Agenda - Council - 05/31/1983 - Laserfiche WebLink

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local unit of government, school district and special taxing, districts annually during a facility.~.s operation. The payment should be calculated at the curren'{ s~ar mill rate~ an~ should be over and above any statutorZ levy limitations.- The taxes or PILOT should be based on an industrial property tax classification rate. The industrial classification permits application of the highest tax rate allowable. In principle, the PILOT should be paid by the users of the landfill or resource recovery facility--that is, the waste generators. Th~ paymen~ can be accomplished by a taxing mechanism requiring the coun~t~ or other p.u~lic bodS to compensate the mu~icip.ality or townshi~ the amount of taxes levied thereon for municipal or township purposes based on an indus- tria'l property tax classification rate or the countS shall contract with the municipalits.gr township for a PILOT. Waste facilities, particularly landfills, create some uncertainty about the future value of the land and adjacent properties, not to mention other adverse environmental or socioeconomic impacts upon the host com- munity. Consequently, the Legislature should require all owners of solid waste facilities to compensate the municipality or township for host!ng the facility. The Legislature should establish compensation based upon a percentage of the weight, volume or gross receipts of the waste facil- ity. The mechanism for payment should be determined through negotiation between the waste facilitx, owner and the local unit of government. The mechanism maS include a lump sum pasmegt~ annual payment or other mutuallS acceptable condition. If an a~reement cannot be reached~ the Legislature should grant the Council the authority to establish an agree- ment. The advisory committee could not agree on how to determine the amount of compensation to the local unit of government. There are advantages and disadvantages to using weight, volume or gross receipts. Use of weight would require landfills that do not have scales to install them. Using volume, can be a problem because much of the waste is compacted further by landfill equipment. However, a charge would be based on the volume of waste received at the landfill gate. A percentage of gross receipts of a private landfill would compensate the community based on actual operation costs. A percentage of gross receipts from a county-owned landfill may not, but rather reflect cost of the entire waste management system. Another potential problem is that payment for solid waste disposal may be made at a transfer station rather than at a landfill. In that case, the local unit of government would receive nothing. Most other states use weight or volume to finance their compensation funds for landfills. 15 I I ! I I I I I I I I I I I I I I I