Agenda

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ARF- 1833

Regular Agenda Item 2- I

Regular BOS Meeting

Meeting Date:	06/04/2013
Submitted For:	Sharon Winters
Submitted By:	Shannon Coons, Fiscal Services Manager, Public Works Division
Department:	Public Works	Division:
Fiscal Year:	FY 2013	Budgeted?:	Yes
Contract Dates Begin & End:	FY2013	Grant?:	No
Matching Requirement?:	No	Fund?:	New

Information

Request/Subject

Recycle /Landfill Expansion approval to create new fund

Background Information

In 2002, Gila County began preparing for the Russell Gulch Landfill expansion. The landfill has almost reached its capacity in the cells that were prepared in the early 1990s and now has to move toward the north cells. This area is used for office and storage facilities but soon will be covered by landfill waste. Saving for expansion of cells has been a long process and we are behind in our monetary projections. In order to see exactly where we are with the funds and separate the operations costs, we are asking permission to create another fund just for the landfill expansion.

Evaluation

The latest report shows we need a total of $2.2 million dollars to pay for the Russell Gulch expansion. Our time frame is no more than 2 years, 2016 to begin to expand the landfill to use the new cells. Transferring the amount of $1,600,000 from Fund 6850-Recycle Landfill Fund to a new fund to be known as Fund 6855-Russell Gulch Expansion Reserve will allow us to keep track of the expansion money more efficiently.

To obtain $600,000 in 2 years, we are considering some options, one would be to increase our tipping fees or add a construction surcharge, or we could take out a loan. The current tipping fees are $3.22 short from our 2003 rate plan to cover this expansion with gradual increases. The last time we increased the rate was July 2008 and in January 2010 we raised the minimum load rate to $5.00. The landfill operation saves the County residents and businesses a lot of money and it is not subsidized by taxes. Every Gila County citizen benefits from having access to the landfills and we plan on maximizing its future to ensure that future residents are not paying the high price of shipping out the waste to another county. We will make a recommendation to the Board of Supervisors in the next meeting.

Conclusion

Moving the landfill expansion money into its own fund will help us determine how much more we will need and also keep it from being used elsewhere. We will dedicate a minimum of 48% of the net revenue and expense from operations Fund 6850 to build the Russell Gulch Expansion Reserve Fund. The Gila County Recycle/Landfill team is dedicated to keeping the expenses at a minimum while protecting the future of the landfills and offering the lowest cost to its customers.

Recommendation

The Recycle/Landfill Department Manager recommends approval for creating a new accounting fund to be known as Fund 6855-Russell Gulch Expansion Reserve.

Suggested Motion

Information/Discussion/Action to approve the creation of a new accounting fund to be called Fund 6855-Russell Gulch Expansion Reserve, and to authorize the transfer of $1,600,000 of funds from Fund 6850-Recycle Landfill Fund into Fund 6855. (Sharon Winters)

Attachments
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