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HomeMy WebLinkAbout09. 19-327 JUNE 11, 2019 19-327 RESOLUTION (CARRIED 6-0 LOST LAID OVER WITHDRAWN ) PURPOSE: APPROVE WINNEBAGO COUNTY RECYCLING SURPLUS REVENUE BALLOT INITIATED BY: CITY ADMINISTRATION WHEREAS, the City of Oshkosh currently has a recycling agreement with Winnebago County; and WHEREAS, Winnebago County has asked responsible units of government with signed recycling agreements to consider disposition of surplus commodity revenue; NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Oshkosh that the attached ballot is approved and the proper City officials are hereby authorized and directed to execute and deliver the attached to the Winnebago Solid Waste Management Board. City f W Oshkosh MEMORANDUM TO: Honorable Mayor and Members of the n Council FROM: James Rabe,Director of Public Wor s DATE: June 6, 2019 RE: Approve Winnebago County Recycling Surplus Revenue Ballot BACKGROUND The City of Oshkosh has an agreement to deliver all recyclable materials(paper&containers) to the Winnebago County Solid Waste Management Board. Winnebago County sells this recyclable material for all municipalities involved with their program. The communities of Winnebago County are asked at times to decide how to handle this revenue. Winnebago County is requesting this revenue be returned to the communities except for $50,925, which is needed to cover the budget deficit for the Solid Waste Management Board. ANALYSIS Winnebago County has a budget deficit because of a $311,697 debt service charge for construction of the Tri-County Single Stream Recycling Facility. If the participating municipalities don't cover this budget deficit with funding from the commodity revenue, Winnebago County will need to raise their $10/ton recycling material tipping fee to cover their expenses. FISCAL IMPACT The 2019 budget anticipated a $16,700 reimbursement for recycling surplus revenue. After the $50,925 expense is allocated to all communities, Winnebago County calculated the actual revenue payment for the City of Oshkosh to be $12,435.40 for 2019. The revenues being generated from recycling commodities have been fluctuating greatly in the past few years. The current trade wars taking place federally have significantly impacted the sales of these commodities to foreign countries. l:\Engineering\Tracy Taylor\Memos to Mayor&Common Council\2019\Approve 2019 Winnebago Co Page 1 of 2 Recycling Surplus Revenue Ballot_6-6-19.docc #•I t,, i„ City f Oshkosh RECOMMENDATIONS Staff recommends approval of the resolution allowing Winnebago County to retain the $50,925 of surplus recycling revenue in order to "break even" and distribute the remaining $36,093 of surplus recycling revenue to the Signing Municipalities. Approved: Mark A. Rohloff City Manager JER/tlt I:\Engineering\Tracy Taylor\Memos to Mayor&Common Council\2019\Approve 2019 Winnebago Co Page 2 of 2 Recycling Surplus Revenue Ballot_6-6-19.docx LANDFILL/ADMINISTRATION SOLID WASTE/RECYCLING (920) 232-1800 TRANSFER STATION FOX CITIES • (920)232-1850 (920) 727-2884 FOX CITIES FAX(920)424-1189 (920)727-2896 100 W. COUNTY RD. Y FAX(920)424-4955 OSHKOSH, WI 54901 ECEl ED Winnebago County LANDFILL GAS FACILITY www.co.winnebago.wi.us Solid Waste (920)232-1800 MA M Y 2 2019 FAX(920)424-7761 PUBLIC WORKagement Board DEFT OF W 1SCON Wave of the Future ostA MEMORANDUM DATE: May 20, 2019 TO: Contracted Responsible Units FROM: Kathy Rutter—Recycling Program Manager RE: 2018 Surplus Commodity Revenue Ballot Enclosed is the Signing Municipality Recycling Surplus Revenue Ballot for 2018 Funds. Please consider the options carefully and return the ballot by August 1, 2019 with a copy of your city, town or village resolution or copy of the municipal board minutes authorizing this vote. Those of you who attended the Annual Financial and Informational Meeting on May 16th will recall the discussion on the 2018 Financial Report. A copy of the report is enclosed. The report revealed a surplus to the Signing Municipalities of $87,018 and a deficit to the County of $50,925. The primary reason behind this is that the Winnebago County Solid Waste Management Board (Winnebago County or County) assumes the entire responsibility of the debt service on the Tri-County Single Stream Recycling Facility. You will see on the enclosed Financial Report in the Debt Service line, the amount of$311,697 is in the County column only, with no portion of this passed to the Municipalities. The original 1993 County/Municipal Recycling Agreement shared debt service on the Winnebago County Material Recovery Facility with the Municipalities. When the Tri-County Single Stream Recycling Facility was constructed in 2008/2009, Winnebago County did not seek an Amendment to the 1993 County/Municipal Recycling Agreement to share the debt service. As a result, the debt service is shown only as an expense to the County and results in a deficit in 2018. The County relies on its share of revenues generated from Tri-County Recycling's material supply contracts and commercial tonnage revenues to offset Debt Service. In 2018, recycling processors across the nation experienced significantly depressed commodity market values and with this decline, the County was not able to cover Debt Service expenses with MRF revenues. It is also important to remember that as an Enterprise Fund, Winnebago County receives no 'tax levy' funds and charges tip fees to cover the expenses of the operation. A deficit in the single stream recycling program, therefore, would need to be covered by revenues from other areas of the operation, such as landfill tip fees. Winnebago County strives to keep landfill tip fees as low as possible for our Municipalities and customers. The alternative to using landfill tip fees to cover the recycling deficit would be to reduce the recycling revenue rebate to the Signing Municipalities. The enclosed ballot provides our Municipalities the ability to consider this option. In so doing, the Signing Municipalities would still receive surplus revenue in the amount of $36,093 and allow the County to 'break even' on the recycling program. I have enclosed a spreadsheet which provides the dollar amounts each Signing Municipality could expect to receive if the ballot results allow the County to rebate $36,093. Thank you for carefully considering the enclosed ballot. Please feel free to contact me at (920) 232-1853 or khutter©co.winnebago.wi.us with any questions or clarifications on the ballot or financial report. Winnebago County Solid Waste Management Single-Stream Material Recovery Facility Unaudited Income Statement December 31,2018 Municipal Surplus/Deficit Summary Tonnage Thru December 2018 Actual Budgeted $ 30.11 Municipal Revenue per ton Signing Municipalities 12,386 12,000 $ 23.09 Municipal Expense per ton County 3,434 2,000 $ 7.03 Municipal Surplus/(Deficit)per ton Total 15,820 14,000 Budget Actual Signing County Revenue Total Total Municipalities Commodity Revenue $ 300,000 $ 270,122 $ 211,488 $ 58,635 Commodity Revenue(Shared BOW) - 260,251 - 260,251 SSR Revenue(RU tip fees) 65,000 63,632 49,820 13,812 Cost Share(Outagamie County) SS Hauling 130,000 135,769 106,298 29,471 Cost Share(Outagamie County)Compactor 3,000 6,834 5,350 1,483 Total Revenue $ 498,000 $ 736,609 $ 372,956 $ 363,653 Budget Actual Signing County Expenses Total Total Municipalities Labor Costs $ 167,979 $ 160,495 $ 125,657 $ 34,838 Travel 2,035 713 558 155 Office 6,600 4,937 3,866 1,072 Operating Expenses 7,750 6,935 5,430 1,505 Education/Advertising 2,000 1,322 1,035 287 Repairs 10,050 8,258 6,466 1,793 Utilities 8,500 7,250 5,676 1,574 Contracts 177,850 167,539 112,690 54,849 Miscellaneous 944 945 740 205 Debt Service 313,000 311,697 - 311,697 Depreciation 23,400 30,425 23,821 6,604 Total Expenses $ 720,108 $ 700,516 $ 285,938 $ 414,578 Net Surplus/(Deficit) $(222,108) $ 36,093 $ 87,018 $ (50,925) Tonnage Thru December 2018 Actual Budget Signing Municipalities 12,386 12,000 County 3,434 2,000 Total 15,820 14,000 Winnebago County Solid Waste Management Material Recovery Facility Year Net Surplus/(Deficit) Total County Signing Muni's 1995 891,709 254,209 637,500 (1) 1996 (106,122) (53,612) (52,510)(1) Reduce Debt Funding (584,990) - (584,990) 1997 68,362 6,808 61,554 (2) 1998 47,847 (33,250) 81,097 (2) 1999 (114,586) (44,747) (69,839)(2) 2000 234,571 30,246 204,325 (2) 2001 (93,822) (26,249) (67,574) 2002 37,144 (31,004) 68,149 (2) Reduce Debt Funding (158,469) - (158,469)(3) 2003 63,099 13,199 49,900 (2) 2004 471,432 85,786 385,646 (2) 2005 389,568 41,489 348,079 2006 238,580 55,643 182,937 Refund Portion of Surplus (523,047) - (523,047)(4) 2007 252,971 49,451 203,520 Refund Surplus (766,278) - (766,278)(5) 2008 469,656 44,236 425,420 (6) 2009 (28,459) (142,690) 114,231 Refund Surplus (539,651) - (539,651)(6) 2010 109,394 (221,493) 330,887 Refund Surplus (330,887) (330,887)(7) 2011 780,911 (171,470) 952,381 Refund Surplus (780,911) (780,911)(8) Signing Munis Vote to Offset County 2011 Deficit - 171,470 (171,470)(9) 2012 194,445 (160,614) 355,059 (10) Signing Munis Vote to Offset County 2012 Deficit - 160,614 (160,614)(11) 2013 77,384 (112,265) 189,649 (12) Signing Munis Vote to Offset County 2013 Deficit - 112,265 (112,265)(13) 2014 139,490 (3,956) 143,446 (14) Refund Surplus (139,490) 3,956 (143,446)(15) 2015 (91,082) (136,406) 45,324 (16) Refund Surplus 91,082 136,406 (45,324)(17) 2016 195,723 51,906 143,817 (18) Refund Surplus (195,723) (51,906) (143,817)(19) 2017 535.224 271,431 263,793 (20) Refund Surplus (535,224) (271,431) (263,793)(21) 2018 36,093 (50,925) 87,018 (22) Total Net Surplus/(Deficit) 335,944 (22,903) 358,847 (1) Used to reduce debt funding for second expansion in 1996 as authorized. (2) Excess commodity revenue was reserved for tipping fee stabilzation as authorized. (3) Used to pay off all remaining debt. (4) 2005-2006 Refunded surplus$523,047. (5) 1997-2004 and 2007 Refunded surplus 766,278. (6) 2008-2009 Refunded surplus$539,651. (7) 2010-Refunded surplus$330,887. (8) 2011-Refunded surplus$780,911. (9) 2011-County maintain$171,470 to cover deficit. (10)2012-Surplus revenues$355,059. (11)2012-County maintain 5160,614 to cover deficit.Refunded$194,445. (12)2013-Surplus revenues$189,649. (13)2013-County to maintain$112,265 to offset deficit.Refunded$77,384. (14) 2014-Surplus revenues$143,446. (15)2014-Refunded surplus$143,446. (16) 2015-Surplus revenues 545,324. (17) 2015-Refunded surplus$45,324. (18) 2016-Surplus revenues$143,817. (19)2016-Refunded surplus$143,817 (20)2017-Surplus revenues$263,793. (21)2017-Refunded surplus$263,793. (22)2018-Surplus revenues$87,018. Note: 2016 County$51,906 to be allocated to reserve fund per the SWMB 4/5/2017. Option#1 Winnebago County shall maintain$50,925.00 of the surplus recycling revenue to avoid a 2018 County recycling deficit and rebate$36,093.00 to the Signing Municipalities based on the Municipality's actual tonnage processed and sold for year 2018. 2018 Surplus Commodity Revenue Distribution Based on Tonnage 2018 SS Municipality Tonnage %of Refund $ Refund Town of Algoma 624.6 5.04% $ 1,820.03 Town of Black Wolf 265.5 2.14% $ 773.81 Town of Clayton 461.8 3.73% $ 1,345.70 Village of Fox Crossing 1,342.0 10.84% $ 3,910.74 Town of Neenah 369.3 2.98% $ 1,076.09 Town of Nekimi 126.5 1.02% $ 368.60 Town of Omro 133.0 1.07% $ 387.69 Town of Vinland 207.7 1.68% $ 605.14 Town of Winchester 152.3 1.23% $ 443.67 Town of Winneconne 258.4 2.09% $ 753.03 Town of Wolf River 75.5 0.61% $ 220.13 Village of Winneconne 230.1 1.86% $ 670.47 City of Menasha 1,385.9 11.19% $ 4,038.76 City of Neenah 2,227.2 17.98% $ 6,490.33 City of Omro 258.5 2.09% $ 753.41 City of Oshkosh 4,267.3 34.45% $ 12,435.40 Total Tonnage 12,385.7 100.00% $ 36,093.00 Total Refunded $ 36,093.00 WINNEBAGO COUNTY SOLID WASTE MANAGEMENT BOARD SIGNING MUNICIPALITY RECYCLING SURPLUS REVENUE BALLOT FOR 2018 FUNDS MAY 16, 2019 ARTICLE IX FURTHER AMENDMENTS The Winnebago County Solid Waste Management Board (Winnebago County or County) and the Signing Municipalities agree that this initial Agreement may be further amended and/or supplemented by written agreement of both the County and Signing Municipalities representing 70% of the total population of Signing Municipalities. ARTICLE VI FUNDING B. The County shall have the right to collect any and all revenues from the sale of recycled materials processed by the County under this Agreement. 1. From the time of the County MRF's opening until December 31, 1994, said revenues from Signing Municipalities shall be applied to the cost of construction, purchase and operation for all structures, equipment and personnel required by the County to perform its obligations under the Agreement. In the event that revenues from Signing Municipality processing fees and material sales exceed the cost of program operation, the net profit shall be rebated after year's end to Municipalities signing this Agreement. Rebates shall be based upon each Municipality's actual tonnage processed during that calendar year. 2. After January 1, 1995 the processing fee per ton shall be set to reflect the anticipated cost of services provided. The County shall maintain revenue rebates from Signing Municipality material sold during the year 2018 in the amount of fifty thousand, nine hundred and twenty-five dollars ($50,925.00) to avoid a 2018 recycling deficit and rebate thirty-six thousand, ninety-three dollars ($36,093.00) to the Signing Municipalities. Please check the appropriate box for your municipality's choice, sign and indicate individual title, date and return this ballot on or before August 1, 2019 (include a copy of your city, town or village resolution or a copy of the municipal board meeting minutes authorizing this vote). Winnebago County shall maintain $50,925.00 of the surplus recycling revenue to avoid a 2018 County recycling deficit and rebate $36,093.00 to the Signing Municipalities based on the Municipality's actual tonnage processed and sold for year 2018. Winnebago County shall refund the recycling revenue surplus of $87,018.00 to Signing Municipalities based upon each Municipality's actual tonnage processed and sold for year 2018. Signature Print Name Municipality Title Date Signed