003 of 2010 - Adopting the Solid Waste Management Facility budget for calendar year 2010 0 10-3
B 10-3
SALT LAKE CITY ORDINANCE
No. 3 of 2010
(Adopting the Solid Waste Management Facility
budget for calendar year 2010)
An ordinance adopting the Solid Waste Management Facility budget, as prepared
and submitted by the Salt Lake Valley Solid Waste Management Council for the
Calendar Year 2010.
PREAMBLE
On October 7, 2009, Salt Lake City(the "City") and Salt Lake County(the
"County") entered into an Interlocal Cooperation Agreement (the"Agreement"),pursuant
to Title 11, Chapter 13 of the Utah Code Annotated, regarding the joint management and
operation of a Solid Waste Management Facility. The Agreement established the Salt
Lake Valley Solid Waste Management Council (the "Management Council") and
provided it with authority and responsibility relating to the operation and management of
the Solid Waste Management Facility.
Pursuant to the Agreement, all actions by the Management Council constitute
recommendations to the City and the County and the City and the County have the power
to review, ratify, modify, or veto any action of the Management Council.
The Management Council has prepared the attached Solid Waste Management
Facility budget for calendar year 2010 (the "2010 Budget") and has submitted it to the
City Council for its approval. The City Council has authority relating to budgets and
appropriation of funds and, therefore, must approve, on behalf of the City, the 2010
Budget. The 2010 Budget has been available for public inspection in the Office of the
City Recorder for at least 10 days.
The City Council fixed the time and place for a public hearing to be held on
January 12, 2010 to consider the adoption of the 2010 Budget and ordered notice thereof
be published at least seven days before the hearing. Notice of said public hearing was
duly published as required herein. A public hearing to consider adoption of the 2010
Budget was held on January 12, 2010, in accordance with said notice, at which hearing
all interested persons were heard for and against the estimates of revenue and
expenditures in the 2010 Budget.
The City Council wants to adopt the 2010 Budget submitted by the Management
Council.
Be it ordained by the City Council of Salt Lake City, Utah:
SECTION 1. PURPOSE. The purpose of this Ordinance is to adopt the 2010
Budget, prepared and submitted by the Management Council.
SECTION 2. ADOPTION OF BUDGET. The 2010 Budget is hereby adopted,
subject to similar approval by the County.
SECTION 3. RESERVE THE RIGHT TO AMEND. The City reserves the right
to amend the 2010 Budget at any time, consistent with the Agreement.
SECTION 4. PUBLIC INSPECTION. Copies of the 2010 Budget shall be
available for public inspection during regular business hours in the Office of the City
Recorder.
SECTION 5. EFFECTIVE DATE. This Ordinance shall take effect on its first
publication.
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Passed by the City Council of Salt Lake City, Utah, this 12 day of January,
2010.
!�1
AIRPE ON
ATTEST:
CAA-4!1[714 ,
IT R t ' DER
Transmitted to the Mayor on January 15, 2010
Mayor's Action: ) Approved. Vetoed.
,„1,0
MAYOR 1 `
lk
APPROVED AS TO FORM
Salt Lake City Attorneys Office
Date (Z-q—oa
By
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ATTEST:
RECORD R
(SEAL) 1 'r ..,;
Bill No. 3 of 2010.
Published: 2-2-10
HB A" TY-#10834-v1-Ordinance_adopting_landfill_budget_for 201 0.DOC
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ATTACHMENT 1
(Attach copy of 2010 Budget)
5
Initiative Name:
SLVSWMF Landfill 2010 Budget
Initiative Number:
Blank
Initiative Type:
Type of Initiative
Initiative Discussion:
Each year the Salt Lake Valley Solid Waste Management Facility (SLVSWMF), which is jointly owned by Salt Lake
County and Salt Lake City, submits its budget to Salt Lake City for its approval. Salt Lake City last provided its approval of
the SLVSWMF budget in December 2008 for calendar year 2009.
SLVSWMF has submitted its 2010 budget to Salt Lake County for approval. SLVSWMF is also seeking the approval of
the 2010 budget from Salt Lake City.
Traditional types of midyear adjustments and two prior period adjustments have been combined with the approved 2009
budget to form the 2009 amended SLVSWMF budget.The major changes to revenue and expense will now be reviewed.All
comparisons are made to the amended 2009 budget.
The projected December 31,2010 cash balance for the SLVSWMF is$35,588,579.The projected cash balances by type
are: Closure/Post Closure $13,161,133, Designated $20,063,165 and Undesignated $2,364,281. The projected cash
balances in the proposed 2010 budget includes the impact of a $14,000,000 disbursement to the joint owners. The cash
balance includes the impact of the annual landfill dividend to the joint owners. The annual dividend is projected to be
$1,600,000.
Revenue is projected to be$13,958,500.This is a year-to-year revenue increase of$489,500. The proposed budget for
expense is$12,947,622.This is a year-to-year increase of$2,467,740. Explanations for these changes follow.
SLVSWMF tipping fee revenue is budgeted to increase by$830,000.This is driven by three factors. Ongoing tonnage is
proposed to increase by 21,259 tons. It is anticipated that the convenience of the transfer station,the speed of access to the
landfill tipping face and the even handed way in which fees are applied to all customers at both the transfer station and the
landfill will generate increased tonnage. Fees are also proposed to increase. Two new axle-rate fee structures have been
added which will further distinguish between loads brought in by pick-up trucks and those loads are brought in by commercial
haulers. It is also proposed that the landfill pass-through the doubling in the Health Department per ton assessment.
Interest income revenue is projected to decrease by $200,000. PTIF interest rates Sept 08 to Sept 09 have fallen from
2.9599%to 0.7751%.This is a 73.81%decrease.
The market for salvage materials has eroded significantly. This is projected to result in a decrease of $210,000 in
revenue.
Based on a new contract accompanied by an increase in volumes, it is estimated that soil regeneration will yield$65,000
in additional revenue.
Personal services is projected to decrease by $270,047 and by four FTEs. The FTE reductions, totaling $245,765,
include two FTEs being transfered to the Health Department and two FTEs being transfered to Fleet.The vacancy challenge
of $74,151 has been added back into the budget and 401K contributions and employee rewards have been reduced by
$29,445. Pay for employees is budgeted to be cut by 2.75%or$68,988.The number of FTEs at the SLVSWMF is proposed
to now be 53.25.
Materials and supplies are projected to decrease by $22,350. The largest component of this change is a $15,000
decrease in computer related expense. Replacement cycles have been extended. The other major component is a $8,300
reduction in posi-shell expense.
Initiative#
It is proposed that the charges and services budget increase by $688,130. The Health Department assessment will
increase by$360,000.This will cover the collection costs associated with increasing e-waste tonnage. Contract hauling costs
are projected to increase by $193,000 due to a 6% increase in tonnage and fuel surcharges. The changes in this category
include an increase of$122,776 for fleet fuel,an increase of$115,655 in fleet maintenance, a$26,000 decrease in utilities,a
decrease of $35,269 in other professional services and a $20,000 decrease in advertising expense and a decrease of
$9,300 in transportation and mileage. Other adjustments total$12,732 in decreases.
Capital expense is projected to increase by$2,045,300 and includes items which are part of scheduled replacement.
Transfers from the SLVSWMF to other funds in Salt Lake County are now reflected in Salt Lake City's submission of the
SLVSWMF budget. Previously transfers were shown as a reconciling item. In total transfers are $463,904. Transfers are
proposed to increase by$26,707.This is expense associated with vehicles replacement which is handled by a separate fund
within Salt Lake County.
It is recommended that the Council approve the SLVSWMF budget.
Initiative#
SLVSWMF Landfill 2010 Budget
Initiative Name
Blank Calendar 2010
Initiative Number Fiscal Year
Public Services Type of Initiative
Department Type of Initiative
Greg Davis 801.535.6123
Prepared By Telephone Contact
- - - - -- - - (Negative) Positive - - -'
General Fund - Fund Balance- $ - $ -I - - Impact --- - - -- - --- -- - - --Revenue Impact By Fund: Calendar Year 2010 Annual
Impact Amount Impact Amount
General Fund
Total' $0 $0i
Internal Service Fund
Total l $01 $0
Enterprise Fund
SLVSWMF _ 28,547,622 28,547,622 --
Total $28,547,622 $28,547,622
.Other Fund
Total $0 $0
Staffing Impact:
Change in Number of FTE's: (4.00) (4.00)
Position Title: _
Transferred to Health Dept (2.00) _ (2.00)
Transferred to Fleet Fund (2 00) (2 00)
FTEs:
Full time 50.00 50.00
Seasonal 3.25 3.25
Total 53.25 53.25
Initiative#-a
Accounting Detail Grant#and CFDA#If Applicable:
Revenue:
Cost Center Number Object Code Number Amount
Salt Lake Valley Solid Waste Management Facility
Interest 200,000
Landfill Fees 12,360,000
1Compost Sales 450,000
ISalvage Sales l 250,000
'Interfund Charges 0
Other Sources 338,500
Total Revenue + 13,598,500
Use of Fund Balance 14,949,122
Total Cash Flow 28,547,622 i
Expenditure:
Cost Center Number Object Code Number Amount 1
Personal Services 3,433,268 t
Operating and Maintenance Supplies 203,250 ;
Charges and Services 6,222,200
Capital Outlay 2,625,000
1-Transfers 1 463,904
Total Expense 12,947,622
Annual Owners Dividend i 1,600,000+
One-time Distribution to Owners from Landfill cash balances 14,000,000
Total Cash Flow 28,547,622
r
i
Additional Accounting Details:
Revenue
_ 13,598,500
Expense 12,947,622
Addition to Fund Balance 650,878
- - -1 1_ T
Grant Information: -
Grant funds employee positions? (Yes or No)
1 1 T
Is there a potential for grant to continue? (Yes or No)
If grant is funding a position is it expected the position will
be eliminated at the end of the grant? (Yes or No)
Willgrant program be complete in grant fundingtime frame? (Yes or No) 7
1 - p- g p i - -
i Will grant impact the community once the grant funds are
eliminated? 1 (Yes or No)
1 Does grant duplicate services provided by private or
'Non-profit sector? (Yes or NO)
}
i
Initiative#-b
SLY SOLID WASTE MANAGEMENT FACILITY
Fees and Charges Use •• o
Landfill Compost Salvage Interfund Other Fund
Funding Interest Fee I Sales I Sales I Charrppaee� Sources Balance Total Net
FY0809 Budget-Adopted 11,530,000 395,000 460,000 95,000 t r Amended Amended Fund Balance
FY0809 Budget-Mid year adjustments+Prior period adjustmi (1,000,000) (36,500) 1,270,749 r 234,249 Revenue Expense Impact
Landfill dividend Impact 1,S640 000 1,640,000
FY0809 Budget-Amended 400,000 11,530,000 395,000 460,000 58,500 265,500 (980,118) 12,119,882 13,109,000 10,479,882 2,629,118 amended net impact
3,899,867 adopted net impact
I Significant Changes I 1,270,749 budget to budget net rev-expense imps
Interest...rates dropping significantly...2.9599%vs 0.7751% (200,000) (200,000)
I orinage increase=11,e>Y tons=4.40-no increase.Largest
increase 2008 to 2009 seen In hauler category and
altemative daily cover.expect continued strong demand In
all categories.Convenience and shorter wait time to tip load
are driving increased tonnage.Two new axle-rate structures
will also generate additional revenue. 470,000 470,000
Fee mcrease,pass-tnru or Health Dept doubling Incur
assessment 360,000 360,000
Shredders,deploying more to increase metals recover-->more revenue 55,000 55,000
Outside market price for salvaged mtls has dropped significantly (210,000) (210,000)
Reimbursement for healtn dept employees who are no longer
on SLVSWMF payroll i.e.the 2 FTE drop (58,500) (58,500)
Soil regeneration-increased volume+increase royalty%in new contract 65,000 65,000
re0eral tax credit ror methane gas sales has peen over
budget.This incorporate this trend into budget.Contractor
(Landfill Energy)handles this. 10,000 10,000
Refunds and sale or mtls+supplies no longer occurring.
Therefore taken out of budget. (2,000) (2,000)
Fund Balance: net revenue-expense (impact other than dividends) 1,978,240 1,978,240
Fund Balance: Annual owners dividend impact (40,000) (40,000)
Fund Balance:Distribution impact 14,000,000 14 000,000 Net
Total Changes (200,000) 830,000 55,000 (210,000) (58,500) 73 000 15 9382240 16,427,740 Proposed Proposed Fund Balance
FY0910Budget 300,006 12,360,000 450,000 250,006 330 500 14,949 122 28,547,622 Revenue Expense lmpacct
per landfill 13,598,500 12,947,622 650,878
(48,,S00) 2,467,740 1,978,240 budget to budget net rev-expense imps
12/08/2009 12.35 PM
SLVSWMF 2010 Budget Template_sub to RG and GC(2)xlsx budget sch
Personal Materials/ Charges/
Budget History FTC Services I Supplies I Services Capital Transfers Dividend Total
0809 Budget-Adopted 3,560,256 2/6,300 5,8/9,37 579,700
FY0809 Budget-Mid year adjustments 143,059 (700) (345,301) 3,530 (199,418)
Transfers to other County Funds-prior period adjustment 433,667 433,667
Landfill dividend-prior period adjustment 1,640 000 1 640 000
F50809 Budget-As Amended 57.25 3,703,315 225,600 5,534,070 579,700 437,197 1,640,000 Iu9�82
_ Significant lhanges _ '
Adjustment to Aase (5/,nr,,l (579,700)
Vacancy Impact removed 74,151 74,151
401K Contribution+Employee Rewards (29,445) (29,445)
FTEs to Health Dept (2.00) (95,765) (95,765)
FTEs to Fleet (2.00) (150,000) (150,000)
Salary cut of 2.75% (68,988) (68,988)
Computer Components,extended replacement cycle (15,000) (15,000)
Posi-shell (8,300) (8,300)
Small Equipment,value<$1,000+Small Tools 950 950
Health Department/Maz Waste-assessment doubled from$.75/ton to$1.50/ton...e-Waste collection impac 360,000 360,000
Contract hauling-6%increase in tonnage yty+fuel surchage impact as prices Increase 193,000 193,000
Fleet fuel 122,776 122,776
Fleet maintenance,rates from County Fleet increased 11% 115,655 115,655
Transportation+mileage (9,300) (9,300)
Intergovernmental Charges
Accounting Support,no longer shared (65,000) (65,000) (6,600)intergov w/o road
Project support(spnnkers,curbs,paving)increase from
SLCounty Public Works 57,500 57,500
Legal and auditing 1,400 1,400
Permit tee to at state wept or tnvnonmental Quality,
increase tons->increased fee and fees in general going 57,000 57,000
Maintenance of facilities'n grounds+office equip+s/w,now being handled by project support.See 957K ii (21,000) (21,000)
Maintenance of roads,premanently paving road to tipping face which will reduce temp road base mtls need (39,000) (39,000) (2,500)maint of
Utilities-water,sewer,natural gas,electricity,cellphones (26,000) (26,000)
Other Professional/Consulting
e-waste for Salt Lake County...total budget=$27,800...SLCity Refuse Fund Budget=$30K 5,031 5,031
SLC City Engineering Support (35,900) (35,900)
Lab fees (3,000) (3,000)
Miscellaneous (1,400) (1,400)
Advertising,decreasing promotional materials related to recycling,consolidated yellow-page advertisement (20,000) (20,000)
Capital Projects:
Shredder+Conveyor system,qty 3...1/3 green waste and 2/3 traditional waste 1,600,000 1,600,000
Methane gas lines 350,000 350,000
Asphalt road to tipping face 350,000 350,000
Trommel screen,green waste screening 200,000 200,000
Replace walking floor trailer 100,000 100,000
Scale repairs 15,000 15,000
Conveyor system,self loading 10,000 10,000
Vehicle replacement charges-Non-departmental then fleet 26,707 26,707
Annual owners dividend to joint owners (40,000) (40,000)
One-time distribution to joint owners 14,000,000 14,000,000
Miscellaneous (3,632, 3,632) (3.6321
Total Changes (4.00) (270 (22 3507 608,130 2,045,300 26,707 13,960 000 16,4 7 740 (12,732)
FY0910Budget 53.2$' 3,433,268 203,250 6,222,200 2,625,000 463,904 15,606,000 28,54/,622
per landfill budget 3,433,268 203,250 6,222,200 2,625,000 463,904 15,600,000 28,547,622
difference
FTE 50.00
Temps 3.25
• 53.25
12/08/2009 12.35 PM
SLVSWMF 2010 Budget Template_sub to RG and GC(2)also budget sch
SOLID WASTE MANAGEMENT FACILITY
Bridge from County to City numbers
FY0910Budget
Revenue+Draws on Fund Balance
Per County 13,598,500
less: FY0809 adopted vs amended revenue impact (989,118)
less:annual owners dividend Impact (40,000)
add: one-bme distribution Impact 14,000,000
add: net revenue-expense (impact other than dividends) 1 978 240
Per City 28 b48622 28,547,622
Expenses+Draws on Fund Balance
Per County 12,143,622
less:depreciation (1,820,000)
less:loss on sale of vehicles (1,000)
add:one-time distribution to owners 14,000,000
add:capital 2,625,000
add:annual owners dividend 1,600,000
Per City 054622 28,547,622
12/08/2009 12.35 PM
SLVSWMv 2010 Budget Template_sub to RG and GC(2)olsa budget sch