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091 of 2004 - adopting the Solid Waste Management Facility budget for calendar year 2005 0 04-1 B 04-4 SALT LAKE CITY ORDINANCE No. 91 of 2004 (Adopting the Solid Waste Management Facility budget, which has been prepared and submitted by the Salt Lake Valley Solid Waste Management Council for calendar year 2005, subject to specific policy directives) AN ORDINANCE ADOPTING THE SOLID WASTE MANAGEMENT FACILITY BUDGET, AS PREPARED AND SUBMITTED BY THE SALT LAKE VALLEY SOLID WASTE MANAGEMENT COUNCIL, FOR CALENDAR YEAR 2005, SUBJECT TO SPECIFIC POLICY DIRECTIVES. PREAMBLE On November 14, 2000, 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 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 Salt Lake Valley Solid Waste 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 Salt Lake Valley Solid Waste Management Council. The Salt Lake Valley Solid Waste Management Council has prepared the attached Solid Waste Management Facility budget for calendar year 2005 and has submitted said attached budget to the City Council for their approval. The City Council has authority relating to budgets and appropriation of funds and, therefore,must approve, on behalf of the City,the Solid Waste Management Facility budget. The attached Solid Waste Management Facility budget has been available for public inspection in the Office of the City Recorder for at least ten days. The City Council fixed the time and place for a public hearing to be held on December 14, 2004 to consider the adoption of the attached Solid Waste Management Facility budget and ordered notice thereof be published at least seven days prior to the hearing. Notice of said public hearing, to consider the adoption of said Solid Waste Management Facility budget,was duly published as required herein. A public hearing to consider adoption of said Solid Waste Management Facility budget was held on December 14, 2004, in accordance with said notice, at which hearing all interested persons were heard for and against the estimates of revenue and expenditures in the Solid Waste Management Facility budget. The City Council wants to adopt the attached Solid Waste Management Facility budget for calendar year 2005, submitted by the Salt Lake Valley Solid Waste Management Council, subject to specific policy directives. Be it ordained by the City Council of Salt Lake City, Utah: SECTION 1. PURPOSE. The purpose of this Ordinance is to adopt the attached Solid Waste Management Facility budget,prepared and submitted by the Salt Lake Valley Solid Waste Management Council, for calendar year 2005, subject to the attached policy directives. SECTION 2. ADOPTION OF BUDGET. The attached Solid Waste Management Facility budget,prepared and submitted by the Salt Lake Valley Solid 2 Waste Management Council, for calendar year 2005, is hereby adopted subject to the attached policy directives, and subject to similar approval by the County. SECTION 3. RESERVE THE RIGHT TO AMEND. The City reserves the right to amend the attached Solid Waste Management Facility budget, at any time, consistent with the Agreement. SECTION 4. PUBLIC INSPECTION. Copies of the attached Solid Waste Management Facility 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 14th day of December, 2004. . Li -0-e CHAIRPERSON ATTEST: APPROVED AS TO FORM f Salt Lake City Attorneys Q#fge Date HIEF DEPUTY ITY CORDER---- By 4 Transmitted to the Mayor on 12-15-04 Mayor's Action: /( Approved. Vetoed. OR 3 ATTEST: CC#V;If.F DEPUT C RDER (SEAL) Bill No. 91 of 2004. i'r fl,C �r Published: 1-11-05 � ! y*. • G:\Ordinance 04\Adopting the Solid Waste Mgmt Facility Budget-Dec 14,2004.doc 4 Salt Lake City Corporation Management and Fiscal Note Worksheet for Budget Development and Budget Amendment Public Services FY0405 Department For Fiscal Year SLVSWMF 2005 Budget FY2005 Landfill Budget Initiative Name Initiative Number Greg Davis 535-6397 Prepared By Phone Number Co-Approve SLVSWMF Annual Budget N/A Type of Initiative CFDA Number Fiscal Impact of Proposed Change A. Revenue Impacted by Fund and Source: 1st Year 2nd Year 3rd Year FY 2004-05 FY 2005-06 FY 2006-07 1. General Fund Total $0 $0 $0 2. Internal Service Fund Total $0 $0 $0 3. Enterprise Fund I Salt Lake Valley Solid Waste Management Facility Interest 675,000 688,500 702,270 Landfill Fees 14,280,000 14,280,000 15,253,636 Compost Sales 400,000 400,000 400,000 Salvage Sales 220,000 230,000 240,000 Interfund Charges 105,000 105,000 105,000 Other Sources 257,000 260,000 275,000 Fund Balance ... (Favorable)/Unfavorable (1,379,437) (6,560) (673,273) Total $14,557,563 $15,956,940 $16,302,633 4. Other Fund Total $0 $0 $0 B. Expenditures Impacted by Fund and Source: 1. General Fund Total $0 $0 $0 2. Internal Service Fund Total $0 $0 $0 3. Enterprise Fund - Salt Lake Valley Solid Waste Management Facility 14,557,563 15,956,940 16,302,633 Total $14,557,563 $15,956,940 $16,302,633 4. Other Fund Total $0 $0 $0 C. Expenditure Impact Detail 1.Salaries and Wages 2,640,081 2,706,083 2,773,736 2. Employee Benefits 1,300,339 1,332,847 1,366,168 3. Operating and Maintenance Supply 261,200 261,200 270,000 4. Charges and Services 9,206,643 9,436,809 9,672,730 5. Capital Outlay 1,149,300 2,220,000 2,220,000 6. Other(Specify) Total $14,557,563 $15,956,940 $16,302,633 FY2005 Fiscal Note Template_Landfill Budgetl0/28/200411:12 AM Salt Lake City Corporation Management and Fiscal Note Worksheet for Budget Development and Budget Amendment E. Measured or measurable Impact on functions, structure and organization This action has no impact on the FY2005 balanced scorecard business plan goals and targets. F. Issue Discussion: A complete justification will contain a discussion of each of the elements mentioned below; criteria, condition, effect, cause and recommendation. Criteria is a definition of what is expected or what can be expected. It provides a basis for comparison without which analysis cannot be effective. The criteria varies from issue to issue. In straightforward cases,it can be an ordinance or policy. In other cases,it may be an industry standard or comparable data from another city. Condition is a description of current practices. It is the information to which the criteria is compared. Effect is the difference,if any,between the condition and criteria. It is best described in terms of a dollar impact or a service level impact. If an effect cannot be identified, there is no finding. Cause is sometimes a difficult element to identify but is essential to a finding. It is simply identifying why the condition varies from the criteria. Sometimes the answer is as simple as a change in policy or budget but often goes deeper into management Recommendation is made in a way that addresses the cause. By doing so,it is most likely to result in improving the condition to be in line with the criteria. 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 approval. Salt Lake City last provided its approval of the SLVSWMF budget in December of 2003 for calendar year 2004. SLVSWMF has submitted to Salt Lake County its proposed budget for calendar year 2005 and is seeking approval from Salt Lake City. As in the past, revenue will match expense with a contribution being made to fund balance. Year- to-year, revenue and expense will decrease by $1,123,186 after a contribution to fund balance of $1,379,437 has been factored in. The contribution to fund balance in calendar year 2005 is budgeted to be $1,295,186 more than in the amended calendar year budget for 2004. The major revenue and expense changes are as follows. Revenue, including a contribution to fund balance, is proposed to decrease in 2005 by$1,123,186. Given that capital expenditures for 2005 are roughly one-half of the needs of 2004, an increment of $1,295,186 in revenue will be contributed to fund balance for future needs. Continued low interest rates will incrementally reduce revenue by $138,000. With an improving economy, it is anticipated that tipping fee revenue will increase incrementally by 2% or $280,000. The improved economy is also anticipated to yield an incremental $30,000 in compost sales. Expenses are also proposed to decrease by $1,123,186. Proposed increases in expense include $142,200 for environmental and aerial monitoring, $55,000 in fuel expenses and $33,600 in maintenance expense for facilities 'n grounds, office equipment and software. Major decreases proposed in expense include $1,091,700 in capital expenditures, $141,618 in contract hauling and $110,000 in landfill closure costs. It is recommended that the Council approve the SLVSWMF budget. SOLID WASTE MANAGEMENT FACILITY Fees and Charges Use/ (Add To) Landfill Compost Salvage Interfund Other Fund Funding Interest Fee _ Sales Sales Charges Sources Balance Total FY0203 Budget-Adopted 990,000 14,750,000 340,000 180,000 105,000 260,000 (873,583) 15,751,417 _ FY0203-Mid year adjustments (195,000) 227,291 700,105 732,396 FY0203 Budget-Amended 795,000 14,750,000 340,000 180,000 105,000 487,291 (173,478) 16,483,813 FY0304 Budget-Adopted 813,000 14,000,000 370,000 220,000 105,000 256,000 (204,151) 15,559,849 FY0304 Budget-Mid year adjustments 1,000 119,900 120,900 - FY0304 Budget-Amended 813,000 14,000,000 370,000 220,000 105,000 257,000 (84,251) 15,680,749 Significant Changes Continued Low Interest Rates (138,000) (138,000) Improving economy yielding increased sales 280,000 280,000 Increases in wood and yard waste being processed 30,000 30,000 Fund Balance (1,295,186) (1,295,186) Total Changes (138,000) 280,000 30,000 (1,295,186) (1,123,186) FY0405 Budget 675,000 14,280,000 400,000 220,000 105,000 257,000 (1,379,437) 14,557,563 Personal Materials/ Charges/ Fund Budget History FTE Services Supplies Services Capital Balance Total FY0203 Budget-As Adopted 71.40 3,574,438 295,700 9,414,379 2,466,900 15,751,417 Technical Adjustments 25,056 (32,363) 739,703 732,396 FY0203 Budget-As Amended 71.40 3,599,494 295,700 9,382,016 3,206,603 16,483,813 FY0304 Budget-Adopted 72.40 3,738,118 265,700 9,315,031 2,241,000 15,559,849 FY0304 Budget-Mid year adjustments 0.35 162,732 (41,832) 120,900 FY0304 Budget-As Amended 72.75 3,900,850 265,700 9,273,199 2,241,000 15,680,749 Significant Changes 72.75 3,900,850 265,700 9,273,199 Adjustment to Base 39,570 (2,241,000) (2,201,430) Computer Supplies (10,200) (10,200) Small Equipment,value<$1,000 5,700 5,700 Maintenance of facilities'n grounds+office equip+s/w 33,600 33,600 Fleet fuel 55,000 55,000 Fleet maintenance (73,894) (73,894) Travel +Mileage Allowance 4,750 4,750 Vehicle Rental'n Replacement Charge (13,804) (13,804) Utilities 6,000 6,000 Environmental +aerial monitoring 142,200 142,200 Excavation services 40,000 40,000 Consulting: SLC City Engineering Support 6,210 6,210 Utility Master Plan (20,000) (20,000) Gas Collection/Flare 10,000 10,000 Compost Operation (2,500) (2,500) 3rd Party QA Specifications (12,000) (12,000) Contract hauling (141,618) (141,618) Landfill closure costs (110,000) (110,000) Loader 140,000 140,000 Tub Grinder 295,000 295,000 Heavy Duty Generator,qty 2 45,000 45,000 DNR Dozer 618,000 618,000 Submersible pumps 51,300 51,300 Miscellaneous adjustments 9,500 9,500 Total Changes 39,570 (4,500) (66,556) (1,091,700) (1,123,186) FY0405 Budget 72.75 3,940,420 261,200 9,206,643 1,149,300 14,557,563 10/28/2004 11:06 AM 2005 Landfill Budget bridge submitted budget sch SOLID WASTE MANAGEMENT FACILITY Bridge from County to City numbers FY0405 Budget Revenue Per County 15,937,000 plus: net addition to fund balance (1,295,186) plus: loss on sale of vehicles Per City 14,641,814 14,557,563 Expenses Per County 16,115,367 less: depreciation (2,275,000) less: loss on sale of vehicles (1,000) less: indirect costs (431,104) add: capital 1,149,300 Per City 14,557,563 14,557,563 (0) 10/28/2004 11:06 AM 2005 Landfill Budget bridge submitted budget sch