HomeMy WebLinkAbout2025-2030 Franchise Fee- Projected BalancesJon
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CITY COUNCIL AGENDA TRANSMITTAL
Council Mectim, Date: June 12, 2024
Agenda Item Title: City Council discussion on the Waste Management Franchise Fee for Fiscal
Years 2025-2030
Recommendation: Staff recommends that City Council set the Waste Management Franchise Fee
at 6% for Fiscal Years 2025-2030.
Background: On April 1212023 City Council set the Waste Management Franchise Fee of
3% from July 1, 2023 until October 1, 2024. This fee was collected by Waste Management and used to offset
the bad debt for their billing since the universal collection method went into effect July 1, 2023. The City
Council then approved Resolution R-23-37 on December 13, 2023 establishing its intent to use the uniform
method for collection via non -ad valorem special assessments for the cost of providing solid waste collection
and disposal services to properties within the incorporated area of the City. Effective October 1, 2024 the City
of Sebastian will begin making monthly payments to Waste Management for the universal residential waste
collection. The 6% franchise fee will be used to cover the tax discount for early payments, the fee by the Tax
Collector's Office, and to offset any deficits due to delinquent tax accounts.
If Agenda Item Reauires Exoenditm•e of Funds:
Budgeted Amount: N/A
Total Cost: N/A
Funds to Be Utilized for Appropriation: Residential Solid Waste Fund
Attachments:
1. Residential Solid Waste Fund Projected Balances —Fiscal Years 2025-2030
Administrative Services
^Departent Rev ew:
City Attorney Reviewr I/
Procurement Division Rveview, ifapplicable: Nth
City Manager Authorization: �� " -
Date: 4oh only
RESIDENTIAL SOLID WASTE FUND
PROJECTED BALANCES - FISCAL YEARS 2025-2030
RESIDENTIAL SOLID WASTE FUND
PROJECTED BALANCES
FISCAL YEARS 2025-2030
FY 24- 25
FY 25- 26
FY 26- 27
FY 27- 28
FY 28- 29
FY 29- 30
Customer Charges
$ 3,087,217
$ 3,179,834
$ 3,275,229
$ 3,373,486
$ 3,474,691
$ 3,578,932
Franchise Fee at 6%
185,233
190,790
196,514
202,409
208,481
214,736
Total Billed by County
3,272,450
3,370,624
3,471,743
3,575,895
3,683,172
3,793,668
98% Collection Rate
(65,449)
(67,413)
(69,435)
(71,518)
(73,664)
(75,873)
3.6% Discounts for Early Payments
(111,140)
(114,474)
(117,908)
(121,445)
(125,089)
(128,842)
2.0% Fee by Tax Collector
(61,917)
(63,775)
(65,688)
(67,659)
(69,688)
(71,779)
Net Collections
3,033,944
3,124,962
3,218,712
3,315,273
3,414,731
3,517,174
Investment Income
200
200
200
200
200
200
TOTAL REVENUES
3,034,144
3,125,162
3,218,912
3,315,473
3,414,931
3,517,374
Payment to Waste Management
3,087,217
3,179,834
3,275,229
3,373,486
3,474,691
3,578,932
TOTAL EXPENDITURES
$ 3,087,217
$ 3,179,834
$ 3,275,229
$ 3,373,486
$ 3,474,691
$ 3,578,932
BEGINNING FUND BALANCE
$ -
$ (53,073)
$ (107,745)
$ (164,062)
$ (222,075)
$ (281,835)
TOTAL REVENUES
3,034,144
3,125,162
3,218,912
3,315,473
3,414,931
3,517,374
TOTAL EXPENDITURES
(3,087,217)
(3,179,834)
(3,275,229)
(3,373,486)
(3,474,691)
(3,578,932)
ENDING FUND BALANCE
$ (53,073)
$ (107,745)
$ (164,062)
$ (222,075)
$ (281,835)
$ (343,393)
NOTE: The 98% Collection rate is the based on historical data and mayvaryfrom year-to-year. The
3.6% Discountfor Early Payments is based on the historyof collections of the Stormwater Fees and
mayvaryfrom year-to-year. With onlya 3% Franchise Fee, the Fund would run a deficit the first year of
at least $143,837 per year. Also, it should be noted that no provision is being made for administrative
assistance by City personnel. Future years assume a 3% increase in collection fees just as an
estimate.