Agenda Item Name:
Title
Unanticipated revenues and use of reserves for Solid Waste funds
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Presenter:
Patrick Irby
Description:
Recognize unanticipated revenues and use of reserves in Solid Waste Funds to cover expenditures through end of fiscal year 2019.
Recommended Action:
Recommended Action
Approve unanticipated revenues and budget amendment to adjust budget to cover expenditures through end of fiscal year 2019.
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Prior Board Motions:
None
Fiscal Consideration:
Fiscal Consideration
Approve unanticipated revenues and budget amendment to adjust the following funds and accounts to have sufficient funds to finish fiscal year 2019.
Fund 148: MSBU Fund-unanticipated revenues for recover of some of debris reimbursement from Hurricane Irma of $400,000. Accounts: 148.00.0050.331.5100 and 148.76.7600.534.43.00.
Fund 400: Solid Waste Fund-unanticipated revenues from tipping fees due to increased tonnage coming into the transfer station of $772,377. Accounts: 400.76.7640.343.4000, 400.04.0440.590.99.20, and 400.76.7630.534.43.00.
Fund 403: Rural Collection Centers-use of reserves for increased costs due to tonnage, increased processing costs at the Material Recovery Facility (MRF), and
Engineering costs for improvements at the Rural Collection Centers for $150,000. Accounts: 403.04.0440.590.99.20 and 403.76.7610.534.43.00
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Background:
As the economy has improved, so has the tonnage of Solid Waste being brought to the Leveda Brown Transfer Station. This additional tonnage comes from both residential sources and commercial sources. The solid waste is processed, removing any recyclables that are easily separated, then shipped to the New River Solid Waste Facility. Solid Waste and Resource Recovery Department has estimated the tonnage to finish the fiscal year and the budget needs to be adjusted to recognize the additional unanticipated revenues ($772,377) and cover expected expenditures ($500,000) from this increase in the tonnage in the Solid Waste Fund with the remaining amount going to increase reserves ($272,377). Other Solid Waste Funds need adjustments in their budgets to finish the fiscal year as detailed below.
The MSBU Fund which administers the curbside contract in the unincorporated mandatory collection area of the county has seen an increase in tonnage, increase in processing fees at the MRF, increase in households, and increase in costs for Alachua County Minimum Wage. This fund had transfers out of $2.350 million to help cover the cost of debris from Hurricane Irma. The reimbursement from FEMA has taken longer than expected. The reimbursement requests have now been obligated by FEMA and the State of Florida and a sub grantee agreement is being input on the Board’s agenda for 8/27/19 as the last step before receiving reimbursement for a percentage of the debris disposal costs. With the expectation of receiving these funds before the end of the fiscal year, a resolution for unanticipated revenues is attached to the agenda for approval of $400,000 of the $4.293 million expected to be reimbursed by FEMA and the State of Florida.
The Rural Collection Centers (RCC) Fund which funds the operations of the RCC’s has seen an increase in tonnage, increase in processing fees at the MRF, and engineering costs for improvements to the Fairbanks and North Central RCC. A budget amendment needs to be approved to move budget from reserves to cover these cost through fiscal year end. Currently reserves are $2.07 million for RCC Fund.
The increase in the processing fees for the MRF is due to decreases in the market value of commodities recycled and increased costs for Alachua County Minimum Wage. The fee schedule for the MRF is on a sliding scale, based on the market value of the commodities which causes an inverse relationship to processing costs. Processing cost are stable so when the market his high, there is an offset of the processing fee and when the market is low, there are no revenues to offset processing costs.