Subject:
Title
Annual certificate of the Non-Ad Valorem Assessment Roll and Resolution increasing the Non-Ad Valorem Assessment for the Lealman Solid Waste Collection and Disposal District.
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Recommended Action:
Recommended Action
Approval of the annual certificate of the Lealman Solid Waste Collection and Disposal District Non-Ad Valorem Assessment Roll via public hearing.
• Approval provides the Tax Collector authority to collect a non-ad valorem assessment from Lealman Community residential property owners for Solid Waste collection and disposal.
• Coastal Waste & Recycling, Inc., is the currently contracted service provider and provides satisfactory service.
• Approval of the Resolution increases the Lealman Solid Waste Collection and Disposal assessment fee to $288.00 per year per unit from January 1, 2026, through December 31, 2026. This increase equates to as $48.00 increase over the previous year and is included in the Fiscal Year (FY) 2027 Proposed User Fee Schedule.
• The Calendar Year (CY) 2026 estimated Non-Ad Valorem assessment revenue is $1,846,800.00.
• This proposed Non-Ad Valorem assessment is estimated to generate revenue of $2,136,880.00 in CY27.
• Non-ad Valorem assessment revenue is receipted to the Lealman Solid Waste Collection and Disposal Fund, included in the Lealman Solid Waste Department Annual Operating and Capital Budget.
Authorize the Chairman to certify the Non-Ad Valorem Assessment Roll to the Tax Collector prior to September 15, 2026.
Authorize the Chairman to sign and the Clerk of the Court to attest the Resolution increasing the Non-Ad Valorem Assessment for the Lealman Solid Waste Collection and Disposal District.
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Strategic Priorities:
Resilient Infrastructure and Environment
1.4 Improve environmental quality.
Healthy and Safe Communities
2.1 Improve public health.
Summary:
Summary
The adoption of this Non-Ad Valorem Assessment Roll is an annual requirement to provide funds to be collected uniformly to pay for the costs of solid waste collection, disposal services, and administrative costs of the district. The assessment roll is for the period January 1, 2026, through December 31, 2026.
The increase to the assessment is necessary to maintain a fund balance for fuel and solid waste collection contract CPI in January of each year, solid waste tipping fee increase, administrative costs, and loan debt service repayment.
Funds collected will pay for costs incurred in CY27.
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Background Information:
Beginning January 1, 2006, the District was created to provide uniform residential solid waste collection and disposal services within the Lealman community. The first assessment was set at $168.00 per residential unit per year.
In 2016 the assessment was increased from $168.00 per residential unit per year to $192.00 to capture costs of the newly awarded collection services contract.
The 2023 assessment was increased from $192.00 per residential unit per year to $216.00 and a $300,000.00 short-term loan from Solid Waste Department Enterprise Fund was transacted to stabilize the District fund. Both the assessment increase and loan were necessary to fund increased contract costs due to new customers, and annual adjustments for fuel and consumer prices index (CPI).
The 2024 assessment was increased from $216.00 per residential unit per year to $240.00per residential unit per year to maintain a fund balance necessary to cover administrative and contract costs currently at $225.12 per unit per year due to annual adjustments in fuel and CPI increases, and loan debt service repayment.
This proposed assessment increase from $240.00 to $288.00 per residential unit per year is necessary to maintain the fund balance to cover contract collection and disposal costs. Currently, the actual cost per residential unit per year is $243.36, adjusted for fuel and CPI in January of each year, solid waste tipping fee increase, administrative costs, and loan debt service repayment. Additionally, the FY2027 assessment increase encompasses funds required to build fund reserves ahead of the upcoming December 31, 2026, collection contract expiration.
A competitive procurement for a new collection contract is complete. The new collection contract rate will be $264.00 per residential unit per year.
Fiscal Impact:
The assessment will provide all revenue necessary to pay for collection and disposal services within the district, as well as all administrative costs associated therein. There is no impact on the General Fund. This proposed assessment increase is included in the FY27 Proposed User Fee Schedule.
The Non-Ad Valorem Special Assessment is included in the FY26 Adopted Budget and the FY27 Budget submission. The FY27 annual revenue is expected to increase 16.5% from the FY26 annual estimated revenue.
Staff Member Responsible:
Paul Sacco, Director, Solid Waste
Partners:
Lealman Community Association
Attachments:
Certificate to Non-Ad Valorem Assessment Roll (DR-408A)
2026 Non-Ad Valorem Assessment Roll for the Lealman District
Resolution Increasing the Non-Ad Valore Special Assessment Amount for the Servicing of the Lealman Solid Waste Collection and Disposal District