TO: Honorable Mayor & Members of the North Port Commission
FROM: Peter D. Lear, CPA, CGMA, City Manager
TITLE: Ordinance No. 2019-22, first reading, amending the Fiscal Year (FY) 2018-2019 Capital Improvement Program (CIP) Budget.
Recommended Action
Approve Ordinance No. 2019-22, amending the Fiscal Year (FY) 2018-2019 Capital Improvement Program (CIP) Budget.
Background Information
An Amendment to the FY 2018-2019 CIP Budget for additional funding in the amount of $127,000, as well as the re-appropriation of existing budget authority in the amount of $38,000.
Beginning in February 2013, China implemented aggressive inspection programs aimed at curtailing the high amount of contamination and now will no longer accept poorly sorted or dirty shipments of recyclable material from foreign export. Recycling revenue throughout the world has decreased, causing processing fees to increase with little or no market share. It is estimated that more than 800,000 tons of recyclables have been rejected by China since February 2018. A great deal of recyclable material has now become a waste with single stream recycling (all in one container). Unfortunately, the perception among many people throughout the United States is that everything is recyclable.
Single stream recycling has not aided the recycling market due to high contamination rates. It made recycling easier for the resident but more difficult for the processor and marketing brokers throughout the world to move the material.
• This has caused processing fees to increase and contamination rates to rise.
• Contaminated recyclables are being disposed in landfills.
Our plan is to maintain a dual stream collection system, maintain our clean quality recyclable material and utilize the area at 5455 Pan American Boulevard for a Recycling Center. At this location we will utilize an existing building and build an additional fabric shelter. One area will be for cardboard and paper, and the other for commingle material (glass, plastic and cans). The goal is to keep the quality of the material superior and reduce contamination.
SOLID WASTE IMPACT FEES FUND (156)
This is a request for a Budget Amendment in the Solid Waste Impact Fees Fund in the amount of $165,000 as per the following detailed description.
An Amendment to the FY2018-2019 CIP Budget for additional funding in the amount of $127,000 is requested for the purchase of a telescoping loader for the recycling center on Pan American Boulevard.
In order to fund the remaining $38,000 of the telescoping loader purchase, two amendments to existing budget authority are requested. These amendments to the FY2018-2019 CIP Budget will utilize $29,200 previously appropriated for the purchase of a New Front Load Truck, Project SW19VH and $8,800 previously appropriated for the purchase of the Recycling Center Structure, Project SW19RS. Both of these amounts are the result of savings recognized on current year projects funded with Solid Waste Impact Fees. Project SW19RS was established during FY2018-2019. The attachments to this amendment request are reflective of all Project SW19RS activity.
Increases to the Capital Improvement Program Budget Authority:
Solid Waste Impact Fees Fund (156): $127,000
Re-appropriation of Capital Improvement Program Budget Authority:
Solid Waste Impact Fees Fund (156) re-appropriation: $38,000
$29,200 from Project SW19VH
$8,800 from Project SW19RS
Strategic Plan
Financially Responsible City Providing Quality Municipal Services and meeting the City of North Port
Strategic Plan FY2018-2021 strategic priority of Efficient & Effective Government.
Financial Impact
The CIP Budget for FY2018-2019 will increase by $127,000 funded from fund balance reserves in the Solid Waste Impact Fees Fund (156). A fund balance analysis for this fund is attached.
Procurement
N/A
Attachments:
1. Ordinance No. 2019-22
2. Ordinance No. 2019-22 Exhibit A
3. Ordinance No. 2019-22 Exhibit B
4. Ordinance No. 2019-22 Solid Waste Impact Fee Fund Balance Report
Prepared by: Kimberly Ferrell, Finance Director
Department Director: Kimberly Ferrell, Finance Director