Some Thoughts on County Solid Waste Fees
Author: Bill Jarocki - Broadwater County Administrative Officer
Some Thoughts on County Solid Waste Fees
Bill Jarocki
Broadwater County Administrative Officer
I’m Bill Jarocki and I’m the Broadwater County Administrative Officer. Since my first day on the job, November 6, 2023, I have been involved with the challenge of sustainably financing the solid waste operations of the County.
Except for the southernmost part of Broadwater County, residents and businesses are customers of the County Solid Waste District. Solid waste collection and disposal services are paid for through assessments and other specific charges. In government accounting terms, the solid waste operations are managed in an enterprise fund. The reason is that the full costs of service are supposed to be paid for by those who use that service. This is different from general fund services. Think of it this way, if you want to watch Netflix you pay for the monthly subscription.
That’s how it’s supposed to work. Historically, in Broadwater County citizens have decided (through their elected representatives) to use a sort of hybrid approach. Those in the District pay an annual assessment for service which is added to their property tax bill paid once or twice a year. This system works well if the annual assessments are accurate and actually collected. For the most part, over time most customers paid their assessments and the solid waste enterprise fund had run like a business; costs offset by revenues. And as you would expect, the solid waste enterprise is a not-for-profit business.
But we’ve uncovered a problem and that’s why I’m writing to you. I like to look at the trends of revenues and expenses so that we can construct an accurate budget. Expenses drive the need for revenue and in solid waste, we look at setting the customer’s annual assessment (and other fees) to meet the level of expense. Just so you know my budgeting mantra, it is this: We will provide the best service, at the least cost, to the most people, for the longest period of time.
With all of that as background, here’s the bottom line.
Until 2022 solid waste assessment revenues gradually increased as the customer base grew. In fiscal year 2022, we anticipated revenues accordingly. At the close of that fiscal year, our accounting records showed a significant decline in revenue. And when you collect revenue only twice a year, it’s hard to see that coming. We had a deficit that resulted from running the business at a loss.
The County Solid Waste Operation didn’t overspend. It turns out that not all the customers paid in.
You have a right to ask why. And we’re working on it. At the outset, I mentioned that I have been tasked with recommending a strategy to make the solid waste enterprise fund financially sustainable. You’ll be hearing more about this project and the work of the team we’ve put in place to crank out the analysis of facts and data as we focus on this challenge.
We will do the detective work to discover (and explain) why customers had/have not paid their assessments and/or why the number of assessments had/have changed. Working with the County Solid Waste Advisory Board, the Public Works Department managers and the Board of Commissioners, I will be striving to meet our goal of providing the best service at the least cost for the most customers for the longest period of time.
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