Solid Waste Excise Tax MAY 11, 2015

Transcription

1 Solid Waste Excise Tax COUNCIL DISCUSSION MAY 11, 2015

2 Solid Waste Fund - History 1996 San Juan County Solid Waste District formed per Ord Purpose to fund solid waste capital closure of the Orcas Landfill and construction of county owned transfer stations 1996 Excise Tax established by District per Ord. W Rate of excise tax established at 10% - levied upon the charges paid to certified haulers for solid waste collection 2012 Council renamed the District to General District and established the Lopez Solid Waste Disposal District ( Lopez District) 2012 Council increased the excise tax to 16%; clarified that it can be used to pay for solid waste, operations, maintenance and related debt service

3 Excise Tax RCW Solid waste disposal district A solid waste disposal district may levy and collect an excise tax on the privilege of living in or operating a business in a solid waste taxing district sufficient to fund its solid waste disposal activities. The excise tax shall be billed and collected at times and in the manner fixed and determined by the solid waste disposal district. Lopez Solid Waste Disposal District a 16% excise tax is imposed within its boundaries. Practically, it is paid by the hauler who then bills the customer per the monthly bill. No change for hauler or bill payer or district. General District 16% excise tax is imposed within its boundaries (entire county minus Lopez SWDD). A change in excise tax rate would mean the hauler would have to change the rate in its monthly billing.

4 Excise Tax 2012 Lopez District imposes a 16% excise tax Not part of the discussion. LD needs to maintain excise rate per its budget. County should reduce annual lease payment to account for debt reduction ($10,000) County transitions out of Solid Waste and transfer station operation Lopez San Juan Orcas 2014 Post Closure Acct. established per DOE / Orcas Landfill 2015 General District pays off 2012 GO bond early. Reduced debt service by $66,000 per year (=3% excise tax) 2015 Excise Tax Discussion

5 Programs Programs Household Hazardous Waste Waste Collection Events Annual Waste Collection Event for each ferry served islands San Juan, Lopez, Orcas Every other year for a non-ferry served island 1 island (Waldron, Stuart, Shaw, Blakely, Decatur, etc.) Cost 75% grant / 25% excise tax Noxious Weed & Litter Control Grant Management DOE CPG grant, litter clean-up, local source control Grant writing Oversight of Transfer station contracts Town Lease agreement; ORS contract Capital project coordination Legacy Landfill Monitoring DOE compliance Solid Waste Planning SWAC

6 Program Additions Pay for increased garbage collection at County public spaces - $8,000 Orcas Eastsound (7 cans) $3,500 Village Green $2,500 Lopez Village $1,750 Total Annual Cost $7,750 Household Hazardous Waste Collection Increase outer island collection to once per year for 1 island - $15,000 25,000

7 Staffing Utility Manager -.25 FTE Solid Waste program coordinator 1.0 FTE Admin. support -.3FTE Director -.01 Finance -.05 Payroll -.1 Reception -.1 Total 1.65 FTE Contracts for services

8 Budget Overview Revenue: Excise tax: $360,000 (2015) split equally between 4011 Solid Waste Fund and 4017 SW Project Fund 1% excise tax = $22,500 Excise tax = largest source of revenue for both funds Other revenue sources: DOE grants local source control, CPG, Haz. Waste ($140,000) Operator lease agreements ($66,000) Expenses: Orcas landfill reserve acct ($221,000) established; annual monitoring ($100,000) Legacy debt retired / existing debt ($13,500) gas monitoring system Sutton Rd lease payment ($13,300) Staffing, contract services, insurance, internal service charges

9 Fund 4011 Revenue Leases 17% Excise Tax 46% DOE Grants 37% Excise Tax DOE Grants Leases

10 4017 Solid Waste Project Fund Revenue SW Excise Tax $182,000 Total $182,000 Expenditures Orcas Landfill Monitoring $100,000 Sutton Road Property $17,000 Gas System debt $12,500 Licenses permits fees $1,000 Total $130,500 Orcas Post Closure Reserve Acct. $221,000

11 4011 Solid Waste Operations Fund Revenue Service Fees and Leases $74,252 Grant Revenue $74,500 SW Excise Tax $178,000 Total $326,752 Expenditures HHW Litter and Weeds $104,200 Salaries and Benefits $163,000 Department Services (space rental, IT, Insurance.) $17,686 Lopez CPG pass through $15,800 Professional Services, supplies, travel, training, phone, etc. $22,118 Total $322,804

12 Excise Tax Adjustment Staff Recommendations: A) Maintain Current Levels of Solid Waste services and programs B) Provide garbage collection in public spaces in Eastsound and Lopez Village C) Reduce Excise tax by 3% ; amount equal to annual bond payment Reduce excise tax by 2% if annual collection event on non-ferry served island is desired D) Direct staff to create and bring forth an ordinance reducing excise tax E) Council action contingent upon full funding of CPG grant by state legislature