Section VIII. Cost and Financing of Plan Implementation

Ashtabula County Solid Waste Management District May 2, 2014

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Section VIII. Cost and Financing of Plan Implementation [ORC Section 3734.53(A)(9),(12) and (B)]

This section of the Plan identifies the funding mechanisms and the expenses related to District-sponsored programs and activities. These two forms of information are used to demonstrate that the District can implement the programs in the Plan and remain financially solvent throughout the planning period. A. Funding Mechanisms and Amount of Money Generated

1. District Disposal Fees (ORC Section 3734.57(B))

The District earned most of its revenue from a solid waste disposal fee in 2008. The disposal fee has always been the primary funding mechanism for the District. In 2008, the disposal fee schedule was $2.00 per ton for in-district waste, $4.00 per ton for out-of-district waste and $2.00 per ton for out-of-state waste. The disposal fee yielded $588,054 in revenue for the District in 2008. In 2009 and 2010, the District experienced declines in disposal fee revenue due to a reduction in waste generation and reduced waste receipts at the one active, publicly-available landfill for disposing solid waste in the District. That facility is the Geneva Landfill which is owned by Waste Management. The reduced waste generation was a result of the economic recession. At that time the landfill had less than 5 years of remaining capacity and landfill operators were reducing out-of-district waste receipts in order to extend the landfill’s life as they worked on a permit application to expand the landfill. Waste Management submitted an application for a permit-to-install (PTI) for lateral and vertical expansions at the Geneva Landfill on October 20, 2010. Ohio EPA approved the application on May 28, 2013. The new capacity approved by the PTI will provide an estimated 60 additional years of operating capacity. The budget in this plan is based on the disposal fee remaining a viable funding mechanism for the District throughout the planning period. Table VIII-1, “District Disposal Fee Schedule and Revenues Generated” presents the District’s actual and projected revenue from tiered disposal fees from 2008 to 2022. The tonnages listed in Table VIII-1 from 2008 to 2012 were calculated from the revenue reported in the quarterly fee reports the District submitted to Ohio EPA. Total revenue for 2013 was calculated by doubling the amount of revenue the District reported for the first two quarters of 2013. Projections for revenue to be earned on the in-district portion of the disposal fee are based on the amounts of waste Geneva Landfill is expected to accept from the District from 2014 to 2022 as presented in Table VI-4a. Revenue from the out-of-district portion of the disposal fee is expected to eventually increase to levels commensurate to 2008 after Waste Management constructs new capacity at the Geneva Landfill. However, in order to provide conservative revenue


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estimates, Ohio EPA based projections on Waste Management gradually accepting more waste from out-of-district sources over a period of several years, holding these projections constant after 2017. The 2017 disposal amount represents the average of out-of-district tons accepted at the Geneva Landfill from 2009 to 2012. Ohio EPA held the tons to be disposed from out-of-district sources from 2018 to 2022 constant at the 2017 rate. The tonnages were projected linearly from 2013 to 2017. Out-of-State sources of waste received at the landfill are historically very low, and there was not a clear trend in the historical amounts of waste received from these sources. Therefore, Ohio EPA averaged the quantities of out-of-state waste accepted at the Geneva Landfill from 2009 to 2013 and assumed the landfill would receive that quantity from 2014 to 2022.

Table VIII-1 District Disposal Fee Schedule and Revenues Generated

Year

Fee Schedule ($/ton) Tons Disposed in the District Total District Fee Revenue In-District

Out-of-District

Out-of-State

In-District Out-of-District

Out-of-State

2008 $2 $4 $2 102,060 95,974 19 $588,054

2009 $2 $4 $2 81,238 84,199 3 $499,276

2010 $2 $4 $2 82,063 61,973 12 $412,039

2011 $2 $4 $2 80,685 65,606 30 $423,853

2012 $2 $4 $2 78,703 59,330 115 $394,956

2013 $2 $4 $2 73,159 25,184 26 $247,104

2014 $2 $4 $2 79,897 35,832 37 $303,195

2015 $2 $4 $2 76,662 46,480 37 $339,319

2016 $2 $4 $2 73,674 57,128 37 $375,936

2017 $2 $4 $2 71,088 67,777 37 $413,357

2018 $2 $4 $2 68,510 67,777 37 $408,201

2019 $2 $4 $2 68,738 67,777 37 $408,657

2020 $2 $4 $2 68,965 67,777 37 $409,111

2021 $2 $4 $2 69,624 67,777 37 $410,429

2022 $2 $4 $2 69,846 67,777 37 $410,873

2023 $2 $4 $2 70,069 67,777 37 $411,319

Sample Calculations: Total District Fee Revenue = (In-district tons disposed x $2.00) + (out-of-district tons disposed x $4.00) + (out-of-state tons disposed x $2.00) Total District Fee Revenue in 2011 = (80,685 x $2.00) + (65,606 x $4.00) + (30 x $2.00) Total District Fee Revenue in 2011 = $423,853 Sources of Information: 2008-2013 District Quarterly Fee Reports

2. Generation Fee (ORC Section 3734.573)

In the reference year, the District did not collect revenues from a generation fee. The District does not intend to implement a generation fee during this Plan. Therefore, Table VIII-2 as prescribed by the Format was omitted.


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3. Summary of District Revenues

Table VIII-3, “Summary of Revenue Generated and Mechanisms Used” presents the variety of funding mechanisms used by the District. The District will rely almost entirely on revenue earned from the disposal fee to fund this Plan Update. Following is a discussion of miscellaneous funding sources that have generated revenue for the District in the past and the relevance of those other sources in revenue projections for the planning period. a. Grants

In the past, the District received grants from the Ohio Department of Natural Resources, Division of Recycling and Litter Prevention’s grant programs (these programs are now administered by Ohio EPA). Because these grants are highly competitive, SWMDs cannot rely on receiving grant funding as a continual funding source. Therefore, this Plan Update does not project that the District will receive grant funding during the planning period, although it is anticipated that the District may apply for those funds at some point during implementation of the Plan Update. b. Reimbursements

The District shares its staff with the Ashtabula County’s Community Services Division. In the past, Ashtabula County’s payroll system required the District to pay for the full salaries of its shared employees out of the District’s account. The County would then reimburse the District for the portion of the employees’ salaries that should have been paid by the Community Services Division. In its quarterly fee reports, the District reported these repayments as reimbursements. That is how these repayments are presented in Table VIII-3. At the end of 2010, the County replaced the existing payroll system with a new system that accounts for the salaries in the two departments separately. As a result, the District will no longer pay for the time that its employees spend working for the Community Services Division. The District reported reimbursements for the last time in the first quarterly fee report for 2011. The District is not projected to receive reimbursements related to employee salaries during the planning period. All future reported reimbursements will represent unanticipated returns of District money, such as unused grant funds.

c. Recycling Revenue

The District did not receive revenue from the sale of recyclable materials in 2008. In 2009, 2010, and 2011, the District did receive small amounts of revenue from the sale of recyclables. Some of that revenue was earned from lead-acid batteries and scrap metals that were collected at District-sponsored collection events. The District is not currently expected to provide collection events and is not projected to receive revenue


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from lead-acid batteries and scrap metals. The District has also periodically earned revenue on aluminum cans that were collected at the courthouse. The city of Ashtabula receives revenue from magazines that it collected at its transfer facility. However, the City retains those revenues. During the first two quarters of 2013, the District earned revenue on material collected through District-sponsored drop-offs. In total, the District received $7,858. It is anticipated that the District will continue to receive some revenue on recyclables collected through the drop-off program throughout the planning period. However, it is difficult to accurately project the amount of revenue that will be received due to fluctuations in the value of recycled commodities and other uncertainties. Therefore, Ohio EPA conservatively projected that the District will annually earn revenue commensurate to the amount received during the first two quarters of 2013 for each year of the planning period. All recycling revenue received will be used to offset the costs of implementing the drop-off and other collection programs. d. User Fee The District assessed a user fee at the annual HHW collection event in 2011. Due to its decreased revenue, the District discontinued providing several programs that it has historically provided. One of these discontinued programs is the HHW collection event. Thus, the District did not provide an HHW collection event in 2012 or 2013. This budget was prepared with the expectation that the District would not provide HHW collection events during the planning period. Consequently, no revenue from user fees is projected. If the District receives revenues greater than those projected, then the District may provide an HHW collection program. The conditions under which a program would be provided are explained in the subsection E, “Budget Priorities,” at the end of this section. If the District does provide a HHW collection event, then it is likely that the District will assess user fees.

Table VIII-3 Summary of Revenue Generated and Mechanisms Used

Year

Revenue Mechanisms and Amounts Generated

District Disposal

Fees ($)

Grants ($)

Reimbursements ($)

Recycling Revenue

($)

User Fee ($)

Total Revenue

Generated ($)

2008 $588,054 $0 $81,272 $0 $0 $669,326

2009 $499,276 $0 $4,586 $287 $0 $504,149

2010 $412,039 $12,000 $139,119 $116 $0 $563,274

2011 $423,853 $0 $23,655 $640 $1,455 $449,603

2012 $394,956 $0 $0 $0 $0 $394,956

2013 $247,104 $0 $339 $7,858 $0 $255,301

2014 $303,195 $0 $0 $7,858 $0 $311,053

2015 $339,319 $0 $0 $7,858 $0 $347,177

2016 $375,936 $0 $0 $7,858 $0 $383,794

2017 $413,357 $0 $0 $7,858 $0 $421,215


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2018 $408,201 $0 $0 $7,858 $0 $416,059

2019 $408,657 $0 $0 $7,858 $0 $416,515

2020 $409,111 $0 $0 $7,858 $0 $416,969

2021 $410,429 $0 $0 $7,858 $0 $418,287

2022 $410,873 $0 $0 $7,858 $0 $418,731

2023 $411,319 $0 $0 $7,858 $0 $419,177

Table VIII-3 continued Sample Calculations: Total Revenue Generated = (District Disposal Fees + Grants + Reimbursements + Recycling Revenue + User Fee) Total Revenue Generated in 2010 = $412,039 + $12,000 + $139,119 + $116 + $0 Total District Fee Revenue in 2010 = $563,275 Sources of Information: 2008-2013 District Quarterly Fee Reports

4. Loans

The District does not anticipate securing loans to facilitate plan implementation. Therefore, Table VIII-4 as prescribed by the District Solid Waste Management Plan Format was omitted for this Plan Update.

B. Costs of Plan Implementation

Table VIII-5, “Estimated Costs for Plan Implementation” provides information regarding the estimated annual costs of the programs and services that will be provided by the District in each year of the planning period. Table VIII-5 provides line items for each program the District is anticipated to fund in order to demonstrate that there will be sufficient funds available for the District to meet all of the requirements of this Plan Update. Those line items correspond to the programs as they are listed in the implementation schedule (Table VI-5), to the extent possible. The District spent more to fund programs in 2009 than it spent in 2008. The majority of this increase is the result of expenditures for the yard waste program and the Ashtabula County Health Department, which are discussed later in this section. Table VIII-5 is followed by narrative descriptions of each line item explaining how the cost projections were calculated. The narrative descriptions are numbered to correspond with the entries in Table VIII-5.


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Table VIII-5 Costs of Plan Implementation

Program or Activity 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

1. 1. District Administration 2.

a. Salaries $141,391 $151,124 $143,294 $59,688 $46,758 $52,299 $66,000 $60,000 $61,020 $62,057 $63,112 $64,185 $65,276 $66,386 $67,515 $68,662

b. Office Overhead $19,863 $37,431 $14,304 $9,318 $1,811 $1,247 $12,109 $12,327 $12,549 $12,775 $13,005 $13,239 $13,477 $13,720 $13,967 $14,218

c. Legal Services $5,674 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

d. Contract Services $9,810 $0 $0 $4,150 $0 $0 $0 $0 $25,000 $15,000 $10,000 $5,000 $0 $0 $0 $0

e. Sundry $1,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

f. Reimbursement to Ohio EPA

$0 $0 $0 $0 $0 $0 $1,000 $0 $0 $10,000 $15,000 $15,000 $0 $0 $0 $0

3. 2. District Recycling Programs 4.

a. Drop-Offs, City of

Ashtabula $40,000 $40,000 $40,000 $40,000 $0 $8,000 $4,000 $0 $0 $0 $0 $0 $0 $0 $0 $0

b. Drop-Offs, City of

Conneaut $19,000 $19,000 $9,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

c. Drop-Offs, City of

Geneva $15,195 $15,000 $15,000 $15,579 $15,000 $23,000 $4,000 $0 $0 $0 $0 $0 $0 $0 $0 $0

d. Drop-Offs, District $268,553 $282,185 $292,090 $228,181 $273,088 $220,242 $179,940 $183,240 $186,538 $189,896 $193,314 $196,794 $200,336 $203,942 $207,613 $211,350

e.

Institutional -

County Office

Building and

School Recycling

$11,997 $11,361 $8,884 $0 $0 $0 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000

f. Yard Waste

Management $13,875 $87,870 $40,337 $44,400 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

g. HHW Collection $18,015 $26,156 $10,427 $7,012 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

h. Scrap Tire

Collection $22,957 $17,441 $3,760 $18,797 $5,018 $6,096 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0


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Table VIII-5 Costs of Plan Implementation (continued)

Program or Activity 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

5. 3. District Education and Awareness Programs

a. Education and Awareness Materials

$3,896 $1,210 $0 $0 $383 $0 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500

b. District Assistance with PAYT

$0 $0 $0 $0 $0 $0 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

c. Outreach for New and Upgraded Programs

$0 $0 $0 $0 $0 $0 $10,000 $10,000 $5,000 $0 $0 $0 $0 $0 $0 $0

6. 4. Other District Programs

a. District Grant Program for Local Government

$0 $0 $0 $0 $0 $0 $50,000 $50,000 $50,000 $0 $0 $0 $0 $0 $0 $0

b. Health Department Funding

$31,371 $71,432 $62,742 $25,000 $40,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000

c. Assistance with Local Clean-Ups

$4,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

d. Litter Collection

Development $195 $0 $0 $579 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

e. Recycling Transfer

Station $0 $0 $0 $0 $0 $0 $50,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000

Total Expenses $626,792 $760,210 $640,338 $452,704 $382,058 $335,884 $409,549 $358,067 $382,607 $332,228 $336,931 $336,718 $321,589 $326,548 $331,595 $336,730

Sources of Information: Costs for 2008 through 2012 are as reported by the District in its quarterly fee reports for those years. Expenditures for 2013 were estimated based on the District’s expenditures during the first three quarters of 2013. Sample Calculations: See Appendix M


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The expenditures from 2008 to 2012 and the first three quarters of 2013 in Table VIII-5 represent actual expenses as reported on the District’s quarterly fee reports for those years. Expenditures for the fourth quarter of 2013 were calculated based on the average cost of each program during the first three quarters of the year. Expenditures for 2014 through 2022 are projections. There are some slight variations between the quarterly fee reports and Table VIII-5 due to differences in the District’s accounting practices. There are a number of programs that the District historically provided but which the District has not had the financial resources to continue providing. Examples include the annual household hazardous waste (HHW) collection event and providing funding to local communities to offset the costs of managing scrap tires. The District would like to retain the ability to offer some of these discontinued programs if its financial situation improves beyond what is projected in this Plan Update. Therefore, Ohio EPA, working with the District, developed a prioritized list of programs the District can provide if it receives more revenue than projected or spends less on required programs than is projected. This list of programs, along with the conditions that must exist for the District to implement the programs, is described in subsection F, “Budget Priorities” later in this section. Following are descriptions for the expense line items offered in Table VIII-5: 1. District Administration This category accounts for the expenses associated with staffing the District, office overhead, plan development and legal services.

a. Salaries

The District’s staff coordinates and implements all District programs and will provide much of the education and technical assistance called for in this Plan Update. In 2008, the District funded one full-time employee and two half-time employees. In 2010, the District began funding a half-time coordinator, a half-time program specialist and a quarter-time clerical support position. The expenses that are included in this expense line item are salaries, PERS, Worker’s Compensation, Insurance, Medicare and Dues. Prior to 2011, due to county fiscal practices, the District was charged for the entire salaries of the coordinator, program specialist and clerical support technician and reimbursed for the non-solid waste portion of their salaries at the end of year. As a result, the salary expense shown in the table is greater for 2008-2010. In 2011, the salary expense shown in Table VIII-5 decreases as a result of a change in the county practices. Refer to subsection A.3.b, Reimbursements, for more information.

Salary expenses are anticipated to increase a notable amount in 2014 and 2015 due to changes in healthcare. Beginning in 2016, salaries are expected to increase 1.7 percent annually through 2022. This increase is based on the Social Security Administration’s most recent Cost of Living Adjustment (COLA).


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b. Office Overhead

Office Overhead includes indirect costs allocation to the County, solid waste supplies, copier maintenance fees, travel expenses, computer equipment, legal notices, fuel for county vehicles, etc.

The District postponed paying for bills due to the County because of financial deficiencies. These postponed payments are reflected in the decrease in office overhead listed in the budget from 2012 to 2013. The deferred bills included the cost of renting County-owned office space and the utilities used to operate within the office space. In 2014, the District anticipates, based on its projected budget, that it will pay $12,109 to the County. The cost of office overhead is projected to increase 1.8 percent annually from 2015 to 2023. This increase is based on the annual rate of inflation that was published in the U.S. Consumer Price Index in June, 2013.

c. Legal Services

Legal Services include expenses related to legal advice and assistance for the District. The District did have legal expenses during 2008, but it does not anticipate that additional expenses for legal services will be incurred during the planning period.

d. Contract Services

Contract Services include expenses associated with preparing the District’s next solid waste management plan update. These expenses include surveys and technical assistance. e. Sundry Sundry includes office supplies. In 2008, the District reported having spent $1,000 for sundry purposes in its quarterly fee reports. Beginning in 2009, the District began reporting sundry expenses as “Office overhead.” f. Reimbursement to Ohio EPA In accordance with ORC 3734.551, when Ohio EPA writes a solid waste management plan a solid waste management district is required to provide reimbursement for certain expenses. The District will pay Ohio EPA $1,000 in 2014. The District will pay the remaining $40,000 after a three year delay. Ohio EPA encourages District representatives to contact Ohio EPA to discuss payment options.

2. District Recycling Programs This category includes the programs/activities that the District will fund related to Goal 1 and/or Goal 2.


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a. Drop-Offs, City of Ashtabula

The District annually awarded a $40,000 grant annually to the city of Ashtabula from 2008 through 2011 for its recycling programs which included the City’s recycling drop-offs. In 2012, due to budget limitations, the District did not provide the city of Ashtabula with funding. In 2013, the District suspended its entire contracted drop-off program, but continued to provide funding for the city of Ashtabula’s drop-off at the complex that houses the transfer facility. The District will continue to fund the City’s drop-off until the District obtains a contract to service the new drop-off network beginning in the second quarter of 2014. Expenditures associated with the City’s drop-offs after the first quarter of 2014 are included in the budget line item “2 d. Drop-offs, District.” Expenditures for 2013 and the first quarter of 2014 are based on the District’s invoices, which include cost per pick up, number of pick-ups per week, and length of service.

b. Drop-Offs, City of Conneaut

From 2008 to 2010, the District provided financial assistance to the city of Conneaut to aid with the expense of operating the additional drop-offs that were not provided by the District. Starting in 2011, the District stopped providing this assistance. The city of Conneaut’s drop-offs will be included in the Districts contract for the drop-off network. Therefore, no expenditures are projected for the City’s drop-off program.

c. Drop-Offs, City of Geneva

The District awarded approximately $15,000 in grant funding annually to the city of Geneva from 2008 through 2013. The grant covered the cost of staffing a drop-off site and maintaining curbside collection. This budget line item also includes funding the District provided to the City in 2008 and 2011 to purchase bags for litter collection activities. In 2013, the District suspended the county-wide drop-off program, but continued provide funding to the city of Geneva for the drop-off. The District will provide the City with a total of $27,000 from 2013 to 2014, but will discontinue the funding once the new drop-off network is implemented. When the District launches its new drop-off network in the second quarter of 2014, the city of Geneva’s drop-off will be included in the overall drop-off contract and all costs associated with the drop-off are included in the budget line item “2 d. Drop-offs, District.” Expenditures for 2013 and the first quarter of 2014 are based on the District’s invoices, which include cost per pick up, number of pick-ups per week, and length of service. d. Drop-Offs, District

In 2008, of the 16 drop-off locations that were available throughout Ashtabula County, the District contracted for collection, transportation, and processing services for 13 locations. In mid-2013, the District suspended the contract with the private waste service provider for providing drop-off locations. However, as was explained earlier, the


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District provided money to the city of Ashtabula and the city of Geneva to help those communities continue to provide their municipally operated drop-offs. In addition, Waste Management continued to provide a drop-off at the Geneva Landfill. Expenses for 2013 represent the cost of providing drop-offs for the first three quarters of the year when all of the sites were available. When the program is re-launched in 2014, the District is projected to spend $30,000 to purchase at least thirty new eight cubic yard front-load dumpsters. This $30,000 is included in the 2014 expenditure projection. The collection and processing of materials from the drop-offs is estimated at approximately $180,000 annually. The District is expected to launch the new drop-off program in the in the second quarter of 2014 so the projected cost to operate the drop-offs in 2014 is less than $180,000. The cost of the program from 2015 to 2023 is increased 1.8 percent annually from 2014 to 2023. This increase is based on the annual rate of inflation that was published in the U.S. Consumer Price Index in June, 2013. e. Institutional - County Office Building and School Recycling

The District contracts for recycling containers to be provided at county offices and schools and also pays for the processing of collected materials. The expenses associated with this line item for 2008 through 2010 are the actual costs for these contracted services. For 2011 through 2013, the District paid for servicing these containers through the contract with Penn-Ohio for the residential drop-off locations. Although drop-off recycling locations at county office buildings and school recycling will likely be serviced by the same contract as the District’s full-service drop-off locations in budget line item “d. Drop-offs, District,” the cost of managing these particular locations is listed separately in budget line item “2 e. Institutional - County Office Building and School Recycling.” Servicing these locations is projected to cost $5,000 annually from 2014 to 2023. This is a decrease from the past costs to operate the program. These drop-off sites will be converted from fiber-only drop-offs to single stream recycling drop-offs. The District plans to include these sites as an optional bid item when the request for proposals to service the District’s full-service drop-off sites listed in “2.d” is issued.

f. Yard Waste Management

Costs associated with this line item from 2008 through 2011 are for two programs the District used to provide. As one program, the District provided residential yard waste collection and mobile yard waste and brush grinding. The District also distributed backyard composting bins. Most of the expenses shown for 2008 were for grinding materials. The District also provided $6,000 to Ashtabula Township to compost its residents’ yard waste (since the Ashtabula City Compost Site closed). The District has not provided funding for residential yard waste collection since 2008. Starting in 2009, all expenses shown for this program were for yard waste grinding provided by a private contractor. In 2011, the contractor ground yard waste for four communities: Jefferson,


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Roaming Shores, Conneaut and Geneva. This program was suspended in 2012 due to insufficient funding, and the District does not anticipate funding yard waste management under this Plan Update.

g. HHW Collection

Expenses reflect the cost of the annual HHW collections sponsored by the District from 2008 to 2011. The cost of collecting lead acid batteries was included in this line item. The District suspended this program in 2012 due to insufficient funding, and the budget in this Plan Update does not allocate any money for the District to pay for a collection program during the planning period. However, the District would like to be able to offer a collection event if it is in the financial position to do so. Therefore, Ohio EPA included a household hazardous waste collection program in the list of budget priorities detailed in subsection F at the end of this section.

h. Scrap Tire Collection

Scrap Tire Collection expenses reflect the cost of the annual Tire Collection Day sponsored by the District as well as the cost of providing townships, villages, and cities with tire disposal for tires collected from roadsides. This program was suspended in 2013 due to insufficient funding, and the budget in this Plan Update does not allocate any money for the District to pay for a collection program during the planning period. As with the HHW collection program, the District would like to be able to fund local community scrap tire management efforts if it is in the financial position to do so. Therefore, Ohio EPA included a scrap tire management program in the list of budget priorities provided at the end of this section. The District also intends to pursue grant funding to provide this program. 3. District Education and Awareness Programs This category includes a portion of the expenses associated with education and awareness programs that the District provides to the residents, institutions, commercial businesses and industrial businesses located in Ashtabula County either directly by District staff or through a contract with the District. Since most of the programs under this category are performed by District’s staff the expenses associated with them are accounted for under line item 1.a. “District Administration Salaries”.

The following programs are covered under budget line item 1. a. “District Administration Salaries”:

Youth Education; Website; Public education regarding HHW Management; Public education regarding Special Waste Management;


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Public education regarding Scrap Tires; Public education regarding LABs; Businesses: grants and loan opportunities; Identify service providers and markets for businesses and industries; Annual newsletter; Business/Industry Recycling Guide; Aid small businesses in recycling; List of Recycling Service Providers; Public education through publicity and media; and List of vendors of recycled content products.

The necessary equipment, supplies and/or contracted services needed for these programs are typically funded under Education and Awareness Materials. Following is narrative that explains the expense projections provided for these programs in Table VIII-5:


Expenses related to materials used to offer education and awareness about general District programs (unrelated to the new PAYT trash collection/curbside recycling services in the city of Ashtabula or the new drop-off program). Expenses cover items such as: purchasing materials; paid advertisements through newspaper, radio, and other media; expenses related to providing education regarding yard waste management; and printing written documents. No expenses were incurred from 2010 to 2012, and no expenses were projected for 2013. Expenses for 2014 through 2023 are estimated at $1,500 annually. Some expenses in this category are purchases that last longer than a calendar year and are reusable. For this reason, costs were not projected to increase from year to year.


The District will make money available to communities that are interested in pursuing PAYT trash collection programs for the communities to use to develop bid specifications, issue requests for proposals, and develop contracts. This program is anticipated to begin in 2014. For purposes of budgeting, $10,000 has been allocated to this program throughout the planning period at a flat rate of $1,000 annually. It is likely that this will not be a regular expense each year of the planning period, but that expenses associated with this will occur only on a few occasions throughout the planning period. If this is the case, expenses in any given year may exceed the $1,000 that has been budgeted annually.

c. Outreach for New and Upgraded Programs

During the first three years of the planning period the District will focus its education and

awareness efforts on promoting the new District-wide drop-off program and the curbside


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recycling/PAYT trash collection program in the city of Ashtabula (and possibly other

communities). This program will provide the outreach and education before and after

the roll-out of the upgraded drop-off recycling program, as well as any new curbside

programs that are implemented. Expenses associated with this line item include the

possibility of purchasing billboard advertisements, newspaper advertisements and

inserts, door hangers, promotional items, video production, automated calls, contracting

for outreach assistance, and similar expenses.

In 2014 and 2015, $10,000 is budgeted annually and $5,000 is allocated for 2016. An

example of how the funds will be spent in 2014 is provided in the table below.

Outreach for New and Expanded Programs

2014 Details Upgraded Drop-off Program

Gazette Insert $480

Beacon Insert $825

Newspaper/Web Advertisements $1,000

Magnets $400

Website/social media/email blasts $0

Community Recycling Ambassadors $1,500

Ministerial Groups $0

Subtotal: $4,205

New City of Ashtabula Curbside Program

Beacon Insert $700

Website/social media/email blasts $0

Door Hangers (5000) $1,000

Automated Calls $1,000

Ministerial Groups $0

Magnets $2,100

Subtotal: $4,800

Misc. promotional expenses $995

Total: $10,000

4. Other District Programs This category encompasses the remaining programs in existence or to be implemented by the District that are not related to State Plan Goals 1, 2, 3, 4, 5, 6, and/or 7. Following is narrative that explains the expense projections provided for these programs in the above table:


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a. District Grant Program for Local Governments

The District will award grants to qualifying entities through this program to encourage local waste reduction and recycling efforts. The grants will be available to all cities, villages, and townships, within the District to help offset some of the costs of implementing new pay-as-you-throw and/or curbside recycling programs. The District will set aside $50,000 annually for this program from 2014 to 2016. Money that is not spent in one year will be kept in reserve along with the money made available in a subsequent year. In this way, the District can accumulate up to $150,000 by 2016 to make available as grants in subsequent years. A community that receives a grant through this program is not required to spend the money to directly pay for or offset the costs of a pay-as-you-throw and/or curbside recycling program. The community can use that money to fund other waste management programs, such as yard waste management, litter collection and prevention, scrap tire management, etc. However, a community can only qualify for a grant if it implements a pay-as-you-throw and/or curbside recycling program.


The District contracts with the Ashtabula County Health Department for inspection and enforcement activities related to solid waste. In the reference year, all expenses were for enforcement. Expenses for 2009 were for a combination of inspection/enforcement and well testing. In 2009, the District spent an additional $8,689.92 to cover split sample water testing for the monitoring wells at Geneva Landfill. In 2011, the District spent $25,000 for the County Health Department to perform inspections and conduct enforcement related activities for solid waste. Expenses in 2012 and 2013 are as the District reported them in the quarterly fee reports for those years. Funding to the Health Department is budgeted at $25,000 annually for the remainder of the planning period.


In the past, the District paid for the expenses incurred to provide this program through a separate fund which was related to grant money the District received through grant programs administered by the former Ohio Department of Natural Resources’ Division of Recycling and Litter Prevention. The District suspended this program in 2009 due to insufficient funding. The District does not anticipate providing this program during the planning period covered by this Plan Update.

d. Litter Collection Development

In 2008 and 2011, the District provided a very small amount of money for this program. It is not anticipated that any funding will be provided in the future.


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e. Recycling Transfer Station

In partnership with the city of Ashtabula, the District will establish and operate a recycling transfer station to handle the recyclable materials collected through the curbside and drop-off programs. The District will use the existing building that houses the city of Ashtabula sanitation department’s indoor recycling drop-off at the Sanitation Department’s transfer facility. The District intends to hire a private waste company to operate the facility. The District provided funding to build the facility, but the building is currently owned by the city of Ashtabula. At this time it is unclear whether the District will need to pay for modifications to the existing building and purchase equipment, and if so, the exact costs of these expenditures. The exact costs will be determined through the process of hiring a company to operate the transfer facility. As a contingent expenditure, this Plan Update budgets an initial investment of up to $50,000 to outfit the building with necessary equipment and make other changes necessary to begin operating the recycling transfer station. The Plan Update budgets an additional $10,000 annually from 2015 to 2022 to cover other potential costs associated with monitoring and operating the facility and administering the contract for operations. The District has not yet issued a request for proposals to solicit bids from companies to modify and operate the facility. The exact amount that the District will need to spend will be determined through the process of selecting a company to manage the facility and entering into a contract with the chosen company. It is not expected to exceed the projected amounts.

C. Funds Allocated from ORC 3734.57(B), ORC 3734.572 and ORC 3734.573

The District collects the disposal fee authorized under ORC Section 3734.57(B). Allocations of this money must be made in accordance with the requirements of ORC Section 3734.57(G). In Table VIII-6, the amount of money allocated in each category for each year of the planning period is shown.


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Table VIII-6. Revenue and Allocations in Accordance with ORC 3734.57 (B), ORC 3734.572 and ORC 3734.573

Year

Revenue Allocations of ORC 3734.57 Revenue for the Following Purposes1

Year-End Balance

($) (in $) Total

Expenditures ($)

1 2 3 4 5 6 7 8 9 10

2007 $559,537

2008 $669,326 $9,810 $585,611 $31,371 $0 $0 $0 $0 $0 $0 $0 $626,792 $602,071

2009 $504,149 $0 $688,778 $71,432 $0 $0 $0 $0 $0 $0 $0 $760,210 $346,010

2010 $563,274 $0 $577,596 $62,742 $0 $0 $0 $0 $0 $0 $0 $640,338 $268,946

2011 $449,603 $4,150 $423,554 $25,000 $0 $0 $0 $0 $0 $0 $0 $452,704 $265,845

2012 $394,956 $0 $342,058 $40,000 $0 $0 $0 $0 $0 $0 $0 $382,058 $278,743

2013 $255,301 $0 $310,884 $25,000 $0 $0 $0 $0 $0 $0 $0 $335,884 $198,160

2014 $311,053 $0 $384,549 $25,000 $0 $0 $0 $0 $0 $0 $0 $409,549 $99,664

2015 $347,177 $0 $333,067 $25,000 $0 $0 $0 $0 $0 $0 $0 $358,067 $88,774

2016 $383,794 $25,000 $332,607 $25,000 $0 $0 $0 $0 $0 $0 $0 $382,607 $89,961

2017 $421,215 $15,000 $292,228 $25,000 $0 $0 $0 $0 $0 $0 $0 $332,228 $178,948

2018 $416,059 $10,000 $301,931 $25,000 $0 $0 $0 $0 $0 $0 $0 $336,931 $258,076

2019 $416,515 $5,000 $306,718 $25,000 $0 $0 $0 $0 $0 $0 $0 $336,718 $337,873

2020 $416,969 $0 $296,589 $25,000 $0 $0 $0 $0 $0 $0 $0 $321,589 $433,253

2021 $418,287 $0 $301,548 $25,000 $0 $0 $0 $0 $0 $0 $0 $326,548 $524,992

2022 $418,731 $0 $306,595 $25,000 $0 $0 $0 $0 $0 $0 $0 $331,595 $612,128

2023 $419,177 $0 $311,730 $25,000 $0 $0 $0 $0 $0 $0 $0 $336,730 $694,575

1The categories are as follows: "1" - preparation and monitoring of plan implementation; "2" - implementation of approved plan; "3" - financial assistance to boards of health for SW enforcement; "4" - financial assistance to counties within the district to defray the costs of maintaining roads and other

public services related to the location or operation of solid waste facilities; "5" - contracts with boards of health for collecting and analyzing samples from water wells adjacent to solid

waste facilities; "6" - out-of-state waste inspection program; "7" - financial assistance to local boards of health to enforce ORC 3734.03 or to local law enforcement

agencies having jurisdiction within the district for anti-littering; "8" - financial assistance to boards of health for employees to participate in Ohio EPA's training and

certification program for solid waste operators and facility inspectors; "9" - financial assistance to local municipalities and townships to defray the added cost of roads and services

related to the operation of solid waste facilities. “10” –compensation to affected community

Sample Calculations:

Year-End Balance = Previous Year-End Balance + Revenue – Expenditures from Allocations of ORC 3734.57 Revenue for Purposes 1-10

Year-End Balance for 2011 = $268,946 + $449,603– $452,704 Year-End Balance for 2011 = $265,845


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Sources of Information:

Revenue from Table VIII-3 Expenditures from Table VIII-5 Cumulative balances for 2008 through 2011 taken from the District’s quarterly fee reports for those years.

D. Contingent Funding and Financing

Now that Waste Management has adequate capacity to operate the Geneva Landfill far into the future and to begin accepting larger quantities of waste, Ohio EPA does not consider the District’s ability to fund this Plan Update to be an issue of concern during this planning period. While the District’s fund balance is projected to become very low in the first two years of the plan, revenues have been projected at a conservative level and several of the budgeted expense items may not be necessary during the first years of the plan. As a result, it is anticipated that while the District’s account balance will remain low, stable funding sources are conservatively projected throughout the planning period. Therefore, no contingency funding options have been identified and Table VIII-7 has been omitted. E. Summary of Costs and Revenues

Table VIII-8 provides a summary of the District's expected revenues, projected expenditures, projected annual deficits/surpluses, and cumulative cash balances. The revenue entries correspond directly to the revenue entries in Table VIII-3 and are explained in the notes following Table VIII-3. The expenditure entries on this table correspond directly to Table VIII-5. The descriptions for the entries are all included in the narrative following Table VIII-5.

Ashtabula County Solid Waste Management District

May 2, 2014

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Table VIII-8 Summary of District Revenue and Expenditures

Program or Activity

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Carryover Balance from Previous Year

$559,537 $602,071 $346,010 $268,946 $265,845 $278,743 $198,160 $99,664 $88,774 $89,961 $178,948 $258,076 $337,873 $433,253 $524,992 $612,128

Revenues $669,326 $504,149 $563,274 $449,603 $394,956 $255,301 $311,053 $347,177 $383,794 $421,215 $416,059 $416,515 $416,969 $418,287 $418,731 $419,177

Expenditures

1. District Administration

a. Salaries $141,391 $151,124 $143,294 $59,688 $46,758 $52,299 $66,000 $60,000 $61,020 $62,057 $63,112 $64,185 $65,276 $66,386 $67,515 $68,662

b. Office Overhead $19,863 $37,431 $14,304 $9,318 $1,811 $1,247 $12,109 $12,327 $12,549 $12,775 $13,005 $13,239 $13,477 $13,720 $13,967 $14,218

c. Legal Services $5,674 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

d. Contract Services $9,810 $0 $0 $4,150 $0 $0 $0 $0 $25,000 $15,000 $10,000 $5,000 $0 $0 $0 $0

e. Sundry $1,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

f. Reimbursement to Ohio EPA

$0 $0 $0 $0 $0 $0 $1,000 $0 $0 $10,000 $15,000 $15,000 $0 $0 $0 $0

2. District Recycling Programs

a. Drop-Offs, City of Ashtabula

$40,000 $40,000 $40,000 $40,000 $0 $8,000 $4,000 $0 $0 $0 $0 $0 $0 $0 $0 $0

b. Drop-Offs, City of Conneaut

$19,000 $19,000 $9,500 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

c. Drop-Offs, City of Geneva

$15,195 $15,000 $15,000 $15,579 $15,000 $23,000 $4,000 $0 $0 $0 $0 $0 $0 $0 $0 $0

d. Drop-Offs, District $268,553 $282,185 $292,090 $228,181 $273,088 $220,242 $179,940 $183,240 $186,538 $189,896 $193,314 $196,794 $200,336 $203,942 $207,613 211,350


May 2, 2014

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Table VIII-8 Summary of District Revenue and Expenditures (continued)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

e.

Institutional - County Office Building and School Recycling

$11,997 $11,361 $8,884 $0 $0 $0 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000

f. Yard Waste Management

$13,875 $87,870 $40,337 $44,400 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

g. HHW Collection $18,015 $26,156 $10,427 $7,012 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

h. Scrap Tire Collection

$22,957 $17,441 $3,760 $18,797 $5,018 $6,096 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

3. District Education and Awareness Programs


$3,896 $1,210 $0 $0 $383 $0 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500


$0 $0 $0 $0 $0 $0 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000

c. Outreach for New and Updated Programs

$0 $0 $0 $0 $0 $0 $10,000 $10,000 $5,000 $0 $0 $0 $0 $0 $0 $0

Other District Programs

a. District Grant Program for Local Government

$0 $0 $0 $0 $0 $0 $50,000 $50,000 $50,000 $0 $0 $0 $0 $0 $0 $0


May 2, 2014

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2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023


$31,371 $71,432 $62,742 $25,000 $40,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000


$4,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

d Litter Collection Development

$195 $579

e Recycling Transfer Station

$0 $0 $0 $0 $0 $0 $50,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000

Total Expenses $626,792 $760,210 $640,338 $452,704 $382,058 $335,884 $409,549 $358,067 $382,607 $332,228 $336,931 $336,718 $321,589 $326,548 $331,595 $336,730

Difference $42,534 ($256,061) ($77,064) ($3,101) $12,898 ($80,583) ($98,496) ($10,890) $1,187 $88,987 $79,128 $79,797 $95,380 $91,739 $87,136 $82,447

Ending Balance $602,071 $346,010 $268,946 $265,845 $278,743 $198,160 $99,664 $88,774 $89,961 $178,948 $258,076 $337,873 $433,253 $524,992 $612,128 $694,575

Sources of Information:

Revenue from Table VIII-3 Expenditures from Table VIII-5 Sample Calculations:

Difference = Revenue – Expenditures Difference for 2011 = $449,603 - $452,704 Difference for 2011 = -$3,101

-


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F. Ashtabula Budget Priorities

The budget in this Plan Update is based on the District implementing the programs that are described in Section V. These programs are heavily focused on establishing a comprehensive recycling infrastructure in the county. The District, working with its policy committee, has identified a number of other programs it would like to provide but that are not currently accounted for in the budget. The District has provided many of these programs in the past. There is significant uncertainty regarding how much revenue the District will earn from its disposal fee. Consequently, Ohio EPA projected revenue conservatively. Furthermore, based on projected revenue and expenditures, the District will be operating with an extremely low cash balance for at least the first few years of the planning period. Before budgeting for additional programs, Ohio EPA believes it is important that the District accumulate a minimum cash balance to ensure that the District can operate its core programs if unexpected decreases in revenue or increases in necessary expenditures occur. In order to accommodate the District’s desire to provide additional programs and afford the District with flexibility to implement those programs, Ohio EPA incorporated a contingent list of prioritized programs that the District can implement if it realizes a more favorable financial position than is projected. How many of these programs the District can implement and when the District can implement them will depend upon the District’s financial position. If the District has enough uncommitted money, either due to higher than projected revenue or lower than anticipated programs costs, the District can implement as many of these prioritized programs as it can afford. Ohio Revised Code Section 3734.574 (E) requires the District to submit quarterly proposed budgets to Ohio EPA 30 days prior to each calendar quarter. The District will use these quarterly budgets to plan for implementing contingent programs. In the quarterly budget, the District will project how much revenue it anticipates receiving in the upcoming quarter, how much the District anticipates spending on budgeted programs during the quarter, and how much the District anticipates accumulating as a cash balance. Once the District can demonstrate that is has enough revenue to fund all budgeted programs, can implement those programs as described in this plan, and has accumulated a stable balance of at least $200,000, the District can budget for implementing programs from the prioritized list below. The District and the policy committee identified the following as programs they would like to implement if there is enough money available:

Scrap Tire Programs

Household Hazardous Waste Collection

School Education Programs

Disaster Debris Management


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Scrap Tire Funding: In the past, the District has held an annual scrap tire collection day and has paid for managing tires that local communities collect from roadsides. The District prefers to eliminate District-held collection events in favor of locally provided programs. To facilitate this, the District would like to make grants available to local communities for scrap tire related activities. Qualifying projects include local scrap tire cleanups, locally-held scrap tire collection events, and collecting and disposing of scrap tires from roads. From 2008 to 2011, the District spent on average approximately $12,300 on scrap tire programs. That average includes three years in which the District did not hold collection events. Including only those years in which collection events were held results in an average cost of closer to $19,700. For purposes of triggering the decision to evaluate providing grants to local communities, this plan assumes that the District will make up to $15,000 available in grants to local communities for scrap tire related activities. The District will provide a more accurate estimate of the total amount the District will make available in grants in its quarterly proposed budgets. Household Hazardous Waste Collection: In the past, the District has conducted one-day household hazardous waste collection events for residents at the county fairgrounds. The District would prefer to offer a collection program that operates over a longer period of time, such as weekly or bi-weekly collections for a month each year. The District would use the City of Ashtabula’s new recyclable transfer facility as the collection location to reduce the cost of the collection program and to eliminate hassles associated with using the fairgrounds. The District may also be able to obtain a lower cost contract with a commercial hazardous waste management company through the northeast Ohio household hazardous waste cooperative. In 2011, the last year the District offered a household hazardous waste collection event, the District charged residents a user fee to participate in the program. The District anticipates assessing a user fee for any future program. In 2011, the District spent $7,012 to hold the collection event and received $1,455 in user fees for a net program cost of $5,557. That was the lowest cost the District paid for a collection event since 2008. The 2009 collection event was the most costly event the District held. That event cost the District more than $26,000, but the District did not assess a user fee. Providing a seasonal collection program will likely cost the District more than the District’s traditional collection events. The District will be able to offset some of that cost with user fees. On average, one-day collection events from 2008 to 2011 cost the District $15,400. For purposes of triggering the decision to evaluate providing a collection program, this plan assumes that the program would cost the District $20,000. The District will provide a more accurate estimate of the cost to provide the collection program in its quarterly proposed budgets. School Education: The education strategy in this plan is focused on providing outreach to the residential sector regarding the District’s new drop-off network and the curbside recycling/pay-as-you-throw trash collection program in the City of Ashtabula.


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Consequently, the plan does not provide for extensive classroom education. The District and the policy committee believe that educating school children is still an important component of the overall education strategy. In the past, the District’s education specialist has provided all in-school education programs for the District. In order to alleviate the burden of the District’s education needs on the District’s employees, the District wants to contract with another agency to provide school-based education programs. A number of other Ohio solid waste management districts contract with their local Ohio State University Extension offices. The District is currently looking into how much funding the Ashtabula extension office would need to provide the District’s school education programs. For purposes of triggering the decision to evaluate funding a contract with an education provider, this plan assumes that the program would cost the District no more than $25,000. The District will provide a more accurate estimate of the cost to provide the collection program in its quarterly proposed budgets. Disaster Debris Management: Although this was not one of the policy committee’s priorities, both the District and Ohio EPA believe that it is important for the District to identify ways that it can provide assistance during a disaster event. The District has not provided funding for disaster debris management in the past. If the District elects to provide funding for disaster debris management, then the District will create a dedicated fund to be used in the event of a disaster event. Once the District creates the fund, the money will be spent only if needed. If the District does not spend money from the fund for disaster debris management, then the full amount of money in the fund remains for future years as part of the District’s cash balance. For purposes of triggering the decision to evaluate funding a disaster debris management program, this plan assumes that the District would make up to $25,000 available for this program as a contingency expenditure. The District may choose to “deposit” money into the disaster debris management fund over several years. The District will demonstrate how the fund will be created in its quarterly proposed budgets.

Documents

Section VIII. Cost and Financing of Plan Implementation