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Home My WebLink AboutAgenda - 06-03-2014 - 7f1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 3, 2014 Action Agenda Item No. 7 -f SUBJECT: Funding for Orange County's Rural Curbside Recycling Programs DEPARTMENT: Solid Waste /Recycling PUBLIC HEARING: (Y /N) No ATTACHMENT(S): INFORMATION CONTACT: May 13, 2014 Abstract — Issues and John Roberts, 245 -2318 Funding Options for Orange County's Michael Talbert, 245 -2308 Recycling Programs Gayle Wilson, 968 -2885 PURPOSE: To approve a funding source for Orange County's Rural Curbside Recycling Program. BACKGROUND: On May 13, 2014 the Board discussed issues and funding options for the County Rural Curbside Recycling Program and provided direction to staff (see Attachment). A majority of the Board agreed to continue Rural Curbside Recycling for Fiscal 2014/2015, to serve the existing 13,700 customers and add as many new customers as possible with existing resources. The Board requested to review three funding Options, listed below, for Fiscal 2014/2015. On May 27, 2014 Chair Barry Jacobs & Vice Chair Earl McKee add a fourth Option to be considered by the Board (detailed as Option #2 below). 1. Fund Rural Curbside Recycling Program for Fiscal 2014/2015 with Landfill Reserves. To fund $728,260 from Solid Waste Unrestricted Reserves which were $3,082,630 as of June 30, 2013. 2. Fund Rural and Urban Curbside Recycling Programs for Fiscal 2014/2015 with Landfill Reserves. To fund $2,090,526 from Solid Waste Unrestricted Reserves which were $3,082,630 as of June 30, 2013. 3. Eliminate all Recycling and Convenience Center fees and raise the County's property tax rate. To replace all revenues from fees would equal $6,049,228 and require a property tax increase of 3.77 cents. 4. Increase the Solid Waste Convenience Center fees to cover all or part of the $1,856,543 transfer from the General Fund to Solid Waste to fund Convenience Center Operations - see the table below. Convenience Center Increase to Increase to Increase to Increase to Fee Category Current 33% of 50% of 67% of 100% of Fee Remaining GF Remaining GF Remaining GF Remaining GF Contribution Contribution Contribution Contribution Balance Balance Balance Balance Rural $40 $61 $72 $83 $102 Urban $20 $31 $36 $41 $ 51 Multi - Family $ 4 $ 6 $ 7 $ 8 $ 10 Revenue $1,202,292 $1,840,754 $2,160,833 $2,480,912 $3,062,552 (97% Collection Rate) FINANCIAL IMPACT: The financial impact to the County is: • to use $728,260 of Solid Waste Unrestricted Reserves for Option (1) above; • to use $2,090,526 of Solid Waste Unrestricted Reserves for Option (2) above; • to replace all revenues from Solid Waste Recycling and Convenience Center fees and raise the property tax rate by 3.77 cents from 85.8 cents to 89.57 cents to generate an additional $6,049,228 for the Solid Waste Fund for Option (3); • to increase the Solid Waste Convenience Center fees to cover all or part of the $1,856,543 transfer from the General Fund to Solid Waste to fund Convenience Center Operations for Option (4), see the table above. RECOMMENDATION(S): The Manager recommends that the Board fund the Rural Curbside Recycling Program by using $728,260 of Solid Waste Unrestricted Reserves for Fiscal 2014/2015 (Option 1 above). 3 COPY ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: Way 13, 2014'i Action Agenda Item No. 4 SUBJECT: Issues and Funding Options for Orange County's Recycling Programs DEPARTMENT: Solid Waste /Recycling PUBLIC HEARING: (Y /N) No ATTACHMENT(S): (Previously Provided) Abstract Agenda Item 7 -f from May 8, 2094 Board Meeting — Issues and Funding Options for Orange County's Recycling Programs Board members may find it beneficial to bring the May 8, 2014 meetinq paper copies of Item 7 -f to the May 13t work session as reference documents. Item 7 -f can also be accessed electronically at http : / /www.co.orange.nc.us /occierks /1405 08.pdf (starting on electronic page 445 of the link INFORMATION CONTACT: John Roberts, 245 -2318 Michael Talbert, 245 -2308 Gayle Wilson, 968 -2885 PURPOSE: To discuss issues and funding options for Orange County Recycling Programs. BACKGROUND: The County's Reduce, Reuse & Recycle (3 -R) Fees consists of one annual recycling fee that is billed in conjunction with the annual property tax. The fee is a Basic Availability Fee of ($47 /year) that is charged to all improved properties county -wide and funds various recycling operations such as the county Toxicity Reduction Improvement Program (Household Hazardous Waste, batteries, waste oil, electronics, etc.), recycling drop -off sites, recycling at solid waste convenience centers, education and outreach, enforcement, planning, etc. It is anticipated that the Towns will levy an Urban Curbside Fee ($59 /year) and a Multi - family Fee ($19 /year) to improved residential properties within incorporated municipalities and funds weekly curbside recycling service. Not related to recycling, the County also assesses a county -wide Solid Waste Convenience Center Fee that is billed in conjunction with the annual property tax. The Unincorporated Areas Fee is ($40 /year /Household), Incorporated Areas Fee is ($20 /year /Household), and Multi- family Fee is ($4 /year /multi - family unit). This basic Solid Waste Convenience Center Fee covers a portion of the operating costs of the County's five (5) Convenience Centers. M At the May 8, 2014 regular meeting, the Board expressed a desire to step back and review all options to fund the County's rural curbside recycling program at the May 13, 2014 Work Session. The Board noted that it was important to include the County's partners to find a comprehensive county -wide solution to recycling, which could be a component of a new Solid Waste Interlocal Agreement. It is desirable that an equitable county -wide recycling solution will be implemented by Fiscal 2015/2016 to preserve Solid Waste reserves to fund future Closure /Post Closure costs. Recycling Options that were available and discussed in 2013 have not changed. However; the Towns have agreed to levy both an Urban and Multifamily curbside recycling fee for Fiscal 2014/2015. The Board requested the following information: Issues to be discussed at May 13, 2014 Work Session • Discussion of Frequently Asked Questions from the Public Hearings (see Attachment 9) • Does the County want to continue Rural Curbside Recycling, and if so, what is the customer base - the existing rural district (13,700 customers) and /or additional customers • How does the County fund Rural Curbside Recycling for Fiscal 2014/2015 • Recycling and Solid Waste issues with the County's partners • Other ways to provide recycling services and look at options • New Solid Waste Interlocal Agreement • A stable funding source for recycling that is fair and equitable • Discuss different options for servicing high density rural residential clusters. including costs /benefit analysis Decisions by July 1, 2014: • Does the County want to continue Rural Curbside Recycling, and if so, what is the customer base, the existing rural district (13,700 customers) and /or additional customers • How does the County fund Rural Curbside Recycling for Fiscal 2014/2015 FINANCIAL IMPACT: There is no financial impact to the County in discussing funding options for the County's Recycling Programs. RECOMMENDATION(S): The Manager recommends that the Board receive the information and provide guidance to staff. Board members may find it beneficial to bring the May 8, 2014 meeting paper copies of Item 7 -f to the May 13f work session as reference documents. Item 7 -f can also be accessed electronically at http: / /www.co. orange .nc.us /occierks /140508.pdf (starting on electronic page 445 of the link).