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087 of 2010 - Solid Waste Management Facility budget for the Calendar Year 2011 0 10-1 ' B 11-3 • SALT LAKE CITY ORDINANCE No. 87 of 2010 (Adopting the Solid Waste Management Facility budget for calendar year 2011) 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 2011. PREAMBLE On November 14, 2000, Salt Lake City(the"City") and Salt Lake County (the "County")entered into an Interlocal Cooperation Agreement(as amended on October 7, 2009, 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 2011 (the"2011 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 2011 Budget. The 2011 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 November 16,2010 to consider the adoption of the 2011 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 2011 Budget was held on November 16, 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 2011 Budget. The City Council wants to adopt the 2011 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 2011 • Budget, prepared and submitted by the Management Council. SECTION 2. ADOPTION OF BUDGET. The 2011 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 2011 Budget at any time, consistent with the Agreement. SECTION 4. PUBLIC INSPECTION. Copies of the 2011 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. Passed by the City Council of Salt Lake City,Utah, this 14 day of December 2010. RPERS ATTEST: TY RECORDER Transmitted to the Mayor on December 14, 2010 Mayor's Action: / Approved. Vetoed. Or( MAYOR jJj� RpOR F+'t APPROVED AS TO FORM Salt Lake City Attomey's Office Date i o-zr... 3 ATTEST: • Y RECO DE 4,41..Att (SEAL) Bill No. 87 o A,17 Published: December 2 • 2010 113_ATTY-#I 5 164-v 1-Ordi nance_adopting_so I id_waste_management_facili ty.DOC 4 ATTACHMENT 1 (Attach copy of 2011 Budget) 5 Initiative Name: SLVSWMF Landfill 2011 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 January and June of 2010 for calendar year 2010. SLVSWMF has submitted its 2011 budget to Salt Lake County for approval. SLVSWMF is also seeking the approval of the 2011 budget from Salt Lake City. Traditional types of midyear adjustments have been combined with the approved 2010 budget to form the 2010 amended SLVSWMF budget. The major changes to revenue and expense will now be reviewed. All comparisons are made to the amended 2010 budget. The projected December 31, 2011 cash balance for the SLVSWMF is$35,744,936.The projected cash balances by type are: Closure/Post Closure $12,870,829, Designated $22,865,855 and Undesignated $8,252. The projected cash balances include the impact of the approved $14,000,000 disbursement to the joint owners in calendar year 2010.The cash balance includes the impact of the annual landfill dividend to the joint owners.The annual dividend is projected to be$1,564,500. Revenue is projected to be $14,470,898. This is a year-to-year revenue increase of$552,398. The proposed budget for expense is$13,392,176.This is a year-to-year decrease of$306,792. Explanations for these changes follow. SLVSWMF tipping fee revenue is budgeted to decrease by $1,706,150. Ongoing tonnage is proposed to decrease by 63,559 tons or 12.3%. For reference purposes, the national average decrease in tonnage at landfills is 30%.Fees are not proposed to increase. No new fee structures have been added.There are no changes to the DEQ or the Health Department per ton assessments. Interest income revenue is projected to decrease by $45,000. PTIF interest rates Sept 09 to Sept 10 have fallen from 0.7751%to 0.6344%.This is a 18.15%decrease. Three new shredders, purchased recently,will be online and functioning beginning Feb 2011.They are projected to bring in an additional $2,329,548 in revenue. The bulk of which will be related to metal recovery. Compost sales are not projected to reach budget in 2010.Therefore decreasing compost sales budget by$25,000 for 2011. The market for soil regeneration is sluggish and will yield $30,000 less in revenue. Revenue of$30,000 from Quickcrete for the Transfer Station intersection has been included. This project was approved in 2010. However the revenue and the expense budget has been resubmitted in 2011 because the project was not started. Sale of vehicle budget revenue has been reduced by$1,000. Personal services is projected to decrease by$116,726 and 1.09 FTEs.The FTE reductions are temp employees. Fewer tons to the transfer station will require fewer temp employees who haul; a reduction of $31,572. Restrictions have been placed on overtime which will result in a decrease of$54,400.Adjustments to base are a reduction of$30,754. Initiative# Materials and supplies are projected to increase by $44,002. Purchases of posi-shells is budgeted to increase by $90,000. Use of posi-shells saves tipping face space and reduces cover-soil requirements. Small equipment and tools are budgeted to be reduced by$35,000.A change in contract will reduce janitorial supplies expense by$11,000. It is proposed that the charges and services budget decrease by$91,366. Fleet maintenance is increasing$270,990.The fleet hourly rate is increasing 6.7% and hours used are also increasing. Household hazardous waste is increasing$88,000; the rate increase of 2010 is now in effect for the entire budget year. Paving of the transfer station parking area will cost $30,000. This is not a capital expense because this land improvement costs less than $50,000. Road maintenance at the landfill has been low for the last several years. For 2011,the budget for this activity has been reduced by$150,000 to a new proposed level of$50,000. This reduction will help offset the increase in fleet maintenance. With reduced tonnage GASB18 requires less closure expense; specifically$109,600 less. With fewer tons being dropped off at the transfer station, contract hauling is budgeted to decrease by$68,256.The DEQ fee structure did not change, so$66,000 has been removed from the 2011 budget. Maintenance expense of the facilities and grounds is being delayed which will reduce the budget by$50,000. The County's Fleet Fund is directly paying $30,000 of the landfill's propane expense hence the landfill's heating expense budget is decreasing by the same amount.Other adjustments net to a$6,500 decrease. Capital expense is projected to decrease by $140,117. No items related to scheduled replacement are included. Two capital items from prior fiscal years have been included: three shredders totaling $1,973,883 and the transfer station intersection for$130,000. Ongoing capital funding of$350,000 for gas lines and $250,000 for capitalized equipment repairs have been budgeted. Planning expense for the citizen unloading area, of$100,000,which will be captialized has also been included in the budget.Adjustment to base for prior year capital is$2,944,000. Transfers from the SLVSWMF to other funds in Salt Lake County fund decreased $2,585. Vehicle replacement charges from Fleet Replacement are the driver. Based on decreased tonnage,the owners dividend is budgeted to decrease by$35,500. It is recommended that the Council approve the SLVSWMF budget. • Initiative# SLVSWMF Landfill 2011 Budget Initiative Name Blank Calendar 2011 Initiative Number L Fiscal Year Public Services Type of Initiative Department Type of Initiative Greg Davis i 801.535.6123 Prepared By Telephone Contact (Negative) Positive General Fund - Fund Balance- $ - $ - Impact Revenue Impact By Fund: Calendar Year 2011 Annual Impact Amount Impact Amount (General Fund I Total' $01 $0 Internal Service Fund Total $0' $0 Enterprise Fund SLVSWMF 14,956,676 14,956,676 Total $14,956,676, I $14,956,676 Other Fund Total $0 $0 Staffing Impact: Change in Number of FTE's: (1.09)i (1.09) Position Title: ,Seasonal Employees (1 09)! (1 09) FTEs: Full time 50.00 50.00 Seasonal 2.16, I 2.16 Total 52.16 52.16 l Initiative#-a Accounting Detail Grant#and CFDA#If Applicable: Revenue: Cost Center Number Object Code Number Amount Salt Lake Valley Sokd Waste Management Facility Interest 155,000 Landfill Fees 10,973,850 Compost Sales 425,000 Salvage Sales 2,579,548 Interfund Charges Other Sources 337,500Total Revenue 14,470,898 Calcoabon of the use of Fund Balance Amount Use and,•, Description Use of Fund Balance 485,779 1,564,500 Annual Owners Dividend One-bme Distnbubon to Owners from Landfill cash balances Total Cash Flow 14,956,676 :1 d revenue-expense 185,779 Expenditure: Cost Center Number Object Code Number Amount • Personal Services 3,433,410 • Operating and Maintenance Supplies 247,252 Charges and Services 6,438,334 Capital Outlay 2,803,883 Transfers 469,297 Total Expense 13,392,176 Annual Owners Dividend 1,564,500 One-lime Dislnbution to Owners from Landfill cash balances 0 Total Cash Flow 14,956,676 Additional Accounting Details: Revenue 14,470,898 Expense 13,392,176 Addition to Fund Balance 1,078,721 Grant Information: Grant funds employee positions? (Yes or No) • 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) • Will grant program be complete in grant funding time frame? (Yes or No) L-1 Will grant Impact the community once the grant funds are eliminated? (Yes or No) Does grant duplicate services provided by private or Non-profit sector? (Yes or NO) Initiative#-b 2011 .'SLVSWMF Budget Bridge 2011 Al SLVSWMF Budget Bridge Fees and Charges Use/(Add To) Landfill Funding Interest Fee I Compost Sale I Salese I I Charges Sources Balance Total Net FY0910 Budget-Adopted 200,000 12,360,000 450,000 250,000 338,500 14,949,122 28,547,622 Amended Amended Fund Balance FY0910 Budget-Mid year adjustments 320,000 - 1,,Fri.;54, Revenue Expense Impact' Landfill dividend impact FY0910 Budget-Amended 200,000 12,680,000 450,000 250,000 338,500 ... , , 13,698,968 ####### ####### 219,532 amended net impact ._ 54>:22'adopted net impact ISignificant Changes I :.,...4.budget to budget net rev-expense imps Interest rates dropped 0.7751%to 0.6344%,$14M w/drai _ "- Tonnage decreasing by 62,559 tons=12.3%decrease. National average is 30%decrease. -. . - < Shredders,deploying 3 as of Feb 2011 to increase metals recover-->more revenue 2,329,548 2,329,548 Soil regeneration-continues to be sluggish Quickcrete reimbursement for access road improvements 30,000 30,000 Compost sales less than projected.anticipating$223K in 2010 sales shredders aimed at metal instead of brush..metal market is$180/ton vs brush$30/ton Sale of assets 1 Fund Balance: net revenue-expense (impact other than dividends) -- - Fund Balance: Annual owners dividend impact ,-`- - - Net Total Changes v" ,. -,"."; , `"p , 2,329,548 ,1 ,,, 't;c, a, ., Proposed ProposedFund Balance FY1011 Budget 155,000 10,973,850 425,000 2,579,548 337,500 : '_4 d-: 13,356,676 Revenue Expense Impacct-- per landfill 14,470,898 13,392,176 1,078,721 :._ ::: > .,4 <,3;budget to budget net rev-expense impa 11/3/2010 11 11 AM SLVSWMF 2011 Budget Template(2).,dsx budget bodge ( Personal Budget History FTE Services I Supplies/I Services I Capital I Transfers f Dividend Total FY0910 Budget-Adopted 53.25 3,433,268 203,250 6,222,200 2,625,000 463,904 15,600,000 28,547,622 FY0910 Budget-Mid year adjustments 116,868 307,500 319,000 7,978 751,346 FY0910 Budget-As Amended 53.25 3,550,136 203,250 6,529,700 2,944,000 471,882 15,600,000 29,298,968 ISignificant Changes I Adjustment to Base - rt '"a^- . „-. -.n1 .I-::'4 Overtime - _' Temps Post-shell covering-need more.saves tipping face space 90,000 90,000 Small Equipment,value<$1,000+Small Tools ,10" v Janitorial supplies I. r:" Fleet maintenance,rates from County Fleet increased 6.7%,legacy of previous improper maintenance continues which means that hour utilization is increasing 270,990 270,990 0.0666667 Household Hazardous Waste 88,000 88,000 Fleet fuel 57,200 57,200 Xfer Station Parking area-non-capital improvements 30,000 30,000 Increase promotion of recycling 9,000 9,000 Intergovernmental Charges Misc projects ,�' '-: Misc signs 6,825 6,825 " Landfill landscape maint 8,070 8,070 Xfer Station landscaping 8,830 8,830 Surveyor charges 1,000 1,000 Maintenance of roads,premanently paving road to tipping face which will reduce temp road base mtls nee ,.':3..'23 Landfill closure expense i'-Q ,. Contract hauling-5.7%decrease in tonnage yty+any associated fuel surcharge impacts -&2'',.") DEQ fee structure did not change •:3, Maintenance of facilities'n grounds+office equip+s/w - ` Propane-Fleet will now directly pay$30K of this expense Contract labor - -- - Other Professional/Consulting environmental monitoring .;0 SLC City Engineering Support compost operation consultant I C'C Equipment rental - - - Capital Projects: Gas lines 350,000 350,000 Capitalized repairs 250,000 250,000 Transfer Station intersection.Project previously approved in 2010.Not started yet.Carryover to 2011. 130,000 130,000 Shredders,qty three.Project previously approved in 2009 and 2010.Invoice will be paid in 2011.Carryover to 2011. 1,973,883 1,973,883 Citizen Unloading Planning 100,000 100,000 Vehicle replacement charges-Non-departmental then fleet - Annual owners dividend to joint owners - , One-time distnbution to joint owners Miscellaneous 2 Total Changes 1 .-- 44,002 FY1011 Budget 52.16 3,433,410 247,252 6,438,334 2,803,883 469,297 1,564,500 14,956,676 per landfill budget 3,433,410 247,252 6,438,334 2,803,883 469,297 1,564,500 14,956,676 difference FTE 50.00 ok 20 oct 10 Temps 2.16 now 4500 hours 52.16 11/3/2010 1111 AM SLVSWMF 2011 Budget Template(2).xlsx budget bndge SOLID WASTE MANAGEMENT FACILITY Bridge from County to City numbers FY1O11 Budget Revenue+Draws on Fund Balance Per County 14,470,898 less: FY0910 adopted vs amended revenue impact less:annual owners dividend impact add: one-time distribution impact add: net revenue-expense (impact other than dividends) Per City 13,356,676 13,356,676 Expenses+Draws on Fund Balance Per County 12,589,293 less:depreciation , less:loss on sale of vehicles - - add:one-time distribution to owners add:capital 2,803,883 add:annual owners dividend 1,564,500 Per City 14,956,676 14,956,676 11/3/2010 11 11 AM SLVSWMF 2011 Budget Template(2).xlsx budget bridge SALT LAKE VALLEY SOLID WASTE MANAGEMENT FACILITY PROPOSED BUDGET Amended Proposed Dollar Percent 2010 2011 Change Change Revenue and other sources Landfill fees 12,680,000 10,973,850 (1,706,150) -13.5% Compost sales 450,000 425,000 (25,000) -5.6% Salvage sales 250,000 2,579,548 2,329,548 931.8% Interfund charges - - - - Interest income 200,000 155,000 (45,000) -22.5% Other sources 338,500 337,500 (1,000) -0.3% Total revenue&other sources 13,918,500 14,470,898 552,398 4.0% Expenditures and other uses Salaries, wages, benefits 3,550,136 3,433,410 (116,726) -3.3% Materials and supplies 203,250 247,252 44,002 21.6% Charges and services 6,529,700 6,438,334 (91,366) -1.4% Total operating expenses 10,283,086 10,118,996 (164,090) -1.6% Capital outlay 2,944,000 2,803,883 (140,117) -4.8% Transfers 471,882 469,297 (2,585) -0.5% Total expenses and other uses 13,698,968 13,392,176 (306,792) -2.2% Net before dividends&distrib. 219,532 1,078,722 859,190 391.4% Dividends&distributions Ongoing dividends 1,600,000 1,564,500 (35,500) -2.2% One-time distribution 14,000,000 - (14,000,000) -100.0% Total dividends &distributions 15,600,000 1,564,500 (14,035,500) -90.0% Net after dividends&distributions (15,380,468) (485,778) 14,894,690 -96.8% DRAFT FOR DISCUSSION PURPOSES ONLY SALT LAKE VALLEY SOLID WASTE MANAGEMENT FACILITY PROPOSED BUDGET Amended Proposed Dollar Percent 2010 2011 Change Change CONVERSION FROM COUNTY TO CITY County Revenue 13,918,500 14,470,897 552,397 4.0% Expense 12,894,968 12,589,293 (305,675) -2.4% Net 1,023,532 1,881,604 858,072 83.8% City Revenue per County 13,918,500 14,470,897 552,397 4.0% Remove gain on sale of equip - - - Add proceeds from sale of equip - - - Revenue per City 13,918,500 14,470,897 552,397 4.0% Expense per County 12,894,968 12,589,293 (305,675) -2.4% Remove depreciation (1,820,000) (2,000,000) (180,000) 9.9% Remove loss on sale of equip (1,000) (1,000) - 0.0% Add capital outlay 2,625,000 2,803,883 178,883 6.8% Expense per City 13,698,968 13,392,176 (306,792) -2.2% Dividends&distributions - Ongoing dividends 1,600,000 1,564,500 (35,500) -2.2% One-time distribution 14,000,000 - (14,000,000) -100.0% Total dividends &distributions 15,600,000 1,564,500 (14,035,500) -90.0% Net after dividends &distrib. (15,380,468) (485,779) 14,894,689 -96.8% Difference from Overview - (1) (1)