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Fiscal Year 2025/2026 Final Budget
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Requested Action(s)
recommendation
Review and approve the final FY 2025/2026 Budget, as presented.
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Financial Impact:
Background Information:
Attached is the recommended final budget for fiscal year 2025/2026.
Below is a description of major changes in revenues and expenses as compared to the preliminary approved FY 2025/2026 budget:
Income
The proposed FY 2025/2026 budget utilizes the following revenue sources and would result in a contingency of $42,503.83 (4.43%):
- Interest (440300) income is relative to federal interest rates. The Agency follows the guidance provided by the Tehama County Auditor-Controller for the purposes of budgeting interest income. The recommendation from the Auditor-Controller is a 2% interest rate.
- Gate Fees (461001) have been budgeted based on a flat fee. Despite the fact that expenses are projected to increase over FY 2024/2025 due to changes listed in this narrative, staff is not recommending an increase in the monthly fee of $70,000 due to the increase in the tipping fee as a result of the new operations contract. FY 2024/2025 resulted in a revenue surplus due to the Recycling Program Analyst position vacant for four months and the very sad unexpected death of the Agency Manager. Staff is proposing to use a small portion of the surplus to mitigate further tipping fee increases at this time. The Agency has a healthy retained earnings balance. Most increases listed in the proposed budget are outside of the Agency’s control, with very few exceptions.
- Hazardous Waste Fees (461005) includes PaintCare reimbursements for managing paint reuse and reimbursement for home-generated sharps disposal. A small amount of revenue is also attributed to household hazardous waste business fees.
- Miscellaneous Revenue (471120) generally includes grazing lease fees, and other small amounts of revenue.
- Interfund Revenue (461070) is reimbursed salary/wages for direct labor on grant-related work.
-Fund Balance Available (301900) income utilizes available funds from previous fiscal years as a funding source.
Expenses
Expenses would increase $39,178.24 over the previous fiscal year, as described below.
- Salary/Wages (510100), Overtime (510120), PERS (510200), OASDI (510210), Group Insurance (510300), and Unemployment Insurance (510310) take into consideration normal step increases at anniversary dates and the current employer PERS contribution rate. The Agency no longer funds a second Recycling Program Analyst I/II. This position will be removed when the Agency transitions to an internal staffing structure.
- Pay in Lieu/Misc Payouts (51015) - Of current Agency staff, one staff member elected to receive payment for accrued vacation or Personal Time Off.
- PERS Unfunded Liability and ADP Misc PERS Unfunded are the Agency’s portion of the PERS unfunded liability, currently at $48,469.14 for FY 2025/26, and an additional discretionary payment to pay down the unfunded PERS loan balance faster. There will be some fluctuation in the Agency’s annual payment as it is based upon the prior year’s actual PERS payroll.
- Workers Compensation (510400) rates are expected to increase; however, the actual rate was unknown at the time this agenda item was prepared. As such, staff assumed a 10% increase over FY 2024/2025.
- Property, Crime, Liability, and Pollution Insurance (531500) includes an anticipated 25% increase in property liability premium over FY 2024/2025.
- Maintenance of Equipment (53170) includes typical maintenance of equipment.
- Maintenance Structures-Improvement of Grounds (53180) takes into consideration the cost of maintaining the fire suppression systems at the Agency’s two Household Hazardous Waste facilities.
- Membership and Dues (53200) includes membership to the Rural Counties’ Environmental Services Joint Powers Authority, Solid Waste Association of North America, California Association of Recycling Market Development Zones and California Product Stewardship Council.
- Misc Expense (53210) is budgeted at $16,000. This expense account is utilized for Board per diem compensation for meeting attendance.
- Office Expense includes typical office supplies and a monthly lease payment for a multifunction copier.
- Professional/Special Services (53230) is proposed to be budgeted for $90,246. Expenses to be funded through current year franchise fees include attorney fees, independent audit costs, use of personnel at the Tehama County Auditor-Controller’s office for various accounting services, and an administrative fee pursuant to the agreement between the Agency and the County. The administrative fee between the Agency and the County increased slightly over FY 2024/2025. The independent audit budget has been increased to reflect the amount to hire a new independent auditor, per the proposed Audit Services Agreement included in this agenda. Below is an itemized breakout of budgeted expenses:
|
|
FY 24/25 |
FY 25/26 |
|
Attorney Fees |
$15,000 |
$15,000 |
|
Accounting Services Agreement |
$10,000 |
$10,000 |
|
Administration Fees |
$23,013 |
$24,246 |
|
Audit |
$15,000 |
$23,000 |
|
Lawrence & Associates |
$9,000 |
$10,000 |
|
Miscellaneous |
$2,000 |
$2,000 |
|
Janitorial Services |
$6,000 |
$6,000 |
|
Express Employment Professionals |
$3,515.40 |
$0.00 |
|
Total |
$83,528.40 |
$90,246 |
- Special Departmental Expense has been decreased slightly for any remaining work needed to finish transitioning the 4Rs Kids Exhibit from the bus to the trailer.
- Employee Travel/Training and Transportation (53290 and 53291) is expected to remain the same for FY 2025/26 and includes typical travel, training, and fuel costs.
- Utilities (53300) reflects anticipated costs for PG&E, Hue & Cry, and fire alarm maintenance, monitoring and testing.
- Hazardous Waste Disposal (558007) is proposed to be budgeted at $160,000. This was increased to reflect the new rates under the current agreement for services that expires December 31st, 2027.
- Litter Abatement/Illegal Dumping funds illegal dumping on roads outside of Baker and Plymire and also supports AB 109 illegal dumping clean-up costs in the community. Pursuant to the Agency’s policy, $12,000 is allocated to PATH and the remainder is available to fund waste disposal resulting from cleanups on public land.