9053-19 - Adopt County Solid Waste Mangement Plan

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Cuyahoga County Solid Waste Management Plan Update (December 2018) Chapter 6: Budget B. Revenue 1- Background There are several mechanisms that solid waste management districts can use to raise the revenue necessary to finance the implementation of their solid waste management plans. The most common are disposal fees and generation fees. Before a generation or disposal fee can be collected, it must first be approved by local communities through the plan ratification process which allows communities to vote on the plan and the fee mechanism. The types of funding mechanisms include the following: Disposal Fees (See Ohio Revised Code Section 3734.57(B)) This funding mechanism is used by SWyW[/s that have solid waste landfills within their borders. Disposal fees are collected on each ton of solid waste that is disposed in landfills located within the levying SWMD. Generation Fees (See Ohio Revised Code Section 3734573) Generation fees may be used by SWMD's that do not have solid waste landfills within their borders. Generation fees are collected on each ton of solid waste that is generated within the levying SVVMD and accepted at either a transfer facility or landfill located in Ohio. Rates and C (see Ohio Revised Code Section 343.08) Contract Fees (see Ohio Revised Code Sections 343.02 and 343.0) Other Sources of Revenue, • Revenue from the sale of recyclable materials; • Userfees (such os fees charged to participate /n scrap tire and appliance collections); • County contributions (such as from the general revenue /uno); • Interest earned on cash balances; • Grants 2. District Revenue for the Plan Period The Cuyahoga County 8WMDfunds its operations and plan implementation using a generation fee. The generation fee is currently $1.50 per ton and currently provides approx. $1.8 million in annual revenue. Supplemental revenue comes from five sources — grants, compost bin sales, illegal dumping fines, C&DD fees and other miscellaneous sources. Supplemental revenue will decline during the planning period because a major source of funding the District received from 2011 to 2017 will come to an end. This was $1 million infunding from the Northeast Ohio Regional Sewer District. The District plans to maintain its generation fee at the current $1.50 per ton level until the end of 2022. Beginning in 2023, the generation fee will increase by $0.50 per ton, bringing the fee to $2.00 per ton. The District is able to maintain its generation fee at the current $1.50 per ton level for the first four years of the planning period even though annual expenditures will exceed revenues by approximately $300,000 -$4UO,OOO annually. This is due to having an existing fund balance from which it can draw upon for a period of time but will need to maintain a minimum reserve of $1.5