2c. Update on the FY 21 Proposed Budget Presentation — original pdf

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FY21 Proposed Budget Presentation July 17, 2020 Presentation Topics • Clean Community Fee Overview – Clean Community Fee FY20 Budget Amendment • Curbside Collection Services Overview – Curbside Services Cost of Service – Curbside Collection Customers – Trash Cart Distribution • FY21 Proposed Budget – Budget by Strategic Outcome – Proposed Rate Changes – Fund Summary – Top 10 Budgeted Expense Categories – Capital Improvement Plan July 17, 2020 Zero Waste Advisory Commission 2 Clean Community Fee Purpose • Clean Community Fee is established by ordinance to provide litter and nuisance abatement, street cleaning, household hazardous waste disposal, and the implementation and enforcement of the URO • Billed to all residential and commercial customers in the city including apartment complexes and other multi-family customers • Clean Community Customer Count (as of May 2020) ‒ Residential – 409,776 customers ‒ Commercial – 25,796 customers • No change in rate for FY21 July 17, 2020 Zero Waste Advisory Commission 3 FY20 Clean Community Fee Budget Amendment Increase levels of street sweeping services – Additional crews and equipment for enhanced street sweeping $1,972,100 Increase levels of community litter abatement – Targeted team within ARR for citywide service enhancements – Partnership with Public Works on rights-of-way – Expanded Violet Bag service level – Parks grounds litter abatement – Downtown Austin Community Court partnership $538,500 $200,000 $252,500 $125,000 $181,200 Total: $3,269,300 Total FTE: 12 July 17, 2020 Zero Waste Advisory Commission 4 Curbside Collection Services • Supported by Trash Cart Fees – Trash Collection • Residential 208,992 (as of May 2020) • Commercial 3,274 (as of May 2020) Trash Cart Customers Commercial 2% Residential 98% July 17, 2020 Zero Waste Advisory Commission 5 Curbside Collection Trash Cart Size Distribution Residential Trash Cart Size Jan 2016 Jan 2017 Jan 2018 Jan 2019 Jan 2020 24 gallon 32 gallon 64 gallon 96 gallon Trash Cart Size 24 gallon 32 gallon 64 gallon 96 gallon 7% 22% 59% 12% 12% 25% 52% 11% 8% 23% 57% 12% 14% 26% 50% 10% 9% 24% 55% 12% 15% 27% 48% 10% 10% 24% 54% 12% 16% 27% 47% 10% FY 2021 Projected FY 2022 Projected FY 2023 Projected FY 2024 Projected FY 2025 Projected 5% 22% 60% 13% 11% 25% 53% 11% July 17, 2020 Zero Waste Advisory Commission 6 Curbside Collection Services • Supported by Base Customer Fee – Recycling Collection – Yard Trimming and Organics Collection – Brush Collection and Processing – Bulk Collection – Residential 204,640 (as of May 2020) – Commercial 2,160 (as of May 2020) Base Customers Commercial 1% Residential 99% July 17, 2020 Zero Waste Advisory Commission 7 Curbside Collection Customers Residential Commercial Base Base Organics Customers Residential Commercial Base Base Organics Customers July 17, 2020 Jan 2016 190,594 Jan 2017 192,716 Jan 2018 197,598 Jan 2019 200,067 Jan 2020 203,753 2,435 2,356 2,233 2,100 2,124 ~14,000 ~14,000 ~52,000 ~90,000 ~145,000 FY 2021 Projected FY 2022 Projected FY 2023 Projected FY 2024 Projected FY 2025 Projected Growth Growth Total Cust. Total Cust. Growth Total Cust. Growth Total Cust. Growth Total Cust. 2.954 206,707 2,997 209,704 3,041 212,745 2,766 215,511 2,694 218,205 (106) 2.018 (101) 1,917 (96) 1,821 (91) 1,730 (87) 1,643 61,508 206,707 2,997 209,704 3,041 212,745 2,766 215,511 2,694 218,205 Zero Waste Advisory Commission 8 FY21 Curbside Collection Cost of Service Service Provided Direct Annual Indirect Annual Expenses Expenses Total Annual Cost of Service Residential Recycling Composting Collection Brush Collection Bulk Collection Brush Processing Base Curbside Collection COS Other Offsetting Revenue $13.4 $8.3 $2.0 $3.6 $0.9 $28.2 Net Cost of Base Curbside Collection Services Trash Collection Cost of Service $16.2 Other Offsetting Revenue Net Cost of Curbside Trash Collection Service ($ in millions) $8.8 $8.1 $1.8 $2.5 $0.8 $22.0 $2.4 $12.8 $0.5 $22.2 $16.3 $3.8 $6.1 $1.8 $50.2 $29.9 Average Monthly Cost Per Residential Customer $ 8.86 $ 6.52 $ 1.51 $ 2.43 $ 0.70 $ 20.02 $ 0.94 $ 19.08 $ 11.22 $ 0.21 $ 11.01 July 17, 2020 Zero Waste Advisory Commission 9 Proposed Budget FY21 Council Strategic Outcomes July 17, 2020 Zero Waste Advisory Commission 10 Proposed Rate Changes Residential Base Customer Fee $2.60 96-Gallon Cart Fee $1.90 Typical Residential Customer Monthly Bill Example: Clean Community Fee Base Fee 64-Gallon Trash Cart Total Bill FY20 $4.70 $14.70 $10.25 $29.65 FY21 $4.70 $17.30 $10.25 $32.25 Change - - $2.60 $2.60 July 17, 2020 Zero Waste Advisory Commission 11 FY21 Proposed Fund Summary Snapshot (in Millions) 2017-18 2018-19 2019-20 2019-20 2020-21 Actual Actual Estimated Amended Proposed Beginning Balance $12.0 $17.2 $17.5 $17.8 $12.2 Total Available Funds $93.9 $94.5 $95.9 $97.1 $103.9 Revenue Program Requirements Collection Services Support Services Litter Abatement Operations Support Waste Diversion Remediation Other Requirements Total Other Requirements Transfers Out Total Transfers Out Total Program Requirements $64.6 $68.1 $72.5 $37.8 $40.3 $9.8 $5.7 $4.8 $4.9 $1.6 $9.4 $6.3 $5.4 $5.1 $1.6 $42.1 $10.3 $7.3 $6.8 $4.8 $1.2 $41.4 $11.3 $8.0 $7.6 $6.2 $1.3 $75.8 $44.6 $11.7 $8.1 $7.4 $5.8 $1.4 $78.9 $1.9 $2.3 $1.8 $2.6 $2.1 $22.4 $24.6 $26.9 $27.1 $25.2 Total Requirements $88.9 $95.0 $101.2 $105.5 $106.1 Excess (Deficiency) of Total Available Funds Over Total Requirements Adjustment to GAAP Ending Balance Note: Numbers may not add due to rounding. $4.9 $.2 $17.2 ($.5) $.8 $17.5 ($5.3) $.0 $12.2 ($8.4) $.0 $9.4 ($2.3) $.0 $10.0 July 17, 2020 Zero Waste Advisory Commission 12 Proposed Revenue July 17, 2020 Zero Waste Advisory Commission 13 Top 10 FY21 Proposed Expense Categories Expense Category FY21 Proposed Budget (in millions) Percent of Total FY21 Proposed Budget Personnel (Wages, Overtime, Insurance, Taxes, etc.) Capital Spending – vehicles, equipment and others Preventative maintenance and repairs on ARR fleet Payment for debt financed Capital Items Recycling processing contracts Landfill disposal contract Citywide allocation for Controller’s office, Treasury, City Manager Office, Budget Office, etc. Fuel for ARR fleet Billing System Support Replacement Cart Purchases TOTAL $45.5 $11.7 $10.5 $4.8 $5.0 $4.7 $3.7 $2.3 $1.8 $1.6 $91.7 43% 11% 10% 5% 5% 4% 3% 2% 2% 2% 86% * *Department-wide Contractuals and Commodities 14% July 17, 2020 Zero Waste Advisory Commission 14 Capital Improvement Plan Subprojects by Category FY21 Spending Plan Vehicles and Equipment Light, Medium, and Heavy Duty Equipment and Vehicles ARR Vehicle Fleet Technology Upgrades Multi-Year Specialty CBD and Public Litter & Recycling Containers Buildings and Improvements Northeast Service Center – Feasibility Study Security System Upgrades Landfill Mabel Davis Leachate Investigation and Remediation TOTAL $11,600,005 $1,363,198 $60,000 $194,299 $110,000 $130,021 $13,457,523 July 17, 2020 Zero Waste Advisory Commission 15 QUESTIONS