Subject:
Title
Resolution authorizing an interfund loan from the Solid Waste Revenue and Operating Fund to the Lealman Solid Waste Collection and Disposal Fund, supplementing the Fiscal Year 2024 Operating Budget and recognizing unanticipated revenue for the Lealman Solid Waste Collection and Disposal Fund.
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Recommended Action:
Recommended Action
Conduct a public hearing and adopt by resolution a loan from the Solid Waste Revenue and Operating Fund to the Lealman Solid Waste Collection and Disposal Fund (Lealman Solid Waste) to maintain fund solvency and adequate operating expense reserves and supplementing the Fiscal Year (FY) 2024 budget.
• The resolution is consistent with the direction given by the Board of County Commissioners in July 2023.
• The resolution loan amount is $300,000.00.
• The loan term is six fiscal years, with the first payment due at the end of FY25. The final balance payment is due at the end of FY30.
• The annual simple interest rate for FY25-FY30 is the Blended Composite Rate (BCR) calculated annually by Clerk Finance. The BCR for FY24 is 3.85%.
• Recognize $300,000.00 of revenue in the Lealman Solid Waste Budget through an amendment by resolution.
• Funding for the second (yearly) loan payment is included in the FY25 Proposed Budget.
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Strategic Plan:
Practice Superior Environmental Stewardship
3.4 Reduce/reuse/recycle resources including energy, water, and solid waste.
Deliver First-Class Services to the Public and Our Customers
5.1 Maximize partner relationships and public outreach.
5.3 Ensure effective and efficient delivery of County services and support.
Summary:Summary
The Resolution authorizes an interfund loan from Solid Waste Operating to Lealman Solid Waste to meet contractual obligations and maintain adequate operating expense reserves and supplementing the FY24 Adopted Budget.
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Background Information:
Since FY21, Lealman Solid Waste reserves have been used to offset differences between special assessment revenue and increasing operating costs.
In January 2023, service for 700+ units, more than double the increase budgeted for in FY23, was added to the collection and disposal contract.
In July 2023, the Board directed the Solid Waste Department to execute an interfund loan to supplement initial cash flow needs in conjunction with a series of $24.00 per household/year rate increases effective FY24-FY26 pending Board approval.
Lealman customers had not experienced a rate increase from FY16 until FY24 when the Board approved an increase from $192.00 per household/year to $216.00 per household/year.
Fiscal Impact:
Solid Waste Operating -
Funding for the loan to Lealman Solid Waste is a non-recurring transfer from Solid Waste Operating.
Fiscal impacts of the loan transfer and repayment are negligible.
Revenue of $30,000.00, as a loan repayment from Lealman Solid Waste, is included in the FY25 Proposed Budget.
Lealman Solid Waste -
Loan payments are funded through the non-ad valorem special assessment levied on Lealman Municipal Service Benefit Unit (MSBU) property owners.
Total FY25-FY30 loan payments are projected to be $350,447.00 of which $50,447.00 is total interest paid.
Approval of the attached resolution recognizes and appropriates unanticipated revenues in the amount $300,000.00 to Lealman Solid Waste.
A loan payment of $30,000.00 is included in the FY25 Proposed Budget.
Staff Member Responsible:
Chris Rose, Director, Office of Management and Budget
Paul Sacco, Director, Solid Waste Department
Partners:
N/A
Attachments:
Resolution 24-XX
Exhibit A
Notice of Public Hearing
Budget Amendment Request