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HomeMy WebLinkAboutAgenda - 03-18-2014 - 5aORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 18, 2014 Action Agenda Item No. 5 -a SUBJECT: Solid Waste Service Tax District— Public Hearing DEPARTMENT: Solid Waste Management PUBLIC HEARING: (Y /N) Yes ATTACHMENT(S): Letter to Property Owners Report Filed in Clerk to Board's Office Including Map Frequently Asked Questions INFORMATION CONTACT: Michael Talbert, 919 - 245 -2308 Gayle Wilson, 919 - 968 -2885 John Roberts, 919 - 245 -2318 1 PURPOSE: To conduct the first of two public hearings, pursuant to North Carolina General Statutes 153A -302, to receive comments with regard to the proposed establishment of a Solid Waste Service Tax District in unincorporated Orange County. BACKGROUND: In 2004 the Board of Commissioners approved a new method of funding for the every other week curbside /roadside recycling collection program for about 13,000 residences in unincorporated Orange County. At that time the Board adopted a fee to fund the program, called a Rural 3 -R Fee, that all eligible residences were billed annually on their tax bills. The fee was assessed to all eligible for the service, regardless of whether or how often a resident used the service. In 2012 the County Manager and the County Attorney advised the Board that they had concerns regarding the statutory justification for assessing this fee and recommended that the Board eliminate the fee and consider other ways to fund that program. The 2012 tax bill was the last time the fee was assessed. The fee was $38 /year. In 2013 the Board provided an interim funding for the program from landfill reserves. Over the next several months the Board discussed various options on how to address this funding problem. Elimination of the program was even considered, but unanimously abandoned due to measured participation of the rural community of about 57 %. Some residents eligible for this service chose not to recycle, others delivered their recycling to convenience centers and a very few employed private haulers. It was also considered that the service was important in order to meet the County's aggressive waste reduction goal of 61 %. After considering and rejecting numerous funding alternatives, in December 2013, the Board indicated intent to implement a solid waste service district tax as the means to replace the funding lost when the fee was eliminated. The Board also discussed a subscription service option whereby those residents who wanted to retain the service could pay and those who wished not to pay could voluntarily opt -out. State statutes require a public hearing to be held prior to a Board adopting a service district, and the property owners of all parcels to be included in the district must be notified by letter of the hearing. The Board is conducting two public hearings: • This public hearing on March 18 at 6:00 PM at the Southern Human Services Center, 2501 Homestead Road in Chapel Hill; and • A second public hearing on April 1, 2014 at 6:00 PM at the Orange County Social Services Center, Hillsborough Commons, 113 Mayo Street in Hillsborough A funding decision with regard to the every other week curbside /roadside recycling collection program must be made and adopted prior to July 1, 2014 in order for this recycling service to continue. FINANCIAL IMPACT: If the solid waste service district is ultimately adopted, it is estimated that the district tax rate would be 1.5 cents per $100 dollars of assessed value of the property. For example, property with an assessed value of $100,000 would pay $15 /year in service district tax. A solid waste service district is similar to a fire service district. RECOMMENDATION(S): The Manager recommends that the Board receive comments and /or documentation with regard to the proposed Solid Waste Service Tax District and close the public hearing, with the plan to hold a second public hearing on April 1, 2014 at 6:00 PM at the Orange County Social Services Center, Hillsborough Commons, 113 Mayo Street in Hillsborough. K February 14, 2014 Fb: Public Hearing to discuss Solid Waste Service Tax District Dear Property Owner On February 4, 2014 the Orange County Board of Commissioners voted to hold two Public Hearings to consider the establishment of a Solid Waste Service Tax District effective July 1, 2014. You are receiving this letter because your property is located in the proposed Solid Waste Service Tax District. A Notice of the Public Hearing and a map of the proposed new Solid Waste Service Tax District are attached. The Solid Waste Service Tax District is being considered as a means to improve curbside recycling services in the county's unincorporated area. For those residents currently located within the rural curbside recycling service area and eligible for curbside recycling services, the tax district will replace the annual $38/ household Fbral 3 -RFee, which was assessed on the property tax bill from 2004 to 2012. A report, as required by North Carolina General Statute 153A- 302(b), containing additional information related to the proposed Solid Waste Service Tax District is available for public inspection in the office of the Oerk to the Board — 200 SDuth Cameron Street, Hillsborough (open 8:OOAM to 5:OOPM), beginning February 14, 2014. The first Public Hearingwill take place on March 18, 2014 at 6:OOPM at the Southern Human Services Center, 2501 Homestead Fbad, Chapel Hill, 27516. Asecond Public Hearing will take place on April 1, 2014 at 6:OOPM at the Social Services Center, Hillsborough Commons, 113 Mayo Street, Hillsborough, 27278. A brief presentation will be made at 6:OOPM to be followed by public comments. Please feel free to contact Gayle Wilson in the Solid Waste Management Department Office if you need additional information at 919 - 968 -2885 or gwilson _ rangecountync.gov M Pursuant to the requirement of the General Statutes of North Carolina, Chapter 153A-302(c) notice is hereby given that the Board of County Commissioners will hold a Public Hearing at the Southern Human Services Center located at 2501 Homestead Fbad, Chapel Hill, North Carolina 27516, on Tuesday March 18, 2014 at 6:00 p.m.; and a second Public Hearing at the Social Services Center, Hillsborough Commons, 113 Mayo Street, Hillsborough, North Carolina, 27278, on Tuesday April 1, 2014 at 6:00 p.m. for the purpose of taking specific action on the following item: creation of a Solid Waste Service District 1. A report prepared on the proposed district as required by N.GG.S. 153A- 302(b) may be inspected in the Office of the Clerk to the Board of County Commissioners located in the John Link Government Services Building located at 200 South Cameron Street, Hillsborough, North Carolina between 8:00 a.m. and 5:00 p.m., Monday through Friday. 2. A map of the proposed Solid Waste Service District is attached. Questions regarding the proposed solid waste service district may be directed to the office of Gayle Wilson located in the Solid Waste Management Department administrative offices at 1207 Eubanks Fbad, Chapel Hill, North Carolina, 27516. Office hours are from 8:00 a.m. to 5:00 p.m., Monday through Friday. You may also call (919) 968 -2885. Solid Waste Service District Deport February 13, 2014 Consistent with General Statute 153A -302 Orange County Commissioners provide this report regarding the proposed Solid Waste Service District that would be established to provide recycling services. 1) Map of proposed district — Attached 2) The Board of Commissioners will consider the following prior to mating a final decision with regard to the district: a. The resident population of the proposed district is estimated at 35,992. The estimated population density of the proposed district is211 people per square mile. b. The total appraised value of the properties subject to taxation in the proposed district is $4,478,900,424. a 2013 County Tax Rates are: Total RC Rate Combination 00 0.009316 County Tax +Orange Fire Tax 01 0.00946 County Tax+ White Cross Fire 02 0.011544 County Tax+ C.H. &h. Dst. +White Cross Fire Tax 03 0.00928 County Tax+ Efland Fire Tax 04 0.011664 County Tax+ C.H. Sch.Dst. + South Orange Fire Tax 06 0.00958 County Tax + South Orange Fire 07 0.011609 County Tax+ C.H. &h. Dst. + New Hope Fire Tax 08 0.009525 County Tax+ New Hope Fire Tax 09 0.009379 County Tax+ Eno Fire Tax 10 0.00918 County Tax +Orange Grove Fire 11 0.011264 County Tax+ C.H. &h. Dst. + Orange Grove Fire Tax 14 0.012164 County Tax +C.H. Sch. Dst. +Chapel Hill Fi re Tax 15 0.008986 County Tax+ Little River Fire 16 0.009316 County Tax + Cedar Grove Fire 17 0.011544 County Tax +C.H. Sch. Dst. +Southern Triangle Fire Tax 19 0.011544 County Tax + C.H. &h. Dst. + Damascus Fire Tax d. According to the U.S Census Bureau, median household income for the zip codes comprising the proposed district is as follows: zip code Income 27231 35,962 27278 61,654 27312 60,409 27510 38,576 27541 59,036 27572 68,610 27712 79,611 27514 54,759 27243 61,420 27516 72,171 27302 51,675 27517 83,619 27705 45,535 27707 45,538 The anticipated tax rate of 1.5 cents is equal to $ 37.50 for a residence with a value of $250,000. The recently eliminated Rural 3 -R fee for FY-12113 was $38 per residential unit; 12,547 parcels that received that fee. Therefore, about 60% the 20,545 residential properties included in the proposed district were already paying a similar fee. Based on the median family income of the proposed district zip code areas and the comparability of the proposed tax rate of the previously paid recycling fee, it is believed that the majority of property ownerswithin the proposed district would have the ability to sustain the new district taxes. e. Current preliminary estimates of revenue generated to finance the recycling services are $630,000. It is intended that the proposed recycling services be fully funded through the service district. 3) The following summarizes the plan for providing recycl ing services within the district: The bi- weeldy (every other week) recyclables collection service for the proposed district will be provided by Orange County staff and equipment as is the current service. Roll carts and/or recycling bins will be distributed to all residences within the district, and those few smaller commercial establishments that generate residential quantities of recyclables, in two phases over the next approximately 18 -20 months. The service is envisioned to be provided as a combination of automated with roll carts, semi- automated with roll carts or manual with recycling bins depending on specific service situations. Special services for the elderly or handicapped will continue to be provided. While the district tax would not be voluntary, participation in the recycling program is not mandatory. P W /,f ems of '-� }� '� ( r���,:.: c- i1� j �. 111 ag r\ r ti.:•� �Ni. . 11 l�r�.[¢ II�NO► � -,f � ►g•� �i as U �� �a>. P1 /�111►i lE ��� 111 ", �� , V�I ,I��! I _.� I■ ®0,1 M. '� rill '� i ■us6 � 1 NS � -■r fl�,f� \�I "•� i �� � °' + 1�`I�4r .■ ■o f}r `� �ti/,q �1T�r���l ■` J� pi . - 1 J. a may`,► � �• � - IE A �� , �`♦jj a.� � L�� 7nn.. il ► 7I r' EXj 41I/ .J � \ X11 0�1/4 Im 1111 0 ILA„ .Y 4§�. r . J I . � _ft_ ■ ■ ,e- 1� � I � / - ;In �I'�I ; h. a�1b f�rtd ', /dl11 VIII: � ,�'. ■ � �f 11111 Y♦ � � } L � L� .� o pr , ��, oil, , J ■ S � i, ,-. ��.' - .- aM +,fir �.11t! �• jr 41R"� a 411- r� ■r •r ri• � �IiM ;�� 1 ;11Fh:� ►lllr *�� [P"If� pl■' /��i�� Ire Y�BL 7 y 1 ►J� IA err f '-_ c- � . • ]171`1 �/� ff l . 11�I 'r"► �i'.•c16'��'Ir � -► A r %rte -E -,-�� 't— l "1.�.JJ��.l =1 111 -- Frequently Asked Questions Proposed Solid Waste Service Tax District March 2014 1. What is a Solid Waste Service Tax District? It is a defined geographic area of a county where specific sol id waste related services are provided and whose property owners fund the service through a tax that is set at a rate that will finance those defined services. 2. What is the Solid Waste Service Tax District that is being proposed by the Board of County Commissioners? The Board of Commissioners are proposing a service district that would provide for every other week curbside/ roadside recycling collection. The proposed district does not include waste/trash collection; only recycling. This service was previously funded by a $38 annual Floral 3 -R Fee that was billed on the annual tax bill, but that fee was eliminated following the 2012 Tax Billing. The service district is being proposed to replace the rural recycling program funding previously provided from that fee. The proposed service district will expand this recycling service to about 1,600 additional residents beyond the 13,750 households who are currently eligible for this service. 3. What if I don't recycle or take my materials to a Solid Waste Convenience Center? Is there an option whereby a property owner can opt -out of this service? The Solid Waste Service Tax District, as with the previous Floral 3 -R Fee, does not provide an exemption or opt -out option for those residents who choose not to use the service. Al property that is included within the district would be assessed the district tax. As with property taxes in general, there would be no opt -out option. 4. Snce I received a notice of a Public Hearing does this mean that my property will be included in the proposed district? Yes. If you received this notice your property, or if you own multiple properties, at least one property you own is proposed to be located within the district. If more than one property is owned only those located within the proposed district would be subject to the district tax. 9 5. How much will I have to pay through a district tax? The district tax rate will be set to generate funding for the every other week recycling service. It is currently estimated that the tax rate would be set at approximately 1.5 cents per $100 of assessed value. This would mean a property with an assessed value of $100,000 would pay $15 per year. 6. Why not continue charging the Fb ral 3 -R Fee of $38/ year? The County Attorney and the County Manager recommended to the Board of County Commissioners last year that the Board abolish the Floral 3-R Fee due to some uncertainty with regard to the fee being wholly consistent with state law authorizing counties to assess these type of fees. FbIlowing that recommendation, the Board agreed it did not wish to risk continuing a practice that was not unmistakably consistent with state law, so the annual rural recycling fee was eliminated and consideration of alternative financing of the rural recycling service was initiated. After several months of examining numerous funding alternatives the Board is proposing the Solid Waste Service Tax District to generate the replacement program funding. About 13,750 residentswho were eligible for the service were previously assessed the fee. 7. Will the Solid Waste Service District apply to vacant (undeveloped) land? Yes, the district tax would apply to all property located within the proposed district without regard to whether structures or homes exist on the property. 8. If the Board chooses not to adopt a Solid Waste Service District and wishes to establish a service opt -out program what would the estimated cost be for annual curbside recycling service? Is there data or information relating to performance of Opt -in programs? Key to estimation of the cost for opt -out service is the assumption made regarding how many paying customers will remain in the program. If the assumption is that of the current approximate 13,750 customers only 60% currently participate, and that of that 8,250 monthly users 20 %(1,650) choose to opt -out, the estimated annual fee for service would be increased accordingly Experience in other governmental jurisdictions (states and NC county's) provides convincing evidence that many property owners will choose not to participate, whir will result in increased costs for those who do participate. Economies of scale exist in recycling collection services like most other programs and services, meaning that the more property owners that join in funding a given service results in a reduced cost per each service unit. Alternatively, as the number of fee payers is reduced, costs increase for each remaining participant. A NCDENRFbcycling ':�pecialist has spoken previously to the B= as well as other recycling professionals, who have indicated the weaknesses of the so called "Opt -In" or subscription (fee for service) type recycling program. 10 Please note that it will take 5 -6 months to establish an opt -out or subscription type service for rural curbside/ roadside recycling. . 9. Would a Solid Waste Service District funding option or an opt -out (or subscription) fee for service option result in the most recyclable materials being recovered and move Orange County the furthest toward its61 %waste reduction goal? Whichwould cost the least per unit served? Based on evidence from other jurisdictions (both North Carolina and out of state) a subscription fee for service option of funding the recycling collection service would yield the least quantity of recovered recyclables and result in the greatest unit cost for users of the program. The Solid Waste Service District would be the least costly per parcel served. 10. What does it mean that handicap service will continue? Both the Urban and Floral Curbside Fbcycling programs maintain a special services option for handicapped and elderly residents. This service requires the collector to go to the resident's home at an agreed upon location and collect their receptacle, empty it into the truck and return the empty container to the home. 11. Hasthe value of the property within the proposed district been analyzed? The total valuation of the district is located at the bottom of the map and is calculated at $4,478,900,424. 12. Is the current participation rate for the rural program 57 0/o? If so, how many are estimated as not using the service? Yes, according to the latest survey of four rural routes. About 5,800 are estimated to be using the convenience centers, not recycling or recycling through alternative means. 13. How many parcels in the proposed district are not going to be paying the tax but will be receiving the service? There are 631 tax exempt properties located in the proposed district that will not be paying the district tax. It is understood that any of those parcels that contain buildings that generate recyclableswe would be required by statute to receive the service. 14. If the Fbral Program participation rate is 57 %, what would be the participation rate in the Urban Program for comparison? 11 The participation rate in the Urban Program is estimated to be 90% Utilization of the new roll cartsfitted with RFIDtagswill allow much more accurate calculationsof set out and participation rates. 15. When roll carts are implemented will people be required to use them? Due to the variability in the county such as geography and other differences consistent with rural living, accommodations will have to be made. When a resident expresses a desire to continue using a bin and does not wish to use a roll cart, they will be allowed to use what they think best suits their situation. They will be allowed to choose, although in many instancesthey will be encouraged to try a roll cart. 16. If residents will be allowed to continue to use bins if they choose rather than be required to use roll carts, and if only 57% of residents will be participating, how many roll cartswill be purchased? It is estimated that 7,000 carts would be purchased initially. Prior to implementation a more thorough assessment will be performed to match the type of recycling receptacle with resident needsand requests.