Agenda - 02-26-2003-ws2 - Laserfiche WebLink

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Executive Summary: This report by the Solid Waste Advisory Board to the Board of Orange County Commissioners investigates the financial situation of the solid waste management department and recommends to the BOCC methods for providing stable, predictable, long-term funding of solid waste management. The SWAB recommendation for the long-term funding is a comprehensive prepaid solid waste services fee to be levied on all improved properties in the County. A similar type of fee is used in Prince William County Virginia and Charleston County South Carolina The SWAB with the assistance of the Solid Waste Department Staff has determined that it takes approximately two fiscal years to fully implement the service fee system. Ashort- term funding system will be needed for the neat two fiscal years. The SWAB was not able to come to a definitive single recommendation for this interim funding and recommends that the BOCC work with the Manager to determine how best to provide sufficient funds to continue operations at their current level while planning for future needs. Several short-term financing options based on fees or taxes are discussed in this report. The SWAB has worked primarily on this solid waste financing issue for the past year. In developing its recommendations, it investigated a variety of approaches including property taxes, fees, special district taxes, and a comprehensive prepaid solid waste fee or some combination of those. The SWAB has determined that some type of financing mechanism is required to supplement the current revenues sources of tipping fees, interest income and sales of mulch and recycling materials revenue. These revenues are needed to maintain current programs and operations, implement the waste reduction programs to achieve the goals, provide longterm, secure disposal options and to maintain necessary reserves. SWAB has endorsed the County's Solid Waste Management Plan waste reduction goal of 61% per capita and the framework for achieving that goal as outlined in the State Solid Waste Plan. SWAB reviewed a staff analysis of the Department's projected budgets utilizing a status quo scenario without significant expansions in waste reduction efforts. This analysis revealed that even the status quo would require substantial additional funding to fully support all current operations. The SWAB is also aware that the largest current source of revenue -- landfill tipping fees -- is limited by the long-term capacity of the landfill and is incapable of fully funding county programs and services until closure. This net revenue source will diminish significantly in 2009 when the lined landfill is scheduled to close and be replaced by a transfer station with out of county disposal of waste. Income from the transfer station will be largely balanced by the cost of operating the station, hauling, and tipping fees at the remote private destination landfill leaving little surplus. There is further income from the construction and demolition waste landfill, but that will fund primarily C&D landfill operations and the extensive and successful C&D recycling programs now in place. At