Finance Highlights 2006 0405 - Laserfiche WebLink

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The third type of municipal services are general City services, such as police, fire, libraries, parks, recreation anal senior programs. V~liile these General Fund activities are supported by a variety of sources, City solid waste franchise fees are General Fund revenues, which are part of the mix of supporting these critical activities throughout the City. ANALYSIS Solid Waste Services Public Works has developed the attached table "ACI Ratepayers Costs" of direct solid waste services and their costs, as provided by the ACI Franchise. The total cost is $768,000. Oro Loma's L-3 pro-rata share of these services (40%) totals $307,000. Because the Waste Management's franchise fees (or their services) do not cover these direct benefits to L-3 customers, the City's other solid waste customers are subsidizing these services in the Oro Loma District. 5lreets and Roads The Engineering and Transportation Department calculates that 34% of the City's streets and roads are within the L-3 Area of the Oro Loma Sanitary District. Data from Oro Loma on the number of solid waste trucks, routes and customers is unclear and in the case of vehicles co-mingled with the rest of the District. Also, Waste Management considers such information proprietary. The L-3 Area customer base is weighted more residential than commercial-industrial than the City-ACI Area. Total solid waste tonnage is consistent with L-3 comprising 40% of the City. The City currently needs $6 million annually dedicated to street and road repair, rehabilitation and reconstruction to maintain the current Pavement Condition Index (PCI). The City is currently able to allocate $1.5 to $2 million amlually toward streets and roads leaving an aruiual shortfall of $4 million. If Oro Loma's L-3 Area is responsible for 34% of these costs, their aimual pro-rata, unfunded amount is $1,360,000. The proposed Municipal Services Fee can be used to fund street and road repairs. General City Services The proposed Municipal Services Fee can, like franchise fees, be used to support General Fund activities including public safety, parks, libraries, senior and youth recreation programs. The City currently faces a $3.1 million structural deficit. If passed, the proposed Business License Tax (Measure I) is projected to bring in $2 nvllion, leaving an annual deficit of $Ll million. The Oro Loma Area's 40% proportional share of this deficit would be $440,000.