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

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The SWAB also realizes that such a system of financing is a radical departure from the current approach where 90% of revenue is from tipping fees and the other 10% from a combination of recycling sales, mulch sales, state grants for tires and white goods and interest on the reserve fund. Establishing a new system with all Orange County property owners pre-paying solid waste fees would likely take two years to implement as it did in Prince William County Virginia. In addition to the considerable public debate required for such a fee, there are technical complexities of determining the level of fee to be paid by each class of users, especially the variable commercial sector. Thorough integration of operations and data of the Tax Assessor, Revenue Collections, Information Services and Land Records/G.LS. Departments will be necessary for success. There are also significant public education and outreach efforts involved in consideration of such a fee structure. The SWAB supports the prepaid comprehensive service fee as it most closely matches the overall set of guiding principles endorsed over the past year including: • Endorsement of the Solid Waste Reduction Plan goals and framework, • Capturing revenues from non-profit properties, as they too generate solid waste, • Using the existing tax collection system to collect solid waste revenues, • Leveling fees or taxes to prevent yearly fluctuations, • Creating equity among classes of system users such that revenues collected reflect services received, • Requiring property owners, rather than occupants to pay the fee or tax, • Creation of dedicated and restricted reserve funds for equipment and landfill closure are prudent policy, • Maintaining a healthy fund balance of a minimum of 12% of the annual budget, • Viewing the fund and the operation as an integrated whole, rather than disparate parts to be completely separated functionally and fiscally. The SWAB recognizes thatthere are significant legal issues to be resolved before such a fee could be considered. Even if it is deemed legal for Orange County to enact the fee, there would be significant technical and political work involved in implementing such a fee that would likely take the same two years it took elsewhere. Consequently, the SWAB recommends that the Board and Manager develop a bridge financing mechanism to get the Solid Waste Management Department through the next two years while the permanent financial plan is being developed. The SWAB discussed in detail the use of availability fees to fund parts of the budget that provide specific services to specific sectors such as weekly curbside recycling in the incorporated areas or biweekly curbside in unincorporated areas. District taxes were considered, as was a general property tax increase earmarked for solid waste. A combination of those fees and taxes was also reviewed. The SWAB ruled out sending a bill to each local government for services rendered and allowing them to find a payment method of their choosing or direct payment by each government for services received. Also deliberated and eliminated were voluntary user fees for non-landfill services such as