08/24/93 - Laserfiche WebLink

Home

CASE # REVIEW CASHFLOW PROJECTIONS FOR LANDFILL FUNDS By: Jessie L. Hart, Finance Officer BACKGROUND: Attached are cashflow projections for the Landfill Tipping Fee/Abatement Activities Funds and the Landfill Trust Fund. These projections are based on the landfill having no activity after September of 1993. Landfill Tipping Fee/Abatement Activities Funds - EXHIBIT 1 - These funds account for activity with regards to all recycling activities and clean-up day. These funds are also the source of revenue for 25% of the Project Coordinators salary and 100% of the Environmental Specialist salary, as well as providing the seed monies for the Environmental Expo, Up until September of 1993, 75% of the tipping fee had been transferred to the Equipment Replacement Fund. The tipping fee will cease at that date and thus, a transfer will no longer take place. Based on these projections, it appears that the recycling activities and clean-up day can continue to be funded until 1999, without adding a charge to the residential utility bill However, this would result in total depletion of this funding source. Keep in mind, if there are any major changes in the manner in which the cap on the SCORE County Reimbursement is calculated or in the charges for collection of recyclable materials, there would be a dramatic impact on these projections. Landfill Trust Fund -; EXHIBIT 2 - This fund accounts for the monies that have been received as 10% of the landfill revenues. As with the tipping fees, these monies will cease coming in September of 1993. Other revenues into this fund include a portion of the landfill closure settlement and the remainder of the bond payments from MSAS (these monies were loaned to an MSAS project rather than doing a formal bond issue and will cease in 1996). It should be noted that $120,000 of interest earnings from this fund are dedicated to the Park Improvement Fund through 1995. As the projections indicate, at an average rate of return on our investments of 5%, there is a sufficient cash balance retraining after the Park Improvements Fund allocation each year through the analysis period.. It will be necessary to keep a minimum balance in this fund of $2,400,000 (with our annual average interest at no less than 5%) in order to meet our allocation to the Park Improvement Fund without dipping into the principal balance. Landfill Trust Fund - EXHIBIT 3 - This exhibit takes the Landfill Trust Fund and projects the activity through the year 2006. It is projected to utilize $60,000 each year for 10 years as one source of funding for the planned PubLic Works/Police building project as well as continuing to fund Park Improvements on an annual basis. Based on these projections, it appears feasible to: 1) continue to fund, at an appropriate level, park improvements; 2) fund a portion of the Public Works/Police building project; and 3) continue to maintain a balance of $2,400,000 in the fund. CO~ ACTION: No action required - based on discussion. Review Checklist: City Administrator Finance Officer