HomeMy WebLinkAboutAgenda - 02-16-2017 - 2 - Solid Waste Five Year Financial Plan and Cost Study 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: February 16, 2017
Action Agenda
Item No. 2
SUBJECT: Solid Waste Five Year Financial Plan and Cost Study
DEPARTMENT: Finance and Administrative
Services
ATTACHMENT(S): INFORMATION CONTACT:
A. SCS Engineers Final Report Bonnie Hammersley, (919) 245-2300
B. SCS Engineers Powerpoint Gary Donaldson, (919) 245-2453
C. Proposed Fee Options Powerpoint Gayle Wilson, (919) 968-2885
PURPOSE: To review Solid Waste Fee options as part of a Five Year Solid Waste Financial
Plan to achieve financial resiliency.
BACKGROUND: The Department of Finance and Administrative Services determined that the
current programs fee of $107 was not sufficient to meet Solid Waste expense requirements in
subsequent fiscal years attributed in part to a dramatic shift within the Recycling industry. From
fiscal years 2010-11 to the present, the recycling market has undergone significant changes
which have resulted in a decrease in recycling revenues to the Solid Waste Enterprise Fund.
During the same period, operating expenses for recycling operations processing has increased,
as evidenced by the tons recycled. The chart below illustrates the decrease in recycling
revenues and the increase in tons recycled from FY 2010-11 through FY 2015-16. The Solid
Waste Enterprise Fund has had to utilize fund balance to offset the decline in recycling
revenues.
16,000 $900,000
15,500 $800,000
15,000 $700,000 z
I $600,000 Q
14,500 $500,000 '
cro
14,000 $400,000
<
13 500 $300,000
$200,000 fD
13,000
$100,000
12,500 $0
FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
Fiscal Year
—111—Tons f$ Revenue
2
As a result of the unstable state of the recycling market, the County retained an independent
third party consultant, SCS Engineers to confirm its' internal assessment by conducting a solid
waste cost of services and rate study (Attachments A and B). SCS Engineers in collaboration
with County staff developed a Five Year Financial Plan to ensure fiscal resiliency to the Solid
Waste Enterprise Fund on a long-term basis while at the same time maintaining the County's
record and reputation for achieving high waste reduction targets and landfill diversion.
The financial analysis concluded that an increased program fee is necessary to achieve a
sustainable and recurring revenue stream for the Solid Waste Enterprise Fund. The suggested
method for increasing the fee is to use a multi-faceted approach with a General Fund and a
Solid Waste Fund Balance contribution to modestly increase the program fee. On January 30,
2017, the County Manager presented to the Solid Waste Advisory Group (SWAG) two options
that used the multi-faceted approach (Attachment C). Also, the Community Development
Director will develop a communication plan to inform residents of the Solid Waste program fee.
FINANCIAL IMPACT: There is no financial impact in receiving these reports and presentation.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to
this item:
• GOAL: ENABLE FULL CIVIC PARTICIPATION
Ensure that Orange County residents are able to engage government through voting and
volunteering by eliminating disparities in participation and barriers to participation.
RECOMMENDATION(S): The Manager recommends that the Board receive this report and
provide questions and feedback.
Attachment A 3
SCS ENGINEERS
oaf'
- *^ .
Final Report
Financial Plan and Rate Study for
Solid Waste Enterprise Fund
Prepared for:
ORANGE COUNTY
NORTH CAROLINA
Solid Waste Management Department
200 South Cameron Street
Hillsborough, NC 27278
(919) 732-8181
Prepared by:
SCS ENGINEERS, PC
15521 Midlothian Turnpike, Suite 305
Midlothian, Virginia 23113
(804) 378-7440
November 4, 2016
File No. 02216202.00
Offices Nationwide
www.scsengineers.com
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Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
Table of Contents
Section Page
Executive Summary ES-1
Project Objectives ES-1
Enterprise Fund ES-1
Rate Model Scenarios ES-3
Model Results ES-3
Findings and Recommendations ES-4
1.0 Introduction 1
1.1 Project Scope of Work 1
1.1.1 Data Collection and Review 1
1.1.2 Staff Communications 2
1.2 Solid Waste Ordinances 2
1.2.1 Regulated Recyclable Materials Ordinance 2
1.3 Collection of Solid Waste and Recyclable Material 2
1.3.1 County Solid Waste Collection Program 3
1.3.1.1 Residential 3
1.3.1.2 Commercial 5
1.3.1.3 Institutional 5
1.3.2 County Recyclable Material Collection Program 5
1.3.2.1 Residential 5
1.3.2.2 Commercial 7
1.3.2.3 Institutional 7
1.3.3 OCR Recyclable Material Processing and Marketing 8
1.4 Solid Waste Programs Fee 8
1.5 Collected Recyclable Material Tonnage and Revenue 8
1.6 Solid Waste Disposal 9
1.7 Household Hazardous Waste and Electronics Recycling 10
1.8 Food Waste Collection 10
1.9 County Solid Waste Management Department Staffing 11
1.10 Vehicles 11
1.11 Public Education and Outreach 12
2.0 Cost of Service Analysis 14
2.1 Budget and Management Practices Overview 14
2.1.1 Enterprise Fund 14
2.1.2 Billing 15
2.1.3 Budget Overview 16
2.1.4 Reserves 18
2.1.5 Rate Model 18
2.1.6 Methodology Overview 18
2.1.7 Model Scenarios 19
2.1.8 Model Results 20
2.1.9 Division Budgetary Leveling 20
3.0 Potential Solid Waste Operational Changes 21
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Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
3.1 Optimize Collection Center Hours/Days of Operations 21
3.1.1 Collection Center Use by Month 21
3.1.2 Collection Center Use by Day of Week 21
3.1.3 Collection Center Use by Time of Day 22
3.2 Consider a Reduction in Curbside Recyclables Collection Frequency 23
3.2.1 Other Considerations 23
4.0 Potential Solid Waste Program Financing Alternatives 25
4.1 Collections of Assessed Fee 25
4.2 Modification of Organics Collection Program Funding Structure 26
4.3 Major Weather Event/Storm Debris Handling 26
4.4 Regulated Recyclable Materials Ordinance 26
5.0 Findings and Recommendations 28
5.1 Revenue Increase Strategies 28
5.2 Expense Reduction Strategies 29
5.3 Rate Benchmarking 29
6.0 References 31
List of Exhibits
No. Page
Exhibit 1. Solid Waste and Recycling Centers by Location and Customer Counts by Fiscal
Year 3
Exhibit 2. Solid Waste and Recycling Center Locations 4
Exhibit 3. Solid Waste and Recycling Center Customer Counts by Fiscal Year 5
Exhibit 4. 24-Hour Recycling Drop-off Sites by Location 6
Exhibit 5. 24-Hour Recycling Drop-off Site Locations 7
Exhibit 6. Recyclable Material Tonnages and Revenue 9
Exhibit 7. Orange County Solid Waste Management Department Website 12
Exhibit 8. Orange County Solid Waste Management on Social Media 13
Exhibit 9. Revenue Tier Streams and Associated Accounts 15
Exhibit 10. Commissioner Approved Fee Schedule - FY 2015-16 16
Exhibit 11. Distribution of Department's Operating Revenues and Expenses by Fiscal Year 17
Exhibit 12. Scenario Modeling Results - Projected Fund Budgetary Gap 20
Exhibit 13. Recycling Center Customers by Day of Week in FY 2015-16 22
Exhibit 14. Recycling Center Customers per Hour by Day of Week FY 2015-16 22
Exhibit 15. Recycling Center Customers by Hour of Day in FY 2015-16 23
Exhibit 16. Average Personnel Direct-Cost per Person 24
Exhibit 17. Budgeted Solid Waste Management Department Revenue Components as
Portions of Total Revenue (FY 2016-17) 25
Exhibit 18. Tons Disposed at Orange County C&D Landfill by Year 27
Exhibit 19. Comparison of Annual Fees 30
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Appendices
A Department Organizational Chart
B Department Fleet Asset List
C List of Model Assumptions
D Estimated Department Revenue Projections
E Estimated Department Expense Projections
F Financial Model Output
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Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
EXECUTIVE SUMMARY
In March 2016, Orange County,North Carolina (County)retained SCS Engineers (SCS)to
conduct a solid waste cost of services and rate study(Study) and to develop a Financial Plan for
the County's Solid Waste System(System). Based on data and information provided by County
staff, a Pro Forma rate model (Rate Model)was developed, which enabled SCS to prepare
projections of financial performance of solid waste and recyclable material collection and
disposal for the selected planning period(FY 2016-17 through FY 2020-21) and model different
possible rate structures.
PROJECT OBJECTIVES
The overall objective of a cost of service and rate study is to calculate the solid waste fees and
assessments required to adequately recover the costs of providing solid waste and recycling
services to the County's residents, businesses, and other institutions. Based on its solid waste
industry experience, SCS developed a series of critical tasks that provided a foundation for the
conduct of the Study and development of the Financial Plan. This methodology is discussed in
Section 2 of this report.
Enterprise Fund
The County has established the Solid Waste Enterprise Fund(Fund)to account for all Solid
Waste Management Department(Department) solid waste and recycling program operations,
which are financed and operated in a manner similar to private business enterprises. The Fund
includes potential revenue from approximately 33 distinct sources (line items under the Budget
Accounts),which can be associated with one or more of the four cost centers (Divisions)within
the Department. The Fund includes potential expenses from approximately 47 distinct general
sources (line items under the Budget Accounts) and five capital sources from five accounts,
which can be associated with one or more of the Divisions within the Department.
The Solid Waste Program Fee is a single, county-wide fee assessed on each improved property
within the County, including the municipalities and the portion of the Town of Chapel Hill
located within Durham County. The current fee is $107.00 per parcel annually, but is adjusted
annually as part of the Department's budgeting process based on estimated system expenditures,
minus all revenue, and divided by the number of taxable parcels.
The table below(and also in Section 2.1.3, Exhibit 11) below shows the distribution of the
Department's revenues and expenses for the past four fiscal years and the budget for current FY
2016-17 by division. As shown, annual expenses have increased from the previous to the current
fiscal year with the Solid Waste Enterprise Fund running a net deficit each year since FY 2012-
13.
The table also shows the amount and percentage of the revenues over the past 4 years that were
made up of transfers from the General Fund and Appropriated Fund Balance. The final row of
the exhibit shows the additional net revenues and deficits added to the amount transferred from
the General Fund.
ES- 1
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Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
Distribution of Department's Operating Revenues and Expenses by
Fiscal Year
FY 2015-161 FY 2015-162
FY 2012-13 FY 2013-14 FY 2014-15 Projected Preliminary FY 2016-173
Budget Actuals
Revenues by Division($)
Environmental Support 106,047 104,188 770,848 150,000 NA 1,369,717
Landfill Services 3,716,514 1,187,249 1,086,812 1,167,217 NA 1,100,382
Recycling Services 4,732,514 3,512,839 3,803,287 5,531,343 NA 3,925,073
Sanitation Services 2,262,285 3,217,411 4,297,213 4,602,133 NA 3,814,743
Other(Appropriated Fund Bal.) NA NA NA 630,503 NA 1,780,040
Total Department Revenues 10,816,933 8,021,688 9,958,160 12,081,196 10,078,956 11,989,955
Amount that is Transfer from General
1,594,226 1 869 496 1,856,543 1 718 018 1,718,018 2 004 719
Fund(Included Above)
Amount that is from Appropriated NA NA NA 630,503 NA 1,780,040
Fund Balance(Included Above)
Total Revenue Not Generated by
1,594,226 1 869 496 1,856,543 2 348 521 1,718,018 3 784 759
Solid Waste Enterprise Fund
Portion of Revenue Not Generated by 14.7 23.3 18.6 19.4 17.0 31.6
Solid Waste Enterprise Fund (%)
Expenses by Division($)
Environmental Support 2,098,096 2,268,392 2,487,479 2,169,700 NA 2,237,464
Landfill Services 2,218,634 3,032,197 2,347,938 1,410,322 NA 1,117,414
Recycling Services 2,752,628 4,875,031 4,291,804 5,594,727 NA 5,450,893
Sanitation Services 3,289,081 2,302,832 2,570,585 2,906,448 NA 3,184,184
Total Department Expenses 10,358,439 12,478,452 11,697,806 12,081,196 10,790,064 11,989,955
Net Revenues(+)/Deficits(-) +458,494 -4,456,764 -1,739,646 0 -711,108 0
Notes:
1. Projected past budgetary figures provided by County staff to SCS.
2. Unaudited, preliminary actuals based on discussions with County staff (subject to change).
3. Approved budgetary figures,with Program Fee revenue applied proportional to expenses across Divisions
(see leveling factors given in Appendix E). The $2,004,719 in revenue from the General Fund was allocated
to the Sanitation Services Division based on historic precedent.
4. This table reflects the resulting restructuring of expense and revenue allocations between the Divisions which
occurred as a result of the closure of the Orange County Landfill in FY 2012-13.
5. The Solid Waste Programs Fee was reallocated for distribution from the Recycling Services Division to the
Environmental Support Division in FY 2016-17.
ES-2
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Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
RATE MODEL SCENARIOS
SCS developed two Rate Model scenarios to evaluate impacts to the Enterprise Fund financial
situation over the 5-year planning period. Depending on the individual scenario, the Model
assesses net revenue needs if the Program Fee, other revenues, and operating costs equal those in
the Budget for FY 2016-17 with inflation factors applied, known capital items accounted for, and
other adjustments made to specific line items as detailed in Appendix C:
• Scenario 1 — Scenario 1 assumes status quo for the Department Solid Waste Program
Fee ($107 per year). This scenario is intended to be used as a baseline or"Status
Quo" scenario to enable comparison with Scenario 2.
• Scenario 2—This scenario serves as an assessment of the required increase in the
Program Fee to balance projected operating expenses and revenues for solid waste
and recycling services. Scenario 2 assumes the Program Fee balances the Fund's
annual budget if other revenues and operating costs equal those projected in the
Budget for FY 2016-17, dependent on the sub-scenario. This iteration serves as a
"break-even" analysis.
Model Results
The table below(and also in Section 2.1.8, Exhibit 12) shows the Modeled Budgetary Gap for
Scenario 1 and the break-even Program Fees for Scenario 2 for FY 2016-17 to FY 2020-21. Note
that the Program Fee was back-calculated using an optimization algorithm. Complete financial
model results highlighting the Fund's projected annual net revenue/deficits are presented in
Appendix F.
Scenario Modeling Results
Scenario FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
1 — Status Quo Budgetary
Gap with $107 Program ($1,780,040) ($2,015,497) ($2,064,603) ($2,345,290) ($2,593,011)
Fee
2— Break Even Program
Fee with $0 Budgetary $137 $140 $141 $145 $148
Gap
Note: Negative values indicate a projected gap.
ES-3
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Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
FINDINGS AND RECOMMENDATIONS
Our findings and recommendations, including revenue increase strategies, expense reduction
strategies, and rate benchmarking from the Study are presented in Section 5 and summarized
below. SCS offers the following findings and recommendations for the County's consideration:
• As outlined in Scenario 1, the Fund's current financial structure is unsustainable and
maintaining the current Program Fee amount($107) along with the Status Quo
program services will yield significant annual deficits over the next 5-year period,
even with the current practice of General Fund contributions.
• The exercise of allocating monies from the Fund's balance ("Reserves")to cover the
annual budget deficit each year will deplete the entire Fund balance in approximately
5 years at the current rate of spending.
• The Pro Forma Rate Model developed as part of this cost of service study should be
updated annually and used for long-term financial forecasting of the Fund and to
evaluate the likely impact of proposed Department operational changes.
• Based on a cursory review of the program, SCS did not identify any notable
inefficiencies within the Department operations. SCS recommends the County
conduct a more in-depth review of its program on a routine basis to identify
opportunities for revenue increase and expense reduction.
ES-4
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Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
1 . 0 INTRODUCTION
In March 2016, Orange County,North Carolina (County)retained SCS Engineers (SCS)to
conduct a solid waste cost of services and rate study(Study) and to develop a Financial Plan for
the County's Solid Waste System. Based on data and information provided by County staff, a
Pro Forma rate model (Rate Model)was developed, which enabled SCS to prepare projections of
financial performance of solid waste and recyclable material collection and disposal for the
selected planning period(FY 2016-17 through FY 2020-21).
Orange County Solid Waste Management Department (Department) solid waste and recycling
program operations are organized under the following cost centers, or Divisions:
• Environmental Support Services
• Landfill Services
• Recycling Services
• Sanitation Services
The Environmental Support Services Division consists of various Department support elements
including planning and administrative functions, utilities, maintenance, education and outreach,
and enforcement. The Landfill Services Division is responsible for the operation of the
construction and demolition (C&D) landfill, scales and weighing, incoming waste materials
inspections, maintenance and monitoring of the three closed landfills, oversight of temporary
storm debris management sites, and general Eubanks Road site grounds maintenance and
security. The Recycling Services Division manages a variety of recycling programs, services,
and facilities. Finally,the Sanitation Services Division is responsible for Waste and Recycling
Center operations, collection of waste from County buildings and schools, and the collection of
bulky waste items.
1 . 1 PROJECT SCOPE OF WORK
The overall objective of a cost of service and rate study is to calculate the solid waste fees and
assessments required to adequately recover the costs of providing solid waste and recycling
services to the County's residents, businesses, and other institutions. Based on its solid waste
industry experience, SCS developed a series of critical tasks that provided a foundation for the
conduct of the Study and development of the Financial Plan. This methodology is discussed in
Section 2 of this report.
1 . 1 . 1 Data Collection and Review
The County provided historical and background information on operations and practices. This
included:
• Detailed financial reports and budgets
• Solid waste and financial policies
• Historical waste and recyclable material flow
• Personnel rosters and organizational charts
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Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
• Vehicle improvement plans
• Vehicle maintenance plans and anticipated costs
• Solid waste agreements
• Planned and potential capital improvement projects
• Program fee drivers, memorandums, and other narratives
1 . 1 .2 Staff Communications
SCS held a project kickoff teleconference to initiate the Study, which provided a forum to
confirm the scope of services, discuss data needs, and identify key issues for County staff.
During the course of the Study, SCS conducted a series of additional conference calls with
County staff managing different facets of the overall System. These conference calls, along with
routine email communications, gave SCS an opportunity to review Study progress, verify overall
assumptions, and receive useful input from County staff. In addition, SCS representatives gave a
presentation of initial Study findings at a County Manager's Meeting on 5/10/16 as well as a
meeting of the Solid Waste Advisory Group (SWAG), a group of public and private solid waste
stakeholders from various County and Town organizations on 5/25/16. SCS met with the County
Manager and other County leaders again on 8/3/16 to review the financial analysis and
conclusions and recommendations from the study.
1 .2 SOLID WASTE ORDINANCES
Chapter 34 of the County Code contains the County's solid waste ordinances. Ordinances fall
under three articles related to general solid waste topics, collection and disposal, and regulated
recyclable material.
1 .2. 1 Regulated Recyclable Materials Ordinance
Of particular note is the Regulated Recyclable Materials Ordinance (RRMO), which went into
effect on October 1, 2002. The RRMO requires that C&D projects have a waste management
plan in place. It also mandates that certain bulky materials such as scrap metals, clean wood,
pallets, and corrugated cardboard from commercial waste streams be recycled and not disposed
of in a landfill. Applications for self-haul of recyclable material are available through the
Department for a fee. There is also a charge of$25 per vehicle for a Collector's License which is
applied to a vehicle used to haul C&D waste within the County with a Gross Vehicle Weight of
greater than 9,000 pounds. Open burning of solid waste and C&D is prohibited within the
County.
1 .3 COLLECTION OF SOLID WASTE AND RECYCLABLE
MATERIAL
Collection of solid waste and traditional recyclable material (bottles/cans, mixed paper, OCC,
etc.) occurs through a variety of facets (curbside collection, staffed drop-off centers, 24-hour
drop-off centers, etc.) within Orange County. Orange County is somewhat unique in the
municipal world in that it operates municipal curbside recyclable material collection programs
but not curbside solid waste collection. Communities in the United States tend to rely on private,
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Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
solid waste haulers to provide both of these collection services for their citizens. Many urban,
metropolitan municipal solid waste departments continue to provide collection services using
municipal employees. Nationally, a large majority of the remaining solid waste programs have
transitioned to contracted private haulers,primarily as a cost and risk reduction opportunity.
1 .3. 1 County Solid Waste Collection Program
The County provides solid waste collection services to its residents through drop-off collection
facilities and governmental institutions via direct collection. Commercial solid waste collection
is provided through private enterprise within Orange County.
1.3.1.1 Residential
The Department does not provide curbside solid waste collection. Solid waste collection services
are provided to County residents at the five drop-off Solid Waste and Recycling Centers located
throughout Orange County(refer to Exhibit 1 and Exhibit 2). Municipal Solid Waste (MSW),
scrap tires, white goods, scrap metal, clean wood waste,yard waste, and bulky waste is handled
by the Sanitation Services Division at these sites.
Exhibit 1 . Solid Waste and Recycling Centers by Location and
Customer Counts by Fiscal Year
Center Letter Address FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16
1514 Eubanks Rd,
Eubanks A Chapel Hill, NC 154,760 158,637 161,128 126,405 121,467
27516
1616 Ferguson Rd,
Ferguson B Chapel Hill, NC 94,535 88,535 89,867 71,200 72,151
27516
6705 Bradshaw
Quarry Rd,
Bradshaw C Mebane, NC 35,376 38,265 40,825 37,888 39,113
27302
7001 High Rock
High Rock D Rd, Efland, NC 68,582 79,289 70,992 68,102 66,747
27243
3605 Walnut
Walnut Grove Church Rd,
E
Grove Hillsborough, NC 154,238 117,743 133,054 142,485 134,829
27278
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Orange County, NC
Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
Exhibit 2. Solid Waste and Recycling Center Locations
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Note that the Walnut Grove Church Road Center was modernized into a"District Center" in
2013 via paving as well as the installation of compactors, dual loading heights, household
hazardous waste (HHW) collection, clothing drop off, plastic bag recycling, and food waste
collection containers. Additional Solid Waste and Recycling Centers are being considered for
future modernization, including the Eubanks Road Center which is slated for reconstruction into
a District Center.
The Department collects data on Solid Waste and Recycling Center customer attendance through
continuous customer counts. The customer counts are shown in tabular format in Exhibit 1 and in
graphical format in Exhibit 3.
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Orange County, NC
Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
Exhibit 3. Solid Waste and Recycling Center Customer Counts by
Fiscal Year
180,000 - — 520,000
160,000 - 500,000 n
140,000 o —0—Bradshaw- 480,000
120000 • m
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100,000 - 460,000 c
" Ferguson
E 80000
,
- 440,000 High Rock
60000
- 420,000 O . )It■Walnut Grove
40,000
•20,000
- 400,000 Z --TTotal
0 380,000
FY 11-12 FT 12-13 FY 13-14 FY 14-15 FY 15-16
1.3.1.2 Commercial
The County does not provide solid waste collection services for its commercial establishments.
Commercial waste from businesses and multi-family residences (e.g., apartments and
condominiums) is collected by a combination of national and regional private companies and
billed directly to customers by these companies.
1.3.1.3 Institutional
Solid waste collection services are provided to County buildings by the County's Sanitation
Services Division. The Division also collects waste from the Orange County schools and bulky
waste from both the Orange County schools and Chapel Hill-Carrboro City schools for a fee.
These contracts with the school systems account for a portion of the revenue into the Solid Waste
System.
1 .3.2 County Recyclable Material Collection Program
Recycling services are currently administered within the County by Orange County Recycling
(OCR), a division of the Department. In 1997, Orange County and the incorporated
municipalities of Chapel Hill, Carrboro, and Hillsborough each adopted a solid waste reduction
goal of 61%per capita. The efforts of OCR have resulted in one of the top solid waste reduction
rates in the state of North Carolina.
1.3.2.1 Residential
Orange County's first recycling program commenced in 1987 with the construction of five
unstaffed drop-off sites which accepted glass bottles, aluminum cans, and newspapers. Since that
time, recycling has expanded in the County to include additional recyclable material collection at
the Solid Waste and Recycling Centers and curbside collection in both urban and rural areas.
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Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
Urban curbside collection began within the County in the Towns of Chapel Hill, Carrboro, and
Hillsborough by a private contractor in 1988. Weekly urban curbside recyclables collection is
now provided by OCR via a contracted private hauler in the three towns and the portion of
Chapel Hill located in Durham County. Residential curbside service began in select rural areas of
Orange County in 1993, and in 2015 the Department commissioned a collection route
optimization study which also assessed the feasibility of implementing curbside recyclables
collection in rural households which were not previously offered the service. The study
concluded that the new households could be incorporated in a single phase and in 2016 the
remaining 6,800 rural households which previously did not receive curbside recyclables
collection service were added to the rural curbside program.
All County residents may drop off recyclable materials at the five Solid Waste and Recycling
Centers located throughout the County or the five 24-Hour Recycling Drop-off Sites as shown in
Exhibit 4 and Exhibit 5.
Exhibit 4. 24-Hour Recycling Drop-off Sites by Location
Center No. Address
Cedar Falls Park 1 401 Weaver Dairy Road, Chapel Hill, NC 27516
University Mall 2 201 Estes Drive, Chapel Hill, NC 27514
Meadowmont 3 Hwy 54 East (behind Harris Teeter), Chapel Hill, NC 27517
Carrboro Plaza 4 104 NC 54, Carrboro, NC 27510
Hampton Pointe 5 625 Hampton Point Blvd, Hillsborough, NC 27278
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Orange County, NC
Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
Exhibit 5 . 24-Hour Recycling Drop-off Site Locations
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1.3.2.2 Commercial
Orange County took over commercial recyclables collection from a private contractor in 2000.
County commercial recycling services are provided at no direct cost to participating businesses
at select commercial recycling locations. The County provides carts and collection services to the
participating businesses. Commercial establishments may also drop off old corrugated cardboard
(OCC) for no charge at the five 24-Hour Recycling Drop-off Sites if they produce fewer than 50
boxes per week or at the Landfill where there is no limit.
County commercial establishments may also contract with private contractors for recyclable
material collection. Orange County provides technical assistance to local businesses and other
non-residential entities on request at no charge.
1.3.2.3 Institutional
Recyclable material collection services are provided by OCR to local, state, and government
buildings; pedestrian containers located in area parks and downtown Chapel Hill, Carrboro, and
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Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
Hillsborough; convenience stores; and gas stations. OCR also collects recyclable material twice
weekly from the Orange County schools (a service started in 2010) and Chapel Hill-Carrboro
City schools (2011) for a fee. Contracts with the school systems and other municipal sources
account for a portion of the revenue into the Solid Waste System.
1 .3.3 OCR Recyclable Material Processing and Marketing
All collected recyclable material is consolidated at the recycling area of the Orange County
Landfill. The recycling area consists of a large concrete pad(about 15,000 square feet)that is
partially covered upon which collected recyclables are dumped from the collection vehicles.
Waste Industries, the private hauler contracted to collect recyclable material curbside from urban
residences, delivers the recyclables to the recycling area at the Landfill. Prior to June 2012 a
two-stream program strategy was employed in which fiber was transferred and sold to Sonoco in
Durham, whereas commingled cans and bottles were transferred and sold to FCR/ReCommunity
in Greensboro. Beginning in July 2012, the material has been delivered to the recycling area as a
single-stream, inspected by County staff for contaminants, and loaded into walking floor trailers
and transported to the Sonoco MRF in Raleigh where it is processed and sold. Electronics are
transported to GEEP in Durham,NC, and rigid plastics are transported to Blueridge Plastics in
Eden,NC; Sonoco in Raleigh,NC; or other plastics recyclers in the region depending on market
value at the time of discard.
There is one (1) County employee that manages the quality control and loading of single stream
material. Two (2) County employees transport single stream and rigid plastic to their respective
destinations. The electronics recycling vendor currently collects the County-prepared electronic
recycling material at the landfill property and transports the material to their property for further
processing and sale to end users.
1 .4 SOLID WASTE PROGRAMS FEE
The County charges all eligible properties an annual fee of$107.00 for the solid waste and
recycling program services provided by the Department. This Solid Waste Program Fee is
charged to cover the costs of collecting, handling, and disposing and/or recycling of the County's
solid waste and recyclable material. The fee, which was implemented in 2015, is included with
the annual tax bill levied on approximately 61,000 improved properties within the County. As
noted in Section 1.1, one of the purposes of this Study is to estimate the appropriate Fee amount
over the 5-year planning period to cover the costs of the County's solid waste and recycling
programs. A 3-R fee and Waste and Recycling Center fee were implemented as user fees, both of
which have since been replaced by the Solid Waste Programs Fee.
1 .5 COLLECTED RECYCLABLE MATERIAL TONNAGE AND
REVENUE
Exhibit 6 shows the last five fiscal years of recyclable material weight data and revenue. The
data shows that recycling revenues in the County have been decreasing despite increased
collection of recyclable material. This is primarily due to a decrease in the strength of the
commodities market.
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Orange County, NC
Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
Exhibit 6. Recyclable Material Tonnages and Revenue
16,000 — $900,000
I
15,500 — - $800,000
- $700,000
15,000 -
- $600,000 m
a, -<
14,500 - —
- $500,000 f
a, o0
cc
14,000 - $400,000 r2
o m
13,500 - $300,000 m
- $200,000
13,000
- $100,000
12,500 $0
FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15
Fiscal Year
Tons $ Revenue
Source: Orange County, 2015-16
1 .6 SOLID WASTE DISPOSAL
Municipal solid waste collected from the Solid Waste and Recycling Centers and County
institutions is delivered to the City of Durham Transfer Station where the Department is charged
$42.50 per ton. Yard waste is delivered by residents and the area Towns to the Landfill where it
is mulched and sold to the community.
The County owns and operates a Construction and Demolition(C&D) Landfill at 1514 Eubanks
Road. It is located at the site of the old Orange County MSW Landfill (Landfill) which closed on
July 1, 2013, and two other co-located landfills (one C&D unit and one MSW unit). C&D debris,
stumps, land clearing waste, mobile homes, mattresses/box springs (currently transported to
Purpose Recycling), yard waste, clean wood waste, and stockpiled tires are accepted at the
landfill and on-site collection center for various fees. Old corrugated cardboard(OCC), oyster
shells, electronics, residential/commercial tires, large appliances, and scrap metal are accepted
from residents for free.
Department staff strictly enforces the Regulated Recyclable Materials Ordinance at the C&D
Landfill. Contaminated loads (loads containing both recyclable and non-recyclable C&D waste)
brought to the C&D Landfill will be charged double the tipping fee of uncontaminated loads.
Alternatively, the Department staff requires sorting of recyclable materials from contaminated
loads upon arrival at the C&D landfill.
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Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
1 .7 HOUSEHOLD HAZARDOUS WASTE AND ELECTRONICS
RECYCLING
The Recycling Services Division operates Toxicity Reduction Improvement Programs (TRIP) to
collect County residents' household hazardous waste (HHW) and electronics for disposal and/or
recycling. Materials accepted at the five Solid Waste and Recycling Centers include:
• Electronics
• Automotive and Boat Batteries
• Household Batteries
• Oil Filters
• Motor Oil
• Kerosene, transmission fluid, gear oil, heating oil, Coleman fuel, and diesel fuel
• Antifreeze
The Walnut Grove Church Road Solid Waste and Recycling Center accepts HHW items not
accepted at other Solid Waste and Recycling Centers. In addition to the Walnut Grove Center,
Orange County operates a HHW collection center on the Eubanks Road Landfill, soon to be
incorporated into the Eubanks Road Waste and Recycling Center to allow for extended hours of
operation.
Materials accepted only at the HHW Collection Center and Walnut Grove Church Center include
the following: cooking oil; lawn, garden, and pool chemicals; household cleaners and chemicals;
paint, sealant, and solvents; partially-filled aerosol cans; automotive chemicals; automotive
fluids such as gasoline,mixed gas, and brake fluid; fluorescent light bulbs, including tubes and
compact fluorescent lightbulbs (CFLs); thermostats and thermometers containing mercury;
helium tanks (up to 3-gallons); and propane tanks (1 gallon).
Commercial entities may also drop off their HHW if they produce less than 220 pounds per
month at the Eubanks Road HHW Collection Center. Many painting contractors use this facility.
Businesses with more than 75 pounds of HHW must set up an appointment prior to arriving at
the collection center.
1 .8 FOOD WASTE COLLECTION
According to a 2013 survey in the United States, there are more than 214 source-separated
organics collection programs in operation and the effort to separately manage waste organics is
gaining traction in recent years. That number is up from only 20 programs in 2005.
Consequently, Orange County can be considered as an"early adopter."
The County contracts with a private hauler(currently Brooks Contracting of Gladstone,NC)to
collect and compost food waste and other compostable organic material from select local
businesses at no charge. This program accepts source-separated organic materials such as
kitchen and produce department prep waste, post-consumer plate waste, and other compostable
organic materials from local restaurants, grocery stores, and food service establishments for
composting.
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Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
Residents may also drop-off their source-separated food waste into separate containers
designated for composting at the Walnut Grove Church Road Solid Waste and Recycling Center.
This is currently the only waste and recycling center that accepts residential food waste for
composting, although wood waste composting will be incorporated into the Eubanks Road Waste
and Recycling Center upon its completion. Orange County Solid Waste also sells compost bins
for $50.00 apiece at the administration building on Eubanks road.
The compost produced by Brooks meets the Class "A"rating by the State of North Carolina, the
highest regulatory ranking available for compost. The product is suitable for unrestricted use on
agricultural crops, landscaping plants, turf, or ornamentals. It is sold at a cost of$30.00 per yard
to residents. The County also maintains two outdoor composting demonstration sites for
educational purposes, and instructional classes are held at the sites at least four times per year.
Orange County Solid Waste can also help set up or teach composting programs for interested
organizations. These programs are free to Orange County residents and businesses.
1 .9 COUNTY SOLID WASTE MANAGEMENT DEPARTMENT
STAFFING
The Department is responsible for the overall management of the County's solid waste program.
It is currently staffed with approximately 64 total positions. As shown in Appendix A, from a
personnel standpoint,the Department is subdivided into three sections (note this breakdown
differs from the breakdown of administrative Divisions within the department):
• Environmental Support
• Solid Waste Operations
• Recycling Operations
Mr. Gayle Wilson serves as the Solid Waste Management Director. Additional managerial
positions within the Department include Solid Waste Planner, Administrative Officer,
Management and Program Specialist, Solid Waste Operations Manager, Solid Waste Engineer,
Heavy Equipment Mechanic Supervisor, Solid Waste Collection Services Manager,
Environmental Enforcement Supervisor, Recycling Programs Manager, Recycling Programs
Supervisor, and Solid Waste Field Services Supervisor.
1 . 10 VEHICLES
The Department and its contractors provide collection services to residences and businesses
within the County using a combination of trucks for recyclables, residential solid waste (from
collection centers), institutional solid waste, yard waste, food waste, and bulky waste. The
Department has a long-term fleet replacement plan. Appendix B lists the current Department
fleet inventory by division.
The Department maintains a vehicle fleet separate from the main County fleet in regards to
acquisition, maintenance, and utilization, the only department within the County government
infrastructure to do so. A Fleet Management Review was conducted by Chatham Consulting,
Inc., in 2012 which offered observations and recommendations to increase the efficiency of the
operations of the Department fleet. Chatham observed that fleet operations are "Safe &
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Orange County, NC
Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
Economic" and that fleet vehicles are well maintained. The Department is preparing to
commence an additional fleet study with CST Fleet Services to benchmark repair efforts and
maintenance scheduling.
1 . 1 1 PUBLIC EDUCATION AND OUTREACH
The Department deploys a comprehensive environmental education and outreach services
program, which provides information to the public on the range of services the Department
provides, associated costs, and efficiency measures implemented. The Department's efforts
includes providing classes, community talks, brochures, a Department web site (Exhibit 7), social
media(Exhibit 8), and support of volunteer cleanup efforts.
Exhibit 7. Orange County Solid Waste Management Department
Website
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Orange County, NC
Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
Exhibit 8. Orange County Solid Waste Management on Social Media
SOLID WASTE MANAGEMENT
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Government Organization Waste Management 4 Share •••
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Ever wondered how your recyclables get recycled?Here's a first peek into
(919)968-2788
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Orange County, NC
Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
2 . 0 COST OF SERVICE ANALYSIS
Since the cessation of waste acceptance at the County's sanitary landfill in June 2013, the
expenses associated with the County's existing solid waste management and recycling programs
and facilities have exceeded the revenues generated by these programs and facilities. SCS
reviewed historical program and facilities expenses (both operating and capital) as well as the
historical revenues from various sources that have served to cover these expenses for the past
several years. SCS projected the costs necessary to continue implementing these programs and
operate existing facilities over the next 5 years (through FY 2020-21). SCS also projected the
revenues likely to be realized during this timeframe in order to develop a"cost-of-service"
analysis to identify potential funding deficits or surpluses. A brief overview of the Department's
current budget and management practices, along with a description of SCS' assumptions and
findings related to this cost-of-service analysis are discussed below.
2 . 1 BUDGET AND MANAGEMENT PRACTICES OVERVIEW
2. 1 . 1 Enterprise Fund
The County has established the Solid Waste Enterprise Fund(Fund)to account for all
Department solid waste and recycling program operations, which are financed and operated in a
manner similar to private business enterprises. In other words,the County's intent is that the
Fund be managed such that the costs of implementing these programs and facilities (operating
and capital expenses, including depreciation) are covered by the monies in this Fund. Money is
allocated to this Fund through user charges and revenues generated by the solid waste and
recycling programs and facilities supported by the Fund, with limited revenue allocated from the
General Fund.
The Fund includes potential revenue from approximately 33 distinct sources (line items under
the Budget Accounts), which can be associated with one or more of the four cost centers
(Divisions)within the Department. Most of these sources contribute revenue into only one of the
Divisions. However, line items for some sources contribute revenue into multiple Divisions.
For general reference purposes, SCS divided revenue sources into three categories or tiers of
sources; primary, secondary, and ancillary. Exhibit 9 displays the three tiers and core revenue
streams associated with each.
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Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
Exhibit 9. Revenue Tier Streams and Associated Accounts
Tier Definition Example Revenue Accounts
Primary' Greater than $1 Million per County Solid Waste Program Fee, County General
year Fund Contribution, Appropriated Fund Balance
Secondary Greater than $100K per Contribution from Equipment Reserves, Landfill
year but less than $1 Fees, Recycling Tip Fees, Sanitation Waste
Million Collections, Tire Tax Reimbursement, Sale of
Recyclable Material, C&D License/Permit
Ancillary Less than $100K per year Sale of Fixed Assets, White Goods Reimbursement,
Clean Metal and White Goods Recycling, Mulch
Sales, Grants, LFG Recovery, Disposal Tax
Reimbursement, Compost Sales, Mattress Disposal
Fees, etc.
Note: 1. The Appropriated Fund Balance has historically been an Ancillary or Secondary Tier line item account;
however,the FY 2016-17 Preliminary Budget relies on this line item account as a Primary Tier.
The Fund includes potential expenses from approximately 47 distinct general sources (line items
under the Budget Accounts) and five capital sources from five accounts,which can be associated
with one or more of the Divisions within the Department. The four largest contributors to
expenses are Permanent Salaries (22%), Miscellaneous Contract Services (13.8%), Contribution
to Equipment Reserves (11.1%), and Vehicles (6.6%).
Historically, the County General Fund has contributed to the Enterprise Fund budget, accounting
for roughly 65 percent of the Sanitation Division budget following its transfer from the Public
Works Department to the Solid Waste Management Department in FY 2007-08. The reduction of
Enterprise Fund revenue over the past three years or so is attributed to the closure of the MSW
Landfill and the decline of recyclable material prices in the commodities market.
2. 1 .2 Billing
The Solid Waste Program Fee is a single, county-wide fee assessed on each improved property
within the County, including the municipalities and the portion of the Town of Chapel Hill
located within Durham County. The current fee is $107.00 per parcel annually, but is adjusted
annually as part of the Department's budgeting process based on estimated system expenditures,
minus all revenue, and divided by the number of taxable parcels. A collaborative discussion by
the Board of County Commissioners (BOCC) follows this exercise, at which time budgets are
finalized. The Tax Administration Department manages billing and collection of tax payments
for the County, including billing and collection of the Programs Fee. This service incurs charges
by the General Fund to the Solid Waste Enterprise Fund.
The C&D Landfill accepts certain types of waste from commercial and residential customers for
various fees depending on the material. A schedule of fees for various materials as well as other
Program fees can be found in Exhibit 10. These charges are incurred by the customer upon
disposal.
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Exhibit 10. Commissioner Approved Fee Schedule — FY 201 5-1 6
Department/ Destination Current Fee Approved Fee Last
Program Change* Revision
Solid Waste Enterprise Fund
'Solid Waste Programs Fee(30) NA $107.00 New
Landfill 201 3
Construction& Demo $40.00/ton 201 2
Clean Wood/Vegetative Waste $1 8.00/ton 2009
Stumps& Land Clearing Waste $40.00/ton 201 2
Disposal of Mobile Homes $200.00/unit 2010
Conventional Yard Waste Mulch $25.00/3 cubic yard 201 2
Decorative Red Mulch& $28/one cubic yard scoop 2009
Tires(stockpiled tires/no state $1 00.00/ton 1997
Appliances(White Goods) No charge
Scrap Metal No charge
Cardboard No charge
Mattress Recycling Fee $10 per piece 2013
Environmental Support
Regulated Recyclable Materials $25.00/vehicle 2002
Regulated Recyclable Materials $250.00/application 2002
Regulated Recyclable Materials 1 0%of assessed building 2002
Regulated Material Permit- 8%of Applicable Building 2008
Regulated Material Permit- 5%of Applicable Building 2008
Sanitation-School Refuse Collection
6 cubic yard $31.00 2010
8 cubic yard $33.00 2010
Non-scheduled pick-up $40.00 2010
Community Relations/Visitor's Bureau
Occupancy Tax Rate 3%of gross receipts 2008
Note: *Any fee changes will be included in this column; a blank beside each fee means there is
no fee change in FY 2015-16.
2. 1 .3 Budget Overview
Exhibit 11 shows the distribution of the Department's revenues and expenses for the past four
fiscal years and the budget for current FY 2016-17 by division. As shown, annual expenses have
increased from the previous to the current fiscal year with the Solid Waste Enterprise Fund
running a net deficit each year since FY 2012-13.
The exhibit also shows the amount and percentage of the revenues over the past 4 years that were
made up of transfers from the General Fund and Appropriated Fund Balance. The final row of
the exhibit shows the additional net revenues and deficits added to the amount transferred from
the General Fund.
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Exhibit 11 . Distribution of Department's Operating Revenues and
Expenses by Fiscal Year
FY 2015-161 FY 2015-162
FY 2012-13 FY 2013-14 FY 2014-15 Projected Preliminary FY 2016-173
Budget Actuals
Revenues by Division($)
Environmental Support 106,047 104,188 770,848 150,000 NA 1,369,717
Landfill Services 3,716,514 1,187,249 1,086,812 1,167,217 NA 1,100,382
Recycling Services 4,732,514 3,512,839 3,803,287 5,531,343 NA 3,925,073
Sanitation Services 2,262,285 3,217,411 4,297,213 4,602,133 NA 3,814,743
Other(Appropriated Fund Bal.) NA NA NA 630,503 NA 1,780,040
Total Department Revenues 10,816,933 8,021,688 9,958,160 12,081,196 10,078,956 11,989,955
Amount that is Transfer from General
1,594,226 1 869 496 1,856,543 1 718 018 1,718,018 2 004 719
Fund(Included Above)
Amount that is from Appropriated NA NA NA 630,503 NA 1,780,040
Fund Balance(Included Above)
Total Revenue Not Generated by
1,594,226 1 869 496 1,856,543 2 348 521 1,718,018 3 784 759
Solid Waste Enterprise Fund
Portion of Revenue Not Generated by 14.7 23.3 18.6 19.4 17.0 31.6
Solid Waste Enterprise Fund (%)
Expenses by Division($)
Environmental Support 2,098,096 2,268,392 2,487,479 2,169,700 NA 2,237,464
Landfill Services 2,218,634 3,032,197 2,347,938 1,410,322 NA 1,117,414
Recycling Services 2,752,628 4,875,031 4,291,804 5,594,727 NA 5,450,893
Sanitation Services 3,289,081 2,302,832 2,570,585 2,906,448 NA 3,184,184
Total Department Expenses 10,358,439 12,478,452 11,697,806 12,081,196 10,790,064 11,989,955
Net Revenues(+)/Deficits(-) +458,494 -4,456,764 -1,739,646 0 -711,108 0
Notes:
1. Projected past budgetary figures provided by County staff to SCS.
2. Unaudited, preliminary actuals based on discussions with County staff (subject to change).
3. Approved budgetary figures,with Program Fee revenue applied proportional to expenses across Divisions
(see leveling factors given in Appendix E).The $2,004,719 in revenue from the General Fund was allocated
to the Sanitation Services Division based on historic precedent.
4. This table reflects the resulting restructuring of expense and revenue allocations between the Divisions which
occurred as a result of the closure of the Orange County Landfill in FY 2012-13.
5. The Solid Waste Programs Fee was reallocated for distribution from the Recycling Services Division to the
Environmental Support Division in FY 2016-17.
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2. 1 .4 Reserves
The unaudited ending balance for the Solid Waste Enterprise Fund is forecasted at$8,867,042 on
June 30, 2016. This balance includes long-term commitments and$3,492,631 of Equipment
Reserves balance. This amount represents the ending Fund balance without loan proceeds
including those from building construction,rural expansion cart procurement, a rural truck
purchase, Eubanks Road W&R Center loan, balance from closure of the Orange County Landfill,
and another prior loan. The total estimated Fund balance is $12,751,990 when these additional
loan proceeds are accounted for. Use of Fund balance has been required in order to balance the
Department budget over the past several fiscal years including the current FY 2016-17. The goal
of the Department is to enable the Fund to be structurally viable and sustainable without
contributions from the General Fund or allocations from the Fund balance.
2. 1 .5 Rate Model
At the outset of the work effort, SCS developed a Microsoft ExcelTM spreadsheet-based, pro-
forma model (Rate Model)to assist in the completion of the financial analysis. This model
includes the following facets:
• An analysis of operational expenditures (facility operation, staffing, recycling
tonnages, tipping fees, etc.); refer to Appendix E for 5-year estimated Department
expense projections.
• Analysis of capital outlays (equipment replacement and capital projects).
• Revenue analysis (annual revenue projections, net expenditures, and rate plan to
provide sufficient revenues); refer to Appendix D for 5-year estimated Department
revenue projections.
• Rate Benchmarking Analysis.
2. 1 .6 Methodology Overview
The following methods were utilized by SCS to conduct the cost of service analysis:
• Collect Historical Actual Expenses and Revenues for the County System—This task
involved gathering available historical actual revenue and expense data for the Fund,
compiling these into a financial database, and incorporating the data into the Rate
Model.
• Develop the "Test Year"—The second task was the development of an annual
revenue requirement for a"Test Year". The revenue requirement represents the total
revenue for the System needed to recover all System costs. SCS worked with County
staff to select a period that reflected a typical year for the System. Budgetary
expenses for FY 2016-17 were used as the basis of the Test Year for the Study. SCS
then worked with County staff to make these costs more representative of anticipated
conditions during the upcoming 5-year financial planning horizon. The resulting Test
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Year was used as the basis for forecasting expenses for the 5-year forecast (FY 2016-
17 to FY 2020-21).
• Develop Revenue Requirement Projection—After developing the revenue
requirement for the Test Year, SCS worked with County staff to project changes in
anticipated costs due to inflation, labor increases, facility and vehicle maintenance,
planning costs, etc. This resulted in a 5-year revenue requirement forecast for the
entire sanitation program including collection, recycling, disposal of solid waste,
public education, etc.
• Revenue Offsets— SCS worked with County staff to identify revenue sources and
develop estimates for the sale of recyclables, C&D permit revenues, C&D tipping
fees, mulch and compost sales, LFG recovery, etc.
• Determination of the Number of Customer Units—SCS worked with County staff to
develop reasonable estimates of future number of customers over the next 5-year
period.
• Calculation of the Annual County Solid Waste Programs Assessed Fee— SCS
distributed the revenue needs across the four Divisions to estimate the cost of service
and calculate the annual Program Fee needed to balance the budget.
Appendices D and E identify projected revenues and expenses, respectively, by service area used
in the Model for the Department for FY 2016-17 through FY 2020-21.
2. 1 .7 Model Scenarios
SCS developed two Rate Model scenarios to evaluate impacts to the Enterprise Fund financial
situation over the 5-year planning period. Depending on the individual scenario, the Model
assesses net revenue needs if the Program Fee, other revenues, and operating costs equal those in
the Budget for FY 2016-17 with inflation factors applied, known capital items accounted for, and
other adjustments made to specific line items as detailed in Appendix C:
• Scenario 1 — Scenario 1 assumes status quo for the Department Solid Waste Program
Fee ($107 per year). This scenario is intended to be used as a baseline or"Status
Quo" scenario to enable comparison with Scenario 2.
• Scenario 2—This scenario serves as an assessment of the required increase in the
Program Fee to balance projected operating expenses and revenues for solid waste
and recycling services. Scenario 2 assumes the Program Fee balances the Fund's
annual budget if other revenues and operating costs equal those projected in the
Budget for FY 2016-17, dependent on the sub-scenario. This iteration serves as a
"break-even" analysis.
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2. 1 .8 Model Results
Exhibit 12 shows the Modeled Budgetary Gap for Scenario 1 and the break-even Program Fees
for Scenario 2 for FY 2016-17 to FY 2020-21, all of which reflect a continuance of the General
Fund contribution. In addition to developing the Test Year revenue requirements, SCS forecasted
the annual revenue requirement for FY 2016-17 to FY 2020-21 based on the projected annual
expenses. The assumptions used to develop the forecast for Fund reserves and expenses are
presented in Appendix C. These forecasted revenues and expenses were utilized with the Rate
Model to calculate the Fund's potential annual net revenue/deficit or break-even Program Fee,
depending on the scenario. Note that the Program Fee was back-calculated using an optimization
algorithm. Complete financial model results highlighting the Fund's projected annual net
revenue/deficits are presented in Appendix F.
Exhibit 12. Scenario Modeling Results — Projected Fund
Budgetary Gap
Scenario FY 2016-17 FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21
1 — Status Quo Budgetary
Gap with $107 Program ($1,780,040) ($2,015,497) ($2,064,603) ($2,345,290) ($2,593,011)
Fee
2— Break Even Program
Fee with $0 Budgetary $137 $140 $141 $145 $148
Gap
Note: Negative values indicate a projected gap.
2. 1 .9 Division Budgetary Leveling
SCS developed a methodology to present the net revenue and expense output by the Model as if
the Program Fee contribution in the various Scenarios were disbursed across all four Department
Divisions, rather than solely through the Environmental Services Division. Allocations to the
respective Department Divisions were made proportionally based on the expenses of those
divisions and were calculated with the net output of the Model. This "Division Budgetary
Leveling" should be considered for clarity and reference purposes only and is not a financial
recommendation.
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3 .0 POTENTIAL SOLID WASTE OPERATIONAL
CHANGES
At the outset of the Study, the County expressed an interest in a brief review of the feasibility of
future solid waste operations and financing options. The following discussion is intended to
provide a description of the potential options to implement System operational changes intended
to achieve the goals of revenue increase and expense reduction, in terms of potential advantages
and disadvantages to the County. As County staff have noted, multiple small operations changes
can aggregate into large impacts on Department effectiveness and efficiencies which could
translate into reduced expenses. In this section SCS enumerates minor and miscellaneous cost
saving and revenue generating items.
3. 1 OPTIMIZE COLLECTION CENTER HOURS/DAYS OF
OPERATIONS
One of the duties of collection center attendants is to record customer attendance on an hourly
basis. The Eubanks and Walnut Grove waste and recycling centers received the most customers
in FY 2015-16, with yearly customer counts of approximately 145,000 and 136,000,
respectively. Note that these centers are open for a total of 59 hours per week, while the
remaining three centers are only open for 27 hours per week. The Bradshaw center is the least
used with approximately 38,000 customer visits in FY 2015-16.
3. 1 . 1 Collection Center Use by Month
Consider making monthly or seasonal adjustment to waste and recycling center times of
operations based on customer participation. In general,time of year does affect collection center
use, with more customer participation apparent in the summer and less in the winter.
3. 1 .2 Collection Center Use by Day of Week
Peak customer attendance occurs on Saturdays, although there is also high attendance on
Tuesdays. Peak customer"density" occurs on Sundays by far. The order of most customer visits
by day of week to least visits by day of the week is as follows: Saturday, Tuesday, Friday,
Sunday, Thursday, and Monday (there are no collection centers open on Wednesdays). The order
of busiest or most customer-dense (as determined by most customer visits on a per open hour
basis) day of week to least busy day of the week is as follows: Sunday, Saturday, Tuesday,
Friday, Thursday, and Monday. If the County were to conduct collection center operations in
order to minimize the ratio of operating cost to number of customers served, it should be done
with consideration for the busy and less busy days. Customer visits by day of week is displayed
in Exhibit 13 and peak customer density is summarized in Exhibit 14.
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Orange County, NC
Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
Exhibit 13. Recycling Center Customers by Day of Week in
FY 201 5- 1 6
700
600
▪ 500
4
400 —Bradshaw
.c81 300 KW ,/ —Eubanks
—Eubanks
—Ferguson
O 200
00 -i v , —wa nut rove"
0
a� aaJ aa� aa> 68> aa� aaa
or a`' e5 �' Fig wJc
5 �i 4`� 44° qr° ya
Source: Orange County, 2015-16
Exhibit 14. Recycling Center Customers per Hour by Day of Week
FY 201 5- 1 6
90
80
70
o.
60
2 2 —Bradshaw
50
—Eubanks
u 40
—Ferguson
z20 -`_.\--, —High Rock
o 10 � \� —Walnut Grove
0
J ai ocaai Jes- es- J`- N- 4-
ec I lea 0N-
Source: Orange County, 2015-16
3. 1 .3 Collection Center Use by Time of Day
Current waste and recycling centers are free for use by the public during various periods between
the hours of 0700 and 1800. The collection centers require an attendant to open and close the
center at the beginning and end of every day. Exhibit 15 shows that for each site, on average
customer attendance steadily increases each hour in the morning until 1100 and then jumps up
around lunch time. Counts steadily fall for the rest of the day starting around 1300 for Eubanks
and Ferguson, 1400 for Bradshaw, and 1500 for High Rock. Note that hourly customer count
data was unavailable for the Walnut Grove site. If the County were to alter the hours of
operations of the collection centers, it would be best to open later in the morning (rather than
close earlier in the afternoon) in order to maximize the number of customers served while
minimizing costs.
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Orange County, NC
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Exhibit 15. Recycling Center Customers by Hour of Day in
FY 201 5- 1 6
70
x 060
o
a
▪ 50 MillliA14111174111k at
0E 40
—Bradshaw
- 30 , —Eubanks
E 20 —Ferguson
—High Rock
oil 10
a
se 0Po d'o tioo tioo 300 c'o ° o°0 1° ePo
0 o ti ti ti ti ti ti ti ti ti
0100'0000_„tiro , 0o 0o' o yy,y�o y10o
Source: Orange County, 2015-16
3.2 CONSIDER A REDUCTION IN CURBSIDE RECYCLABLES
COLLECTION FREQUENCY
Orange County provides a high level of service in its collection of recycling. Currently it
provides weekly collection service. Many communities across the nation have piloted less
frequent collection service (e.g., every other week or monthly) as a means of reducing overall
collection costs, while at the same time continuing a form of scheduled curbside collection
service. These cost savings have to be balanced against lower recycling rates by customers. In
areas where curbside service has been reduced, many communities continue to operate recycling
collection centers. Many citizens would likely travel to the collection centers on at least a
weekly basis to dispose of their solid waste and could recycle on the same trip.
3.2. 1 Other Considerations
Orange County should consider evaluating its solid waste program on an ongoing basis internally
and/or using third party entities. Examples of considerations could include:
1. Analyze and update collection fees for institutions.
2. Continually audit department staff job responsibilities.
3. Consider additional user charges for HHW/special material management/processing.
4. Evaluate/update fees and policies at the C&D landfill.
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Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
5. Based on fleet audit, assess the need for underutilized equipment and continue to
encourage the sharing of equipment among different Divisions within the
Department.
6. Continue to consider consolidation of additional resources between two or more
Divisions within the Department.
7. Consider the additional sharing of resources of other municipalities and other public
and private entities.
For example, salaries and other personnel benefits make up one of the largest source of expense
throughout all four Divisions within the Department. Reducing the personnel force can have a
large effect on Department expenses. The below chart calculates the per person costs for the 64
employees funded by the Department. SCS calculated that an average employee's total expenses
within the Department equates to approximately $1 of the Program Fee (or approximately
$61,000), as demonstrated in Exhibit 16.
Exhibit 16. Average Personnel Direct-Cost per Person
FY 2016-17
Account Description Expense($)
Permanent Salaries 2,602,977
Overtime 42,277
Holiday Pay 37,006
Longevity 30,015
Temporary Personnel 129,694
Social Security 176,202
Medicare 41,209
Medical Insurance 571,099
Med Insurance Payment In Lieu 3,600
HSA Contribution 16,992
Dental Insurance 21,228
Life Insurance 6,571
Retirement 196,641
Non-Sworn 401(K) I 45,046
Total Personnel Direct Costs 3,920,557
Total Personnel Direct 61,259
Cost/Person
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4 . 0 POTENTIAL SOLID WASTE PROGRAM FINANCING
ALTERNATIVES
The use of the Appropriated Fund Balance as a consistent revenue component highlights the
need for financing alternatives, as the Appropriated Fund Balance consists primarily of loans and
other borrowed monies previously sequestered for other purposes. The Balance as a portion of
total revenue budgeted for FY 2016-17 is shown in red in Exhibit 17 below.
Exhibit 17. Budgeted Solid Waste Management Department Revenue
Components as Portions of Total Revenue (FY 2016-17)
•County SW Programs Fee
•Appropriated Fund
Balance
•General Fund
Contribution
•Other Funding Sources
Additional Solid Waste Program financing alternatives are outlined below.
4. 1 COLLECTIONS OF ASSESSED FEE
Currently, Orange County budgets for the successful collection of the Solid Waste Programs Fee
from 97 percent of the 61,000 assessed properties. The losses from the additional 3 percent not
collected translates to 1,830 delinquent properties, or$195,810 in lost revenue annually at a Fee
rate of$107 per property. The Solid Waste Management Department could share resources with
the Tax Administration Department to collect on the additional 3% of properties. Currently there
is an Environmental Enforcement Supervisor and Solid Waste Enforcement Officer on the Solid
Waste Staff, in addition to number administrative and managerial positions within the personnel
hierarchy. These personnel assets could be utilized to collect additional assessed fee from
delinquent property owners, potentially through an incentive system.
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4 . 2 MODIFICATION OF ORGANICS COLLECTION PROGRAM
FUNDING STRUCTURE
Commercial curbside collection and residential drop-off collection of food and other organic
wastes currently cost the Department $80 per ton per its contract with Brooks Contracting. The
Department could encourage residents to compost at home to reduce expenditure by the
Department and keep the waste closer to its point of origin for direct reuse. The Brooks
composting facility is located an hour southeast of the Town of Chapel Hill, approximately 36
miles away. Significant cost is incurred by the contractor to haul the material to the windrow
composting site from the point of collection, and then back to the Orange County Landfill so the
finished compost can be solid to residents. Efficiencies are to be gained by changing the
approach to the commercial collection efforts and bolstering the home composting program
already in place.
Additionally, the program funding structure could be changed to implement cost sharing by the
largest utilizers of the commercial organics collections program, which could bear some or all of
its costs. This would shift the burden of paying for the program from the Programs Fee or
general fund to the entities that benefit most from the program. County businesses utilizing the
program could pay a flat monthly fee or, alternatively, pay according to the quantity of organics
disposed through the program.
4.3 MAJOR WEATHER EVENT/STORM DEBRIS HANDLING
Currently the Department handles staging, clearing, and disposal operations for the cleanup of
storm debris from major weather events such as tornados, hurricanes, ice storms, and major
thunderstorms. Funding for these efforts is not provided via emergency allocations from the
General Fund, and the Department generally absorbs the costs. Financial resources should be
allocated for these non-routine events so that the cost burden is not transferred to the
Department. Additional monies may be allocated into a hypothetical renewal and extension
(R&E) fund to cover costs associated with unexpected weather or natural disaster events.
4.4 REGULATED RECYCLABLE MATERIALS ORDINANCE
The institution of the Regulated Recyclable Materials Ordinance (RRMO) in October 2002 may
have had the unintended side effect of reducing the tonnage of material disposed at the C&D
Landfill (without directing this material for recycling). It is possible that the sorting and
permitting requirements of the RRMO coupled with the timing of the global economic recession
may have caused a decrease in tonnages that has not rebounded as of FY 2015-16 as shown in
Exhibit 18. Although the RRMO does produce additional revenue from contractor licensing fees,
the tipping fee revenue and economies of scale lost from the decline in the tonnage of C&D
waste disposed(from roughly 30,000 TPY to 6,000 TPY, an 80% decline that equals
approximately$960K in lost revenue at the current tipping fee of$40/ton) outweighs the
licensing fee revenue of$120K considerably.
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Orange County, NC
Financial Plan & Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
Exhibit 18. Tons Disposed at Orange County C&D Landfill by Year
30,000
Institution of the
25,000 , RRMO Global
F r Economic
20,000 Recession Closure of
a,
$ OC MSW
0 15,000 Landfill
g 10,000
L)
v
5,000
0
01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16
Fiscal Year
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5 . 0 FINDINGS AND RECOMMENDATIONS
This findings and recommendations, including revenue increase strategies, expense reduction
strategies, and rate benchmarking from the Study are presented below. SCS offers the following
findings and recommendations for the County's consideration:
• As outlined in Scenario 1, the Fund's current financial structure is unsustainable and
maintaining the current Program Fee amount($107) along with the Status Quo
program services will yield significant annual deficits over the next 5-year period,
even with the current practice of General Fund contributions.
• The exercise of allocating monies from the Fund's balance ("Reserves")to cover the
annual budget deficit each year will deplete the entire Fund balance in approximately
5 years at the current rate of spending.
• The Pro Forma Rate Model developed as part of this cost of service study should be
updated annually and used for long-term financial forecasting of the Fund and to
evaluate the likely impact of proposed Department operational changes.
• Based on a cursory review of the program, SCS did not identify any notable
inefficiencies within the Department operations. SCS recommends the County
conduct a more in-depth review of its program on a routine basis to identify
opportunities for revenue increase and expense reduction.
5. 1 REVENUE INCREASE STRATEGIES
Because such a large component of the County's System is correlated with urban and rural
curbside recyclable material collection or drop-off, Orange County has historically relied heavily
on receiving substantial revenue from the sale of recyclable material to secondary markets. SCS
recommends the Department consider a long-term goal to set up an R&E fund to weather the
fluctuations in the recyclable commodities market and level any market pricing fluctuations over
extended timeframes. Other revenue increase strategies identified include:
• Increasing the collection of the Program Fee assessment
• Charging commercial entities for organics collection services
• Allocating funds from the General Fund to help cover the costs of storm event
cleanup
• Making efforts to increase waste disposal at the C&D Landfill to capture economies
of scale.
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5.2 EXPENSE REDUCTION STRATEGIES
SCS performed a cursory overview of Department programs to identify opportunities to reduce
expenses in order to reduce the quantity of General Fund monies to Enterprise Fund. Expense
reduction strategies identified include:
• Commercial curbside collection and residential drop-off collection of food and other
organic wastes currently cost the Department$80 per ton under its contract with
Brooks Contracting. The Department could encourage residents to compost at home
to reduce expenditure by the Department and keep the waste closer to its point of
origin for direct reuse. Alternatively, the County could shift the costs of the program
to its largest benefiters, business entities.
• Reduce debt servicing costs by continuing to contribute to an equipment reserve fund
with which replacement equipment is purchased outright. Consider implementation of
an R&E fund as a long-term objective to pay for unexpected costs outright, rather
than relying on debt financing.
• Consider altering Waste and Recycling Center hours or days of operations to
minimize down-time and reduce staff/maintenance costs per customer served.
• Establish a long-term financial plan that provides a sustainable financial structure for
the Fund. This plan should be formed as a result of a continued evaluation of
Department programs to identify issues and inefficiencies (if any exist), optimize the
structure of the Department, and find opportunities to further share resources among
the four Divisions, in addition to other tasks to increase the effectiveness of the
implementation of solid waste and recycling services.
5.3 RATE BENCHMARKING
Exhibit 19 graphically illustrates a comparison of the County's FY 2015-16 Program Fee of$107
with other North Carolina Counties' cumulative Solid Waste Fee rates. As shown, the annual
solid waste fees for various municipalities range from a low of$15 to approximately$250. It is
unclear what governmental subsidies exist for the communities with the lower fees or what
services are provided for the corresponding fees. It is also important to consider the level of
service offered by Orange County and the emphasis on environmental justice in regards to waste
reduction and recycling, including the achievement of a 64 percent recycling rate. It is not likely
to be matched by many, if any, of these jurisdictions.
Benchmarking of solid waste agencies is often difficult to accomplish since levels of service and
internal charges and subsidies are often difficult to discern from one municipal system to
another. As such, most benchmarking programs often deal with individual facilities (e.g.,
landfills, transfer stations, etc.). There is currently a lack of benchmarking data available in the
solid waste industry. SWANA has conducted the most recent benchmarking studies, but these
were focused on landfill operations.
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Orange County, NC
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Exhibit 19. Comparison of Annual Fees
Mecklenburg � 15
Caldwell 17.75
Wake 20
Surry ■ 30
Wilson ■ 35
Craven ■ 36
Wayne 45
Cumberland _ 48
Iredell _ 52
Franklin _ 55
Yadkin _ 60
Allegheny_ 60
Burke_ 60.6
Cleveland _ 62
Johnston _ 65
S�nly_ 69
Harnett_ 70
Pitt 71
Macon 72
Swain 75
Cherokee 75
Lincoln 81
Granville_ 81
Greene 82
Lenoir _ $4
Jadcson _ 84
a Caswell _ 84
e .".atauga _ $7
0
8 Robeson 9J
Lee g,3
Edgecombe_ 90
Cuplin _ 9,3
Beaufort 90
Haywood 92
Nash 96
Vance 105
Orange 107
Polk 110
Hoke 110
Warren 120
Rutherford 120
Chatham _ 125
Perquimans_ 130
Hertford _ 130
Bladen _ 130
Ash a 130
Durham -) 139
Pasquotank_ 144
Richmond _ 154
Chowan _ 16S
Martin _ 172
Madison _ 180
Gates 180
Carteret 180
Halifax� I I 1E9.75
Tyrrell 200
Northampton _ 204.5
Washington _ 215
Col umbus_ 218
Curr tuck 250
P end er 268
0 50 100 150 200 250 300
Rate($)
Source: NCDEQ Division of Environmental Assistance and Customer Service, FY 2014-15
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6 . 0 REFERENCES
1. Orange County,Approved-Adjusted Budgets, FY 2013 - 2016.
2. Orange County, Chapter 34, Solid Waste Management, Code of Ordinances, 2016.
3. Orange County,Preliminary Solid Waste Program Fee Drivers, February 2016.
4. Orange County, Solid Waste Fund Revenues/Reserves FY 2015/2016, March 15, 2016.
5. Orange County, Summary of Report on Solid Waste Fees in Select NC Counties, January
29, 2015.
6. Rogoff, Marc J., Solid Waste and Recycling: Planning of Solid Waste Recycling Facilities
and Programs, Waltham, MA, William Andrew, 2013.
7. NCDEQ Division of Environmental Assistance and Customer Service, Solid Waste Fee
Use in North Carolina(Draft Report),NC DENR Local Government Recycling Assistance
Team, FY 2014-15.
8. Additional internal Orange County data and documents not listed here.
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Appendix A
Department Organizational Chart
Solid Waste Management
Director
(1)
{855}
Environmental Support Solid Waste Operations
Administrative Officer ianagementand Progra Solid Waste Operations
Special ist Manager
(8 4) {New} {843}
I M�I r
kinistrativeAssistant II Office Assistant II Regyciing Progra
Supervisor
{0.675} {1} Disposal Operations Equipment Mai ntenance Sanitation Operations PermittinglEnfffeement (1)
{832} {853}
{847}
Solid Waste Engineer Heavy Equipment Solid Waste Collection Environmental Solid Waste
MechanicSupervism Services Manager Enforcement Supervisor
{1} 11} {1} {1}
{833} 852,$83,898
(865) {606} {848} 979,NI
vy Equipment Operat Heavy Equipment Solid Waste Field Services Sal id Waste Enforcement
Recycling
Landfill Inspector {1}
E:'r Mechanicl Supervisor Officer Han•
(2) {3} {1} {1} {.2
(841.844} {838,859,1036} {547} {887} 1895,
Co nve n i e n ce Center Operator SoIid Waste Col Iector Drlver
{14} (5)
5{599.702,703,704,705,706,707, {542,544. 46,549,550}
9728,10,10;97,1124,1123,NEW,NEW}
{703 .625 to.75 FTE}
(1123;.625ta.75 FTE)
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Orange County, NC
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Appendix B
Department Fleet Asset List
Environmental Support—Vehicle Support Vehicle 586 International 4200 Service Truck
Landfill Vehicle 687 2006 Dodge 4X4 Pickup
Landfill Vehicle 880 Ford F-250 4X4 Pickup
Landfill Vehicle 854 Ford 4X4 Pickup
Landfill Vehicle 685 2006 Dodge 4X4 Pickup
Landfill Equipment (MSW) 227 New Holland T4030 Tractor
Landfill Equipment (C&D) TBD CM! 3-75 Compactor
Landfill Equipment (C&D) TBD CAT Articulating Truck
Landfill Equipment (C&D) TBD CAT D6R Dozer
Landfill Equipment (C&D) TBD CAT 325D Hydraulic Exvac
Recycling — Ordinance Area Equipment 433 CAT 315 Excavator
Recycling Equipment 460 CAT 924GZ Wheel Loader
Recycling — Ordinance Area Equipment 435 Bobcat Skidsteer
Recycling — Ordinance Area Equipment 490 Powerscreen 4026 Conveyor
Recycling — Ordinance Area Equipment 452 CAT 963D Track Loader
Recycling — Ordinance Area Equipment 463 PP Horizontal Grinder 7400
Recycling — Ordinance Area Equipment 853 Landfill Rec-Pickup
Recycling — Ordinance Area Equipment 451 Rosco Sweeper Pro
Recycling — Universal Services Vehicle 855 Ford F-250 Pickup
Recycling — Universal Services Vehicle 1779 Freightliner FL-120 Roll-off Truck
Recycling — Universal Services Vehicle 1781 Peterbuilt/Heil Frontloader Truck
Recycling — Universal Services Vehicle 1 681 2007 Freightliner Roll-off Truck
Recycling — Universal Services Vehicle 1486 Izsuzu NPR Glass Flatbed Truck
Recycling — Universal Services Vehicle 851 Labrie Crane Carrier Recycling Truck
Recycling — Universal Services Vehicle 1 639 GWC W4500 Box Recycling Truck
Recycling — Universal Services Vehicle 872 Peterbuilt/Heil Frontloader Truck
Recycling — Universal Services Equipment 1776 Bobcat Skidsteer
Recycling — Universal Services Equipment 450 Clark CMP25 REI Plastic Compactor
Recycling — Universal Services Equipment 428 Clark CMP25 Off-road Fork Lift
Recycling — Universal Services Vehicle 432 2006 Dodge 4X3 Pickup
Recycling — Universal Services Vehicle 1 637 Freightliner Multi-family Recycling Truck
Recycling — Universal Services Equipment 897 Rudco RP-400 Stationary Compactor
Recycling — Universal Services Equipment 581 WG SWCC OCC Compactor
Recycling — Universal Services Equipment WG SWCC SS Compactor
Recycling — Universal Services Vehicle 930 Dodge 2500 Pickup Truck
Recycling — Universal Services Vehicle 1491 Manac Walking Trailer
Recycling — Universal Services Vehicle 887 Peterbuilt Road Tractor
Recycling — Universal Services Vehicle 846 Freightliner Road Tractor
Recycling —Multifamily Equipment 467 Bobcat Model 863 Skidsteer Multifamily
Recycling —Multifamily Vehicle 942 Freightliner Commercial Recycling Truck
Recycling — Urban Curbside Vehicle 1686 Dodge 1500 Pickup
Recycling — Rural Curbside Vehicle 923 Labrie/Crane Carrier Top Select 1000 Recycling Truc
Recycling — Rural Curbside Vehicle 924 La brie/Crane Carrier Top Select 1000 Recycling Truc
Recycling — Rural Curbside Vehicle Recycling Truck (TBD)
Recycling — Rural Curbside Vehicle Recycling Truck (TBD)
Recycling — Rural Curbside Vehicle 850 Transit Connect Van
Recycling — Rural Curbside Equipment 429 CAT 906H Compact Loader
Recycling — Rural Curbside Vehicle 431 2009 MAC 48' Walking Floor Trailer
Sanitation — Replacement Vehicle 232 International Dump Truck
Sanitation — Replacement Vehicle 679 Sterling Dump Truck
Sanitation — Replacement Vehicle 91 9 Chevy Equinox
Sanitation — Replacement Vehicle 852 Ford F250 Pickup
Sanitation — Replacement Vehicle TBD Peterbuilt Front Loader
Sanitation — Replacement Vehicle 881 Peterbuilt Front Loader
Sanitation — Change Vehicle 780 Peterbuilt Front Loader to Roll-off
Sanitation — Change Vehicle 844 International SwapLoader Roll-off
Sanitation — Replacement Vehicle 922 Freightliner Roll-off
Sanitation — Replacement Vehicle 927 Freightliner Roll-off
Sanitation - Replacement Equipment 7060 Bobcat Skidsteer
Sanitation - Replacement Equipment 7061 Case Skidsteer
Sanitation - Replacement Equipment 7062 Bobcat Skidsteer
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Appendix C
List of Model Assumptions
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LIST OF MODEL ASSUMPTIONS
GENERAL
• The County provided FY 2016-17 Budget values for revenues and expenses
associated with the Enterprise Fund. SCS compared these values with the previous 3
years of"Past Actual"values for FY 2012-13, 2013-14, and 2014-15, as well as the
FY 2015-16 Original Budget and Revised Budget values, to assess the reasonableness
of the Budget. Obviously, certain revenues and expenses have been dramatically
changed since the closing of the County's sanitary landfill in June 2013. Generally
speaking, SCS concluded that the FY 2016-17 Budget values for the anticipated
revenues and operating expenses that the County provided were appropriate and
reasonable based on our understanding of the County's solid waste and recycling
programs and facilities operating under each of the four divisions. Furthermore, SCS
concluded that the FY 2016-17 Budget values for approximately 33 revenue line
items and 50 operating expense line items were appropriate to serve as the baseline,
or "Test Year" for projecting the subsequent four future fiscal year revenues and
operating expenses. The exact manner in which these projections were accomplished
is described below.
• Line item accounts that had a value of zero for the FY 2016-17 Budget were
anticipated to be zero for all future years and, thus, were essentially excluded from
the analysis. Only Revenue and Expense account line items with a value greater than
zero were included in this analysis.
• Future projections for line items are escalated using the annual inflationary factor of
2.1%, which represents a calculated average of historical CPI.
• For purposes of characterizing annual deficits within the Enterprise Fund as being
funded by revenue that would originate from potential increases to the County's
property tax rate (per$100 of assessed value), SCS assumed that each $0.01
incremental increase to the tax rate yielded$1,655,660 in annual revenue.
REVENUES
• Future projections for the 33 revenue line item accounts for the four subsequent fiscal
years (FY 2017-18, FY 2018-19, FY 2019-20, and FY 2020-21) are either maintained
constant or escalated using the annual inflationary factor and the Test Year as the
baseline, unless noted in the table below as being handled differently.
• County Solid Waste Programs Fee: The current fiscal year(FY 2015-16) is the first
year in which this revenue line item account has been in effect and SCS understand it
reflects the initial Program Fee of$107 applied to 60,178 parcels. Projections for the
four future fiscal years were escalated by 1.1%,which is the projected annual
population growth, to reflect the fee being assessed for additional parcels.
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• General Fund Contribution: SCS understands that the County has established a
precedent since FY 2007-08 of utilizing contributions from the General Fund as
revenue into the Sanitation Services Division. SCS' analysis was structured to
assume that the contribution from the General Fund for the Test Year and four
subsequent fiscal years is maintained at approximately$2 million per year.
• Appropriated Balance Fund: SCS understands that the Appropriated Fund Balance
line item account is used to balance the budget. It reflects load proceeds, Program Fee
rounding, and other general fund transfers. While the County provided the value for
the FY 2015-16 Budget as approximately $1.7 million, SCS opted to only account for
known debt-financed endeavors in future fiscal years, which includes loans for
convenience center construction costs in FY 2018-19 and FY 2020-21 ($804,784 and
$904,255, respectively).No other loan proceeds or general fund transfers were
included beyond the Test Year. Also note that the $345,432 loan portion of the FY
2016-17 Appropriated Fund Balance line item was included in the Revenues for both
Scenarios for that year.
• Contributions from Equipment Reserves:Note that one of the largest revenue line
item accounts is the Contributions from Equipment Reserves, which has historically
varied significantly from year to year and will likely do so in future years. SCS
utilized values that were provided by the County as projected revenues for this line
item account for the four subsequent future fiscal years.
• Landfill Gas Recovery Revenue: SCS applied a deflationary factor of-3% to
projected landfill gas recovery revenues to account for closure of the Orange County
Landfill.
EXPENSES
• Future projections for the 50 operating expense line item accounts for the four
subsequent fiscal years (FY 2017-18, FY 2018-19, FY 2019-20, and FY 2020-21) are
escalated using the annual inflationary factor and the Test Year as the baseline, unless
noted below as being handled differently.
• Landfill Fees: The solid waste collected by the County is currently hauled and tipped
at the transfer station in Durham. SCS assumed that, in addition to escalating annual
costs by an inflationary factor, the Landfill Fees operating expense line item account
will be impacted by a$2/ton tipping fee increase (from$42.50 to $44.50) in FY
2018-19, which is a 4.7% increase.
• Debt Service Principal/Debt Service Interest: Debt servicing line items including debt
service to principal and debt service to interest were escalated but kept in the same
proportion.
• Contributions to Equipment Reserves:Note that one of the largest operating expense
line item accounts is the Contributions to Equipment Reserves, which has historically
varied significantly from year to year and will likely do so in future years. SCS
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Financial Plan and Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
utilized values that were provided by the County as projected costs for this line item
account for the four subsequent future fiscal years. SCS assumes the existing
equipment reserve fund will be incorporated into any future R&E Fund.
• Capital Expenses— IT Equipment and Furnishings: The limited expenses of IT
Equipment and Furnishings were assumed to be $5,000 and$1,000 annually in the
four years succeeding the Test Year.
• Capital Expenses— Equipment and Vehicles: The costs for replacing the County's
vehicles operated within the Solid Waste Department is expected to be financed
through various mechanisms including the Equipment Reserves Fund and debt-
servicing, thus, these line items are handled under separate line items in capital
expenses as lump sum costs provided by the County.
• Capital Expenses—Construction: The costs for upgrades to the County's solid waste
and recycling convenience centers that are anticipated to occur in FY 2017-18 and FY
2019-20 are expected to be debt-financed and, thus, are handled in capital expenses
under the Construction line item account as lump sum costs with correlating amounts
introduced into the revenues in the Appropriated Fund Balance line item account as
loan proceeds.
OTHER ASSUMPTIONS
• Program Fee kept at $107/year and appropriated fund balance used to balance budget
for status quo Scenario 1 for FY 2016-17 ONLY.
C-3
50
Orange County, NC
Financial Plan and Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
Table 1 . Budget Revenue Accounts
Budget Description Projection Assumption
Revenue
Accounts
422050 C&D License/Permit Apply Inflation Factor Only
439000 Sanitation Waste Collections Apply Inflation Factor Only
460000 Interest On Investments Apply Inflation Factor Only
470001 Sale Of Fixed Assets Hold Constant Only
479051 Clean Metal And White Goods Hold Constant Only
479052 Clean Wood Out Hold Constant Only
479053 Occ(Municipal)Collections Hold Constant Only
479058 Recycling Tip Fees Hold Constant Only
479061 Tire Tax Reimbursement Hold Constant Only
479062 White Goods Reimbursement Hold Constant Only
479063 Mattress Fee Hold Constant Only
479065 Sales Mulch Hold Constant Only
479066 Sales Compost Hold Constant Only
479068 Sales Of Recycling Material Hold Constant Only
479073 Solid Waste Disposal Fee(NC) Hold Constant Only
479074 Landfill Gas Recovery Apply 3%Decrease Only
479079 State Electronics Mgmt Funds Hold Constant Only
479080 Ncdeao Grant Funds Hold Constant Only
479085 County Sw Programs Fee Apply Population Growth Factor Only
479810 Disposal Tax Reimbursement Hold Constant Only
489996 County Gen Fund Contribution Hold Constant Only
489999 Contribution From Equip Resrvs County Provided
499900 Appropriated Fund Balance County Provided
499999 Miscellaneous Revenue Apply Inflation Factor Only
499999 Landfill Fees Hold Constant Only
682001 Landfill Fines(Penalty Surcharge) Hold Constant Only
Table 2. Budget Expense Accounts
Budget Description Projection Assumption
Expense
Accounts
Capital Expenses
510000 Permanent Salaries Apply Inflation Factor Only
510100 Overtime Apply Inflation Factor Only
510102 Holiday Pay Apply Inflation Factor Only
510200 Longevity Apply Inflation Factor Only
511000 Temporary Personnel Apply Inflation Factor Only
511003 Student Interns Apply Inflation Factor Only
520000 Social Security Apply Inflation Factor Only
520001 Medicare Apply Inflation Factor Only
520100 Medical Insurance Apply Inflation Factor Only
520101 Medical Insurance Payment In Lieu Apply Inflation Factor Only
520110 HSA Contribution Apply Inflation Factor Only
520150 Dental Insurance Apply Inflation Factor Only
520160 Life Insurance Apply Inflation Factor Only
520200 Retirement Apply Inflation Factor Only
C-4
51
Orange County, NC
Financial Plan and Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
Budget Description Projection Assumption
Expense
Accounts
Capital Expenses
520305 Non-Sworn 401(K) Apply Inflation Factor Only
530100 Training/Development Apply Inflation Factor Only
530500 Personal Mileage Apply Inflation Factor Only
540000 Telephone Apply Inflation Factor Only
550000 Postage Apply Inflation Factor Only
560000 Vehicle Maintenance Apply Inflation Factor Only
570000 Building Repairs Apply Inflation Factor Only
571000 Equipment Repairs Apply Inflation Factor Only
581000 Equipment Rent Apply Inflation Factor Only
590000 Duplicating Apply Inflation Factor Only
591000 Printing Apply Inflation Factor Only
600000 Advertising Apply Inflation Factor Only
610000 Dues Apply Inflation Factor Only
611000 Subscriptions Apply Inflation Factor Only
620000 Departmental Supplies Apply Inflation Factor Only
621000 Office Supplies Apply Inflation Factor Only
621050 Vehicle Supplies Apply Inflation Factor Only
630000 Prof.Contract Services Apply Inflation Factor Only
630003 Misc Contract Services Apply Inflation Factor Only
641000 Bonds& Insurance Apply Inflation Factor Only
641005 Workers Compensation Apply Inflation Factor Only
650000 Electricity Apply Inflation Factor Only
651000 Water and Sewer Apply Inflation Factor Only
652002 Propane Gas Apply Inflation Factor Only
670000 Uniforms Apply Inflation Factor Only
682000 Landfill Fees Apply Inflation Factor and Increase by$2 to$44.50 in FY 2018-
19
682004 NC Solid Waste Disposal Tax Apply Inflation Factor Only
682005 Processing Fee Apply Inflation Factor Only
690000 Charges By General Fund Apply Inflation Factor Only
700100 Debt Service Principal Proportion Based on County Provided (Total Debt Number*63%)
700101 Debt Service Interest Proportion Based on County Provided (Total Debt Number*37%)
720015 Retiree Health Apply Inflation Factor Only
910050 Contribution To Equip Reserves County Provided
800000 Equipment County Provided
800100 It Equipment $5K in FY 2016-17; Inflation Factor Applied Thereafter
801000 Furnishings $1 K in FY 2016-17; Inflation Factor Applied Thereafter
802000 Vehicles County Provided
880000 Construction County Provided
C-5
52
Orange County, NC
Financial Plan and Rate Study for Solid Waste Enterprise Fund SCS ENGINEERS
Table 3. General Assumptions and Quantities
Item Input Description Quantity Units/Description Comments/Source
GENERAL ASSUMPTIONS
1 Consumer Price Index 2.1%Annual CPI-12 Year Average U.S.Departimnt of Labor SCS Provided
2 Vehicles/Equipment Varies County Provided Replacement Schedules County Provided
3 Customer Growth Rate 1.10%Estimated Growth Rate " "
4 Number of Parcels 60,178 Parcels(97%oftotal assumed for budgeting proposes) "
5 Landfill Gas De-escalation Rate -3.0%Assumes decline in LFG sales revenue at closed Landfill SCS Assumptions
6 Property Tax Revenue Generation Factor $ 1,655,660.00 Property Tax revenue yearly per 1 cent rate increase County Provided
REVENUE
7 Recyclables Varies per ton(—$140,000/year) County Provided
8 Tipping Fee at Orange County LF:
8.1 ... C&D $ 40 per ton ... County Provided
8.2 Vegative Waste/Clean Wood $ 18 per ton($20 planned FY 2016-17) " "
8.3 Tires(stockpiled) $ 100 per ton " "
8.4 Pick-up Trailer $ 22 per load "
8.5 _ Car $ 10 per ton " "
8.6 Mattress/Box Springs $ 10 per piece " "
9 Yearly Fees for Scenario Modeling:
9.1 Yearly Fee-Status Quo:Scenario 1 $ 107.00 per parcel(-60,178 parcels in Test Year) County Provided
9.2 Year Fee-Scena io 2:Break Even Scenario Calculated " "
10 Transfer from General Fund $ 2,004,719.00 —$2 Mil(-35%Net Expense;65%of Sanitation Division) County Provided
11 Default Appropriated Fund Balance Transfer $ 1,680,040.00 —$1.7 Mil(loans,rounding etc.;covers budget shortffill) " "
EXPENSES
12 Tipping Fee: SCS Assumptions
12.1 MSW Current $42.50 City of Durham TS(—$565K FY 15-16,-42 TPD) County Provided
12.2 MSW Anticipated $44.50 Projected City of Durham TS Starting FY 2018-19 " "
C-6
53
Orange County, NC
Financial Plan & Rate Study for Solid Waste Enterprise Fund Scs ENGINEERS
Appendix D
Estimated Department Revenue Projections
FY2016-17 BUDGET FY2017-18 PROJECTED FY2018-19 PROJECTED
Environment Landfill Recycling Sanitation Environment Landfill Recycling Sanitation Environment Landfill Recycling Sanitation
al Support Services Services Services Total al Support Services Services Services Total al Support Services Services Services
Xion (3500) ;3510} (3520) (3530) Revenues (3500) (3510) (3520) (3530) Revenues (3500) (3510) (3520) (3530)
rit 120,000 120,000 122.530 122,53"
:ollectians 95.500 70,000 168.500 10 0.577 71,476 172,05? - 102.69' 72.983
vent 15,000 15,000 15,316 15,316 1:.539
7,000 49,000 30,000 86,000 7,0MI 49,004 30.000 86,000 7.,jC3 49,000 30.000
White Goaas 50,000 50,000 50,000 50,000 50,000
9,000 9,000 9,000 9,000 9,000
ollect ms 12,000 12,000 12,000 12.000 12,000
210,000 210,000 210,000 210,000 210,000
Ment 150,000 150n000 150.000 150n00-0 150.000
Cm emect 55,000 55,000 55,000 55,000 55,000
20,000 20,000 20,000 20,000 20,000
47,500 47,500 47,500 47,500 47,500
21,450 21,450 21,450 21450 21.450
Material 125,800 1-15,800 125,800 125,800 125,600
sal Fee(NQ 12,400 12,400 12,661 12,661 12.928
34,500 34,500 33,465 33,465 32.461
3gmt Funds 8,occl 8,000 8,000 8,000
i C: 35.000
35,000 35,000
ns Fee 6,439,046 6.439.046 6.509,876 6,509,876 6561,484
tbur-� 30,000 30,000 30,000 30,000 30.0D0
Contnbuticn '-004,719 2,004,719 2.004,719 2,004,719 2.004,719
Equip Rem, 26,117 187,190 100,993 314,300 176,501 29,566 282,211 463_7S 63,415 367,329 749,110 280,764
Balance NA NA NA NA 1,780,010 NA NA NA NA 804,784 NA NA NA NA
enue 5.500 5,500 5,616 5.616 5.734
235,600 235.600 235,600 235.600 235.600
aalty Surcharge) 600 600 600 6C 0 600
EVENTES M 660 7163 594294 99?742 ..16-. 19 11 89 55 6 1'23 341892 IMMS4 2,106,195 11,2rks,248 6"92,6i:! 679X9 2 8466
FY2019-20 PROJECTED FY2020-21 PROJECTED
Environment Landfill Recycling Sanitation Environment Landfill Recycling Sanitation
al Support Services Services Services Total al Support Services Services Services Total
Dtion (3500) (3510) (3520) (3530) Revenues 43500) (3510) (3520) (3530) Revenues
rit 127,751 127,751 130,445 130,445
:ollech= 104.562 74.522 179384 107,073 76.093 183,166
15.969 15,969 16.306 16,306
rs 7,000 49,000 3 u- "IC 84610M 1,000 49,000 30,ODO WOOD
White Goa. 50,000 50,000 50,000 50,000
9,000 9,000 9,000 9,000
'ollectior: 12,000 12,000 12,000 127000
210,000 2107000 2107000 210,000
Mont 150,000 150.000 150.000 150,000
tbmemmt 55,000 55,000 1 55,000 55,000
20,000 20,000 20,000 20,000
47,500 47,500 47,500 47,500
217450 21,450 21,450
Material 125,800 125,8D0 125,800 125,600
sal Fee(NQ 13,201 13.2101 13.479 13,479
W 31,487 31,487 30,543 30,543
4gmt Funds 8,000 8,000 8,000 8,000
is 35,000 35,000 35,000 35,004
ns Fee 6,653,880 6,653,880 6,727,073 6,727,073
.ement 30,000 30MO 301M
Cc=nbuticn 2,004,719 2,004,719 2.004,719 2,004,719
Eqmp
I Balance ':A NA -NA NA 904,255 NA NA VA NA 0
9nue 5,855 5,855 5,979 5,979
235,600 235,600 235,600 235.600
aalty Surcharge:} 600 600 600 600
R� CTz 1`1 on eni zrn U001 I oCl 14al 1 Ace ft�ll 11+rr oar cean e.x nn"I 1+rI-f I ell"c it ra�nu
55
Orange County, NC
Financial Plan & Rate Study for Solid Waste Enterprise Fund Scs ENGINEERS
Appendix E
Estimated Department Expense Projections
0160 Life Insurance 1,680 562 2,539 1,790 6,571 I 1,715 574 2,593 1,828 6,710 1,752 586 I 2,647 1,866 6,81
0200 Retirement 57,857 17,237 70542 51,005 196,641 59,077 17,600 ' 72,029 52,080 200,787 60,322 17,971 73,548 53,178 205,1
0305 NonSwom 401(K) 9,295 3,218 17,160 15,373 45,046 9,491 3,286 17,522 15,697 45,996 9,691 3,355 17,891 16,028 46,9
0100 Training/Development 21,011 6,240 6,358 4,648 38,257 _ 21,454 6,372 6,492 4,746 39,064 21,906 6,506 6,629 4,846 39,8
0500 Personal Mileage 198 198 0 0 0 202 202 0 0 0 206 20,
0000 Telephone 17,830 6,920 15,350 40,100 18,206 0 7,066 15,674 40,945 18,590 0 7,215 16,004 41,8
0000 Postage 39,210 39,210 40,037 0 0 ❑ 40,037 40,881 0 0 0 40,8
0000 Vehicle Maintenance 9,000 6,900 236,100 128,640 380,640 _ 9,190 7,045 241,078 131,352 388,665 9,384 7,194 246,160 134,122 396,1
0000 Building Repairs 18,315 2,405 13,000 35,414 69,134 _ 18,701 2,456 13,274 36,161 70,592 19,095 2,507 13,554 36,923 72,0
1000 Equipment Repairs 6,900 59,000 114,800 47,875 228,575 7,045 60,244 117,220 48,884 233,394 7,194 61,514 119,692 49,915 238,:
1000 Equipment Rent 2,910 360 2,400 3,384 9,054 2,971 368 2,451 3,455 9,245 3,034 375 2,502 3,528 9,4
0000 Duplicating 1,000 1,000 1,021 0 0 0 1,021 1,043 0 0 0 1,11
1000 Printing 14,950 0 8,000 22,950 15,265 0 0 8,169 23,434 15,587 0 0 8,341 23,9
0000 Advertising 60,300 60,300 61,571 0 0 0 61,571 62,869 0 0 0 62,8
0000 Dues 4,630 8,542 675 863 14,710 4,728 8,722 689 881 15,020 4,827 8,906 704 900 15,3
1000 Subscriptions 165 165 168 0 0 0 166 172 0 0 0 17
0000 Departmental Suppies 40,278 25,927 127,320 54,834 248,359 41,127 26,474 130,004 55,990 253,595 41,994 27,032 132,745 57,171 258,1
1000 Office Supplies 2,500 2,500 2,553 0 0 0 2,553 2,607 0 0 0 2,61
1050 Vehicle Supplies 10,950 45,686 253,180 126,544 436,360 11,181 46,649 258,518 129,212 445,560 11,417 47,633 263,968 131,936 454,1
0000 Prof.Contract Services 5,175 442,574 60,000 507,749 5,284 451,905 61,265 0 516,454 5,396 461,433 62,57 0 529,:
0003 Misc Contract Services 27,708 26,300 1,571,592 11,160 1,636,760 28,292 26,854 1,604,726 11,395 1,671,268 28,889 27,21 1,63 559 11,636 1,706
1000 Bards&Insurance 32,385 32,385 33,068 0 0 33,068 33,765 _ 0 33,7
1005 Workers Compensation 47,273 47,273 48,270 0 0 48,270 49,287 0 49,2
DODO Electricity 37,500 28,313 65,813 38,291 0 28,910 67,201 39,098 29,519 68,6
1000 Water and Sewer 6,000 6,000_ _ 0 0 6,127 6,127 0 6,256 6,21
2002 Propane Gas 5,700 3,000 8,700 5,820 _ 3,063 0 8,883 5,943 3,128 0 _ 9,0
0000 Uniforms 2,974 1,722 8,500 7,851 21,047 3,037 1,58 8,679 8,017 21,491 3,101 1,795 8,862 8,186 21,9
2000 Landfill Fees 578,747 578,747 0 0 590,949 590,949 0 0 631,804 631,1
2004 NC Solid Waste Disposal Tax 12,400 12,400 _ 0 12,661 0 0 12,661 _ 0 12,28 0 0 12,9
2005 Processing Fee 140,000 140,000 _ 0 142,952 0 _ 0 145,966 0
0000 Charges By General Fund 518,330 518,330 529,258 0 0 529,258 540,417 0 0 540,E
0100 Debt Service Principal 106,136 92,791 219,166 418,093 106,461 250,253 253,028 609,742 106,461 250,253 316,605 673,:
0101 Debt Service Interest _ 62,849 135,324 198,173 62,524 146,974 148,604 358,102 _ 62,524 146,974 185,942 395;
0015 Retiree Health 17,991 58,400 3,052 53,663 133,106 _18,370 59,631 3,116 54,794 135,912 _ 18,758 60,888 3,182 55,950 138,:
0050 Contribution To Equip Reserves 19,136 88,919 929,466 280,508 1,318,029 21,885 89,806 942,957 280,508 1,335,239 45,670 90,905 953,391 296,326 1,386
Operating Expenses Subtotal 2,211,347 1,117,414 4,987,468 2,849,445 11,165,674 2,256,752 1,140,068 5,388,995 2,943,275 11,586,139 2,324,093 1,163,225 5,484,791 3,136,076 11,96]
0000 Equipment' 17,000 17,000 0 0 0 0 0 0 318,542 0 0 318,1
0100 It Equipment' 20,000 20,000 5,000 0 0 0 0 5,105 0 0 0 5,11
1000 Furn ishings' 0 1,000 0 0 0 1,000 1,021 0 0 0 1,0:
2000 Vehicles' 26,117 446,425 314,739 787,281 176,501 29,566 282,211 252,592 740,870 63,415 48,767 749,110 280,764 1,142
0000 Construction' 0 0 0 0 804,784 604,784 0 0 0 0 0
Capital Expenses Subtotal 26,117 0 463,425 334,739 824,281 182.501 29,566 282,211 1,057,376 1,546,654 69,542 367,329 749,110 280.764 1,466
WASTE Total Expenses-$2,237,464 I $1,117,414 I 85,450,893 I $3,184,184 1 511,989,955[ I $2,439,253 I $1,169,634 I $5,671,206 I $4,001..I$13,280,744) I $2,393,635 I $1,530,554 I $6,233,901 I $3,416,040 I$13,57
ng Factor 19% 9% 45% 27':0 18% 9% 43% 30% 18% 11% 45% 25%
PROJECTED PROJECTED
FY 2019-20(5) FY 2020-21(S)
:OUNT DESCRIPTION
MBER Environment Landfill Recycling Sanitation Total Environment Landfill Recycling Sanitation Total
at Support Services Services Services Expense al Support Services Services Services Expense
(3500) (3510) (3520) (3530) (3500) (3510) (3520) (3530)
000O Permanent Salaries 825,304 247,186 988,793 709,828 2,771,111 842,705 252,397 1,009,640 724,793 2,829,535
0100 Overtime 4,629 1,876 18,164 20,339 45,008 4,726 1,915 18,547 20,768 45,957
0102 Holiday Pay 2,036 2,627 _ 19,929 14,804 39,396 2,078 2,683 20,349 15,116 40,227
0200 Longevity 17,601 1,417 6,955 3,981 31,954 17,972 1,447 9,144 4,064 32,627
1000 Temporary Personnel 9,563 2,862 48,138 77,509 138,071 9,765 2,922 49,153 79,143 140,982
1003 Student Interns 11,711 0 0 0 11,711 11,957 0 0 0 11,957
0000 Social Security 53,266 15,870 67,207 51,241 187,583 54,389 16,204 68,624 52,321 191,538
0001 Medicare 12,458 3,711 15,718 11,984 43,871 12,721 3,709 16,049 12,237 44,796
0100 Medical Insurance 127,580 51,688 228,776 199,944 607,988 130,270 52,778 233,599 204,160 620,806
0101 Med Ins Pmt In Lieu 1,278 0 1,278 1,278 3,833 1,304 _ 0 1,304 1,304 3,913
0110 Hsa Contribution 4,522 2,261 8,291 3,015 18,090 4,618 2,309 8,466 3,078 18,471
0150 Dental Insurance 4,663 1,614 8,609 7,713 22,599 4,761 1,648 8,791 7,876 23,076
0160 Life Insurance 1,789 598 2,703 1,906 _ 6,995 1,826 611 2,760 1,946 7,143
0200 Retirement 61,594 18,350 75,099 54,300 209,343 62,893 18,737 76,682 55,444 213,756
0305 'NanSnom 401(K) 9,895 3,426 18,268 16,366 47,956 10,104 3,498 18,654 16,711 48,967
0100 Training/Development 22,368 6,643 6,769 4,948 40,728 22,840 6,783 6,911 5,053 41,587
0500 Personal Mileage 0 0 0 211 211 0 0 0 215 215
0000 Telephone 18,982 0 7,367 16,342 42,690 19,382 0 7,522 16,686 43,590
0000 Postage 41,743 0 0 0 41,743 42,623 0 0 0 42,623
0000 Vehicle Maintenance 9,581 7,346 251,350 136,949 405,227 9,783 7,501 256,650 139,837 413,770
O 006 BuOding Repairs 19,498 2,560 13,640 37,701 73,600 19,909 2,614 14,131 38,496 75,151
1000 Equipment Repairs 7,346 62,811 122,215 50,967 243,339 7,501 64,135 124,792 52,042 248,470
4000 Equipment Rent 3,098 383 2,555 3,603 9,639 3,163 391 2,609 3,679 9,842
0000 Duplicating 1,065 0 0 0 1,065 1,087 0 0 0 1,087
11000 Printing 15,916 0 0 8,517 24,432 16,251 0 0 8,696 24,948
0000 Advertising 64,195 0 0 0 64,195 65,548 0 0 0 65,548
0000 Dues 4,929 9,094_ 719 919 15,660 5,033 9,285 734 938 15,990
1000 Subscriptions 176 0 0 0 176 179 0 0 0 179
0000 Departmental Supplies 42,880 27,602 135,544 58,376 264,401 43,784 28,184 138,402 59,607 269,976
1000 Office Supplies 2,661 0 0 0 2,661 2,718 0 0 0 2,718
1050 Vehicle Supplies 11,657 48,637 269,534 134,718 464,546 11,903 49,662 275,216 137,558 474,340
0000 Prof.Contract Services 5,509 471,161 63,876 0 540,546 5,625 481,095 65,222 0 551,942
0003 Misc Contract Services 29,498 27,999 1,673,106 11,881 1,742,483 30,120 28,589 1,708,380 12,131 1,779,220
1000 Bonds&Insurance 34,477 0 0 34,477 35,204 0 0 35,204
.1005 Workers Compensation 50,326 0 0 50,326 51,388 0 0 51,388
0000 Electricity 39,922 0 30,142 70,064 40,764 0 30,777 71,541
1000 Water and Sewer 0 0 6,388 6,388 0 0 6,522 6,522
2002 Propane Gas 6,068 3,194 0 9,262 6,196 3,261 0 9,457
O 000 Uniforms _3,166 1,33 9,049 8,358 22,406 3,233 1,72 9,240 8,534 22,879
2000 Landfill Fees 0 0 645,124 645,124 0 0 658,726 658,726
2004 NC Said Waste Disposal Tax 0 13,201 0 0 13,201 0 13,79 0 0 13,479
2005 Processing Fee 0 0 149,043 0 0 152,185 0
0000 Charges By General Fund 551,810 0 0 0 551,810 563,444 0 0 563,444
0100 Debt Service Principal 106,461 0 250,253 316,605 673,318 106,461 250,253 364,161 720,874
0101 Debt Service Interest 62,524 0 146,974 185,942 395,441 62,524 146,974 213,872 423,371
0015 Retiree Health 19,153 62,172 3,249 57,129 141,704 19,557 63,483 3,318 58,334 144,691
0050 Contribution To Equip Reserves 52,259 158,150 1,019,502 311,906 1,541,817 52,259 158,150 1,042,330 332,832 1,585,571
Operating Expenses Subtotal 2,375,156 1,253,076 5,638,064 3,200,932 12,318,188 2,421,568 1,27,163 5,749,892 3,347,659 12,642,097
0000 Equipment. 0 0 0 0 0 0 0 0
O 100 It Equipment' 5,213 0 0 5,213 5,323 0 0 5,323
11000 -Furnishings. 1,043 0 0 1,043 1,065 0 0 1,065
2000 Vehicles0 0 858,781 359,832 1,218,613 0 807,473 521,904 1,329,377
0000 Construction' 0 0 904,255 904,255 0 0 0 0
Capital Expenses Subtotal 6,256 858,781 1,264.087 2,129.124 6.388 807,473 i 521,904 1,335,765
WASTE(Total Expenses MI 52,381,412 I 51,253.076x,496.845 I 54,465.019 1 514,596.354[ I 52,426,955 I $1,27,163 I 56,557,365 153,
ng Factor 16% 9% 45% 31% 17% 5' 46% 27%
'Varies widely from year to year
57
Orange County, NC
Financial Plan & Rate Study for Solid Waste Enterprise Fund Scs ENGINEERS
Appendix F
Model Output
($17,032) ($1,525,820) $630,559 1 ($1,780,040) 1 ($922,248) ($254,417) ($1,710,175) $66,559 1 ($2,015,497) 1 ($1,021,970) ($109,583) (:
t Gap ($1,780,040) ($2,015,497)
PROJECTED PROJECTED
FY 2019-20 FY 2020-21
Landfill Recycling Sanitation Totalz Environmental Landfill Recycling Sanitation Total
rvices(3510) Services(3520) Services (3530) Support(3500) Services (3510) Services(3520) Services(3530)
571,227 2,961,646 2,035,419 6,653,880 1,155,432 607,559 3,121,849 1,842,233 6,727,073
310,888 1,762,249 2,469,073 5,597,184 153,750 310,222 1,713,275 2,632,716 4,809,963
882,115 4,723,895 4,504,492 12,251,065 1,309,182 917,781 4,835,124 4,474,948 11,537,036
1,253,078 6,496,845 4,465,019 14,596,354 2,426,955 1,276,163 6,557,365 3,869,563 14,130,047
($370,963) ($1,772,951) $39,473 ($2,345,290) ($1,117,773) ($358,382) ($1,722,241) $605,385 ($2,593,011)
t Gap ($2,345,290) ($2,593,011)
PROJECTED BUDGET PROJECTED PI
FY 2016-17 FY 2017-18 F
z
Landfill Recycling Sanitation Total Environmental Landfill Recycling Sanitation Total Environmental Landfill
rvices(3510) Services(3520) Services (3530) Support(3500) Services (3510) Services(3520) Services(3530) Support(3500) Services (3510) Ser
765,985 3,736,574 2,182,751 8,219,086 1,565,842 750,829 3,640,544 2,568,157 8,525,372 1,524,544 974,834
500,290 997,743 2,104,719 3,770,869 321,347 341,892 1,181,154 2,106,195 4,755,372 211,168 678,918
1,266,275 4,734,317 4,287,470 11,989,955 1,887,189 1,092,721 4,821,698 4,674,352 13,280,744 1,735,711 1,653,753
1,117,4141 5,450,8931 3,184,1841 11,989,955 2,439,2531 1,169,6341 5,671,2061 4,000,6511 13,280,744 2,393,6351 1,530,554
$148,861 ($716,576)1 $1,103,286 1 $0 1 1 ($552,064) ($76,913) ($849,508)1 $673,701 $0 1 ($657,923)1 $123,198
/Surplus w/General Fund $0 $0
Even Program Fee w/General Fund $136.58 $140.13
PROJECTED PROJECTED
FY 2019-20 FY 2020-21
Tota12 Total
Landfill Recycling Sanitation Environmental Landfill Recycling Sanitation
rvices(3510) Services(3520) Services (3530) Support(3500) Services (3510) Services(3520) Services(3530)
772,567 4,005,536 2,752,843 8,999,170 1,600,803 841,749 4,325,194 2,552,338 9,320,084
310,888 1,762,249 2,469,073 5,597,184 153,750 310,222 1,713,275 2,632,716 4,809,963
1,083,456 5,767,784 5,221,915 14,596,355 1,754,554 1,151,971 6,038,469 5,185,053 14,130,047
1,253,0781 6,496,8451 4,465,0191 14,596,354 2,426,9551 1,276,1631 6,557,3651 3,869,5631 14,130,047
($169,623) ($729,061)1 $756,896 1 $0 1 ($672,402) ($124,193) ($518,896)1 $1,315,491 $0
/Surplus w/General Fund $0 $0
Even Program Fee w/General Fund $144.71 $148.24
AttachmentB 59
Financial Plan and Rate Study for
Solid Waste Enterprise Fund
Orange County, NC
Presented by
Bob Dick, PE and Ryan Duckett
February 16, 2017
60
Summary of SCS ' Efforts
Since May SWAG Meeting
Revision of Financial Model based on actual FY
2016- 17 Budget
Budgetary Leveling throughout Financial Model
Additional Revenue/Expense Analysis
Finalize and Submit Final Report
61
Solid Waste Enterprise Fund
4 Cost Centers ( Divisions within Department)
33 Distinct Revenue Sources ( line items)
47 Distinct Expense Sources (line items)
5 Capital Sources
62
Budgeted SW Dept. Revenue
Components as Portions of Total
Revenue ( FY 2016 - 17)
15% County SW Programs Fee
Appropriated Fund Balance
17% General Fund Contribution
53%
Other Funding Sources
15%
63
Baseline ( Status Quo) Scenario
5 -Year Projections
Maintains Revenues
SW Programs Fee — $ 107/parcel
Appropriated Fund Balance — Excludes sources
other than loan proceeds in last 4 years
Estimated Fund deficit of $ 1 .8 Million addressed by
Appropriated Fund Balance in FY 2016- 17 only
64
Baseline ( Status Quo ) Scenario
FY 2016- 17
Enterprise Fund Deficit = $3.8 Million
- General Fund (GF) Contribution = $2.0 Million
Assumed Program
am
- SW Fund Balance = $ 1 .8 Million Fee
Yields Balanced SW Budget = $0 $ 107
FY 2017- 18
Enterprise Fund Deficit = $4.0 Million
Current GF Contribution = $2.0 Million
SW Fund Balance* _ $0.5 Million
Remaining SW Deficit = $ 1 .5 Million $ 107
FY 2018- 19
Enterprise Fund Deficit = $4.1 Million
Current GF Contribution = $2.0 Million
SW Fund Balance* _ $0.5 Million
Remaining SW Deficit = $ 1 .6 Million $ 107
*Residual Solid Waste Fund Balance Phase Out not included in Pro Forma model
7-�—eS ENGINEERS
65
Baseline ( Status Quo ) Scenario
FY 2019-20
Enterprise Fund Deficit = $4.4 Million
Current GF Contribution = $2.0 Million
Assumed Program
am
SW Fund Balance* _ $0.3 Million Fee
Remaining SW Deficit = $2. 1 Million $ 107
FY 2020-21
Enterprise Fund Deficit = $4.6 Million
Current GF Contribution = $2.0 Million
SW Fund Balance* _ $0.3 Million
Remaining SW Deficit = $2.3 Million $ 107
*Residual Solid Waste Fund Balance Phase Out not included in Pro Forma model
66
Financial Analysis Conclusions
Status Quo (Scenario 1 �
• Enterprise Fund current financial structure is
unsustainable.
Significant annual deficits are projected for next 5
years.
Fund subsidized by General Fund Contribution
(historical precedent) and allocation from
Appropriated Fund Balance (SW reserves).
Allocations from Appropriated Fund's Balance could
deplete entire Fund in 5 years.
Refer to Table 1 in Appendix F of Report ( Page F- 1 )
L- SCS ENGINEERS
67
Scenario 1
PROJECTED BUDGET PROJECTED PROJECTED
SCENARIO 1-Status Quo:
FY tot s-17 FY 20 t 7-18 FY 20 t 8-19
$107 Fee(Includes General
Fund Contribution-$2 Landfill Recycling Sanitation Landfill Recycling Sanitation ] Landfill Recycling Sanitation
Total Total Total
Million)' Environmental Services Services Services Environmental Services Services Services Environmental Services Services Services
Support(3500) (3510) (3520) (3530) Support(3500) (3510) (3520) (3530) Support(3500) (3510) (3520) (3530)
Program Fee Revenue 1,201,600 600,092 2,927,330 1,710,024 6,439,046 1,195,659 573,324 2,779,878 1,961,015 6,509,876 1,160,497 742,053 3,022,360 1,656,574 6,581,484
Other Revenues 168,1171 500,290 997,743 2,104,719 3,770,869 321,347 341,892 1,181,154 2,106,195 4,755,372 211,168 678,918 1,650,292 2,388,466 4,928,843
Total Revenues 1,369,717 1,100,382 3,925,073 3,814,743 10,209,915 1,517,006 915,217 3,961,031 4,067,210 11,265,248 1,371,665 1,420,972 4,672,651 4,045,040 11,510,327
Total Expenses 2,237,4641 1,117,4141 5,450,8931 3,184,1841 11,989,955 2,439,253 1,169,634 5,671,2061 4,000,6511 13,280,744 1 2,393,6351 1,530,5541 6,233,9011 3,416,840 13,574,930
Net Revenues(Deficits) ($867,747) ($17,032) ($1,525,820) $630,559 1 ($1,780,040) ($922,248) ($254,417) ($1,710,175) $66,559 1 ($2,015,497) 1 ($1,021,970) ($109,583) ($1,561,250) $628,200 ($2,064,603)
Scenario 1:Budget Gap ($1,780,040) ($2,015,497) ($2,064,603)
PROJECTED PROJECTED
SCENARIO 1-Status Quo:
FY 2019-20 FY 2020-21
$107 Fee(Includes General
Fund Contribution—$2 Landfill Recycling Sanitation ] Landfill Recycling Sanitation
Million)' Environmental Services Services Services Total Environmental Services Services Services Total
Support(3500) (3510) (3520) (3530) Support(3500) (3510) (3520) (3530)
Program Fee Revenue 1,085,588 571,227 2,961,646 2,035,419 6,653,880 1,155,432 607,559 3,121,849 1,842,233 6,727,073
Other Revenues 150,720 310,888 1,762,249 2,469,073 5,597,184 153,750 310,222 1,713,275 2,632,716 4,809,963
Total Revenues 1,236,3081 882,1151 4,723,8951 4,504,4921 12,251,065 1,309,182 917,781 4,835,1241 4,474,9481 11,537,036
Total Expenses 2,381,4121 1,253,0781 6,496,8451 4,465,0191 14,596,354 2,426,955 1,276,163 6,557,3651 3,869,5631 14,130,047
Net Revenues(Deficits) ($1,145,104) ($370,963) ($1,772,951) $39,473 1 ($2,345,290) ($1,117,773) ($358,382) ($1,722,241) $605,385 1 ($2,593,011)
Scenario 1:Budget Gap ($2,345,290) ($2,593,011)
68
Financial Analysis Conclusions
Break Even Analysis (Scenario 2 �
• If the historical General Fund Contribution is maintained,
then break-even Fee required calculated at
approximately $ 137 to $ 148 per parcel.
Refer to Table 1 in Appendix F of Report (Page F- 1 )
69
Break Even Scenario
FY 2016- 17
Enterprise Fund Deficit = $3.8 Million
- General Fund (GF) Contribution = $2.0 Million Required Program
Fee to Balance
- SW Fund Balance = $ 1 .8 Million Budget
Yields Balanced SW Budget = $0 $ 107
FY 2017- 18
Enterprise Fund Deficit = $4.0 Million
Current GF Contribution = $2.0 Million
Remaining SW Deficit = $2.0 Million $ 140
FY 2018- 19
Enterprise Fund Deficit = $4.1 Million
Current GF Contribution = $2.0 Million
Remaining SW Deficit = $2. 1 Million $ 141
SCS ENGINEERS
70
Break Even Scenario
• FY 2019-20
Enterprise Fund Deficit = $4.4 Million Required Program Fee to Balance
- Current GF Contribution = $2.0 Million Budget
Remaining SW Deficit = $2.4 Million $ 145
• FY 2020-21
Enterprise Fund Deficit = $4.6 Million
- Current GF Contribution = $2.0 Million
Remaining SW Deficit = $2.6 Million $ 148
SCS ENGINEERS
71
Scenario 2
PROJECTED BUDGET PROJECTED PROJECTED
FY 2016-17 FY 2017-18 FY 2018-19
SCENARIO 4-Break Even
Scenario Landfill Recycling Sanitation Total Landfill Recycling Sanitation Total 2 Landfill Recycling Sanitation Total
Environmental Services Services Services Environmental Services Services Services Environmental Services Services Services
Support(3500) (3510) (3520) (3530) Support(3500) (3510) (3520) (3530) Support(3500) (3510) (3520) (3530)
Program Fee Revenue 1,533,776 765,985 3,736,574 2,182,751 8,219,086 1,565,842 750,829 3,640,544 2,568,157 8,525,372 1,524,544 974,834 3,970,470 2,176,239 8,646,087
Other Revenues 168,117 500,290 997,743 2,104,719 3,770,869 321,347 341,892 1,181,1541 2,106,1951 4,755,372 1 211,1681 678,918 1,650,292 2,388,466 4,928,843
Total Revenues 1,701,893 1,266,275 4,734,317 4,287,470 11,989,955 1,887,189 1,092,721 4,821,698 4,674,3521 13,280,744 1,735,711 1,653,753 5,620,762 4,564,705 13,574,930
Total Expenses 2,237,464 1,117,414 5,450,893 3,184,184 11,989,955 2,439,253 1,169,6341 5,671,2061 4,000,6511 13,280,744 2,393,635 1,530,554 6,233,9011 3,416,840 13,574,930
Net Revenues(Deficits) ($535,571) $148,861 ($716,576) $1,103,286 $0 ($552,064) ($76,913) ($849,508)1 $673,701 $0 ($657,923) $123,198 ($613,140)1 $1,147,865 $0
Scenario 4:Deficit/Surplus w/General Fund $0 $0 $0
Scenario 4:Break-Even Program Fee w/General Fund $136.58 $140.13 $140.57
PROJECTED PROJECTED
FY 2019-20 FY 2020-21
SCENARIO 4-Break Even
Scenario Landfill Recycling Sanitation Tota 12 Landfill Recycling Sanitation Total
Environmental Services Services Services Environmental Services Services Services
Support(3500) (3510) (3520) (3530) Support(3500) (3510) (3520) (3530)
Program Fee Revenue 1,468,225 772,567 4,005,536 2,752,843 8,999,170 1,600,803 841,749 4,325,194 2,552,338 9,320,084
Other Revenues 150,720 310,888 1,762,249 2,469,073 5,597,184 153,750 310,222 1,713,275 2,632,716 4,809,963
Total Revenues 1,618,9451 1,083,4561 5,767,7841 5,221,9151 14,596,355 1,754,554 1,151,971 6,038,469 5,185,053 14,130,047
Total Expenses 2,381,4121 1,253,0781 6,496,8451 4,465,0191 14,596,354 2,426,955 1,276,163 6,557,365 3,869,563 14,130,047
Net Revenues(Deficits) ($762,467) ($169,623) ($729,061)1 $756,896 1 $0 ($672,402) ($124,193) ($518,896) $1,315,491 $0
Scenario 4:Deficit/Surplus w/General Fund $0 $0
Scenario 4:Break-Even Program Fee w/General Fund $144.71 $148.24
72
Financial Analysis Conclusions
As an alternative to solely increasing the Program
Fee, the County could take amulti-faceted approach
by increasing the General Fund Contribution, using
Solid Waste Fund Balance when available, and more
modestly increasing the Program Fee.
73
Cost- of - Services Benchmarking
3M
258
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County
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County
74
Recommended Financial Plan
Continue General Fund Contribution
Reduce reliance on Solid Waste Fund Balance in
a phased manner as necessary
Increase Program Fee in FY1 7- 18 and beyond
Evaluate Potential Revenue Generating Ideas
Evaluate Potential Expense Reductions
Evaluate Potential Cost Saving Ideas
Consider Program Financing Issues
SCS ENGINEERS
75
Thank You
Questions:
SCS ENGINEERS
Bob Dick, Vice President
bd ick(Cb-scseng ineers.com
Ryan Duckett, Staff Engineer
rcluckettC@-scsengineers.com
804-378-7440
ORANGE COUNTY
SOLID WASTE
FEE OPTIONS
lo Feb SOLID WASTE
Sol 'id a Fee
KEY ASSUMPTIONS
Parcels Average Annual Growth Rate 1.1%
Expenditure Average Annual Growth Rate 1.6%
Landfill Post-Closure Liability $6,570,862
Available Solid Waste Fund Balanacc $4,441,611
General Fund Balance Appropriations-Annual $2,000,000
Solid Waste Fund Balance Appropriation
io February 2017 SOLID WASTE 2
Sol 'id Fee
OPTION #1
Five Year Financial Forecast
FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22
Year 1 Year 2 Year 3 Year 4 Year 5
Solid Waste Fund Balance Appropriation $750,000 $500,000 $350,000 $200,000 $200,000
General Fund Appropriation $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
Program Fee $128 $132 $139 $145 $148
Estimated Available Solid Waste Fund
Balance $4,441,611 $3,691,611 $3,191,611 $2,841,611 $2,641,611 $2,441,611
fo Operating Expenses . 28 V4Yo w 9% V17°
Number of Assessed Parcels 60,178 60,840 61,509 62,186 62,870
io February 2017 SOLID WASTE 3
Sol 'id Fee
OPTION #2
Five Year Financial Forecast Summary
FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22
Year 1 Year 2 Year 3 Year 4 Year 5
Solid Waste Fund Balance Appropriation $400,000 $400,000 $400,000 $400,000 $400,000
General Fund Appropriation $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000
Program Fee $134 $134 $138 $142 $148
Estimated Ending Solid Waste Fund
Balance $4,441,611 $4,041,611 $3,641,611 $3,241,611 $2,841,611 $2,441,611
of Operating Expenses 42% 30% 27% 22% 20% 17%
Number of Assessed Parcels 60,178 60,840 61,509 62,186 62,870
io February 2017 SOLID WASTE 4
io Feb SOLID WASTE 5