detailed report that outlines anticipated 10- <br />year revenue and expenditure needs, based on various assumptions about facilities and <br />