FY 18 Annual Report

Solid Waste

2018

CITY OF SPENCER, IOWA

Departmental Highlights

Budget Review The city owns and operates the solid waste collection system. The Solid Waste division operates the City's residential and commercial garbage and recycling collection, the Spencer transfer station, and appliance and e-waste de-manufacturing operations. The department is primarily supported through user fees. The department operates weekly garbage and recycling services for all properties located within city limits. While collected weekly, the recycling route operates in two cycles, with individual service being bi-weekly. Residential garbage and recycling service is offered through the use of automated collections trucks. In additional to at the curb service, residents can also take garbage, appliances, furniture, e-waste, and scrap metal tot eh transfer station. The Transfer station also has additional facilities for the acceptance of recycling materials, including glass collection. The department has one capital reserve account which is used for all capital equipment and infrastructure projects for the division. City financial policy requires the city to carry a positive cash balance in each of the enterprise funds at the end of the fiscal year. At a minimum, the balance should be 25% of the department appropriations for the succeeding fiscal year to provide adequate cash flow and emergency cash funding. Any operational revenues above the minimum balance may be transferred to the capital reserve accounts. In FY 18, the department established an additional recycling drop off site for co-mingled and glass collection in a partnership with Wal- Mart. The city has placed two collection roll-off containers in the Wal-Mart parking lot for residents to utilize. The department is also working towards the installation of a scale at the transfer station facility. This will enable the division to collect materials on a weight based fee system instead of the visual calculation currently being used. Pursuant to state law, the department is required to maintain a closure account for the transfer station. The funds set aside in this fund would be used at the time the transfer station is permanently closed and would go to help cover those costs. Funding for this fund comes form direct transfer of funds from the operations. Total expenditures for the department totaled $2,303,606.45 for FY 18, which is a decrease of $66,461.40 (-2.80%) compared to FY 17. Departmental operations increased in FY 18 by $88,450.63 , however most of this increase can be attributed to an increase in the amount of money transferred to other city funds, including the Solid Waste Reserve account. The one category for operations that saw an increase was the repairs, maintenance and utilities category. The cause of the increase was due to additional expenses related to building maintenance and repair, grounds maintenance and repair, fuel expenses, vehicle maintenance and repair and container repairs. The majority of these increases were due to normal operations or were out of the control of the city (i.e. fuel expenditures). Within the grounds maintenance and repair, the city expended one time money to construct a bunker for the collection of galls prior to sending it off to be recycled. Capital expenditures for the department decreased $154,912.03 in FY 18. In FY 17, the City purchased additional property surrounding the Transfer Station for future growth. Capital projects completed in FY 18 include the purchase of additional roll off containers and expenditures related to the installation of the scale at the transfer station, which will be constructed in FY 19. Overall, the department expended 101.33% of its budget in FY 18. Operational revenues increased by $47,392.23 in FY compared to FY 17. Increases in revenuer were experienced from the sale of recyclables and transfer station receipts. Some of this increase was due to an increase in the amount of shingles being accepted due to hail storms that hit the area in June.

126