SUMMIT COUNTY COUNCIL WORK SESSION -Solid Waste Financials- Jaren Scott Solid Waste Department

THE PROBLEM: FINDING SOLUTIONS FOR THE FUNDING OF THE SOLID WASTE DIVISION LONG- TERM

RECENT CHANGES:  Increased tipping fees from $25 to $30/ton ($275,000 in increased revenue for 2015)  Economy has picked back up. Total tons in 2014 were 52,865. YTD=51,615 tons.  Loss in commodity values (white goods from $220/ton to $55/ton) = less recycling.  Started new cell development

Landfill Enterprise Only *Projected/Requested (using average of 55,000 tons/yr)

Waste Collection Only *Requested/Projected

ALL Solid Waste (Landfill + Collections) *Projected/Requested (using average of 55,000 tons/yr)

Capital and Closure Needs  2015: $854,293  ($560,000 for Henefer Land Acquisition, $150,000 for New Cell Construction, $144,293 Closure)  2016: $1,546,293  ($200,000 cell development, $1,020,000 green waste, $182,000-Collections Weber Transfer Remodel, $144,293 Closure)  2017: $924,293  ($765,000 New Cell Construction, $15,000 Transfer Station Design, $144,293 Closure)  2018: $1,019,293  ($875,000 Transfer Station Construction, $144,293 Closure)

Additional Revenue Possibility  Snyderville Basin Water Reclamation District (SBWRD). 8,000 tons of biosolids  Approx. $240,000 in revenue, depending on terms  Looking for a long-term contract (~20 years)  Key Component of a Green Waste/Composting Program  Ability to compost/mono-fill/landfill the material.  Reliable income that could be bonded against  $2-$4million depending on the years bonded for

Options  Do Nothing (Continue to run deficit and balance using the general fund)  Change Tipping Fees (Only has impact on landfill enterprise fund)  Implement Waste Management Fee (as discussed in 2014, to impact the enterprise, the Collections, or both)  Make Solid Waste (Landfill & Collections) Self-Sustaining through a combination of both tipping fees and a waste management fee.

Adjusting Tipping Fees  The average annual deficit for the enterprise fund is $615,000  It would take an increase of $11.20/ton ($11.20x55,000=$616,000)  Bringing our tipping fees to $41.20  Northern Utah average=$31.20 (see next slide)  Would that high of a rate push our waste to neighboring counties?  I recommend a hybrid approach  A tipping fee increase of $3/ton ($3x55,000= $165,000)  Institute a waste management fee of $24/household/year (20,000x$24=$480,000)

Rate Comparison SUMMIT COUNTY= $30  Salt Lake County: $31.35/ton  Transjordan: $29/ton  Wasatch Integrated: $30/ton  South Utah County: $35/ton  North Pointe (Northern Utah County) $33.50/ton  Logan landfill $29/ton.  Weber County $32/ton  Average: $31.40

Making the Solid Waste Division (Landfill & Collections) Self-Sustaining  The average annual deficit for the entire division is: $3,200,000  A tipping fee increase of $3/ton ($3x55,000= $165,000)  20,000 households x$13 x 12 months totals $3,120,000  Fee Billing allows future opportunities for opt-out/opt-in (green- waste/more recycling).  Allows Solid Waste to be billed as a utility and not funded from the general fund.  Could be any combination and implemented over time.

 If the Solid Waste Division becomes self- sustaining, general fund dollars would be available for transportation and other capital needs.