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FY 2025/26 Quarterly Budget Update
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Requested Action(s)
recommendation
This item is for informational purposes only. No further action is required.
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Financial Impact:
Background Information:
Attached is a spreadsheet providing a summary of second quarter revenues and expenditures as of December 22, 2025.
Income
The FY 2025/2026 budget utilizes the following revenue sources and is expected to result in a contingency of $43,854.83 (4.57%):
- Interest (440300) income is relative to federal interest rates. Pursuant to the guidance provided by the Tehama County Auditor-Controller for the purposes of budgeting interest income, interest revenue is predicted to yield approximately 2% for FY 2025/2026.
- Gate Fees (461001), which are budgeted based on a flat monthly fee of $70,000 per month for FY 2025/2026, represent five months of gate fee revenues.
- Hazardous Waste Fees (461005) represents HHW business fees, donations made to the used oil collection facility (ABOPS) and Ag Oil Facility, fees for load check waste from Waste Connections and the first quarter PaintCare reimbursement for our REAP paint reuse program.
- Miscellaneous Revenue (471120) generally includes grazing lease fees, and other small amounts of revenue.
- Interfund Revenue (461070) is reimbursed labor costs for grant-related work.
- Fund Balance Available (301900) income utilizes available funds from previous fiscal years as a funding source.
Expenses
Expenses are projected as described below.
- Salary/Wages (510100), PERS (510200), OASDI (510210), Group Insurance (510300), and Unemployment Insurance (510310) take into consideration normal step increases at anniversary dates and the recruitment of an Organic Materials Program Coordinator.
- Pay in Lieu/Misc Payouts (51015) includes 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.
- Workers Compensation (510400) rates are expected to decrease slightly.
- Property, Crime, Liability, and Pollution Insurance (531500) includes payment of crime, liability and pollution coverage.
- 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, California Association of Recycling Market Development Zones, California Product Stewardship Council, and Solid Waste Association of North America.
- 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.
- Professional/Special Services (53230) is budgeted for $90,246. Expenses to be funded through current year gate fees include attorney fees, independent audit costs, use of personnel at the Tehama County Auditor-Controller’s office for various accounting services, an administrative fee pursuant to the agreement between the Agency and the County, engineering assistance to assess a new site for the Corning HHW facility, and janitorial services. Below is an itemized breakout of budgeted expenses:
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|
FY 25/26 |
As of 12/22/25 |
|
Attorney Fees |
$15,000 |
$3,095.40 |
|
Accounting Services Agreement |
$10,000 |
$1,671.18 |
|
Administration Fees |
$24,246 |
$11,506.50 |
|
Audit |
$23,000 |
$0.00 |
|
Lawrence & Associates |
$10,000 |
$0.00 |
|
Miscellaneous |
$2,000 |
$0.00 |
|
Janitorial Services |
$6,000 |
$1,900.00 |
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Total |
$90,246 |
$18,173.08 |
- Employee Travel/Training (53290) and Transportation (53291) have remained similar to previous fiscal years and include typical travel, training, and fuel costs.
- Utilities (53300) reflect anticipated costs for PG&E, Hue & Cry, and fire alarm maintenance, monitoring and testing.
- Hazardous Waste Disposal (558007) is budgeted at $160,000. The Agency is still waiting on several invoices from our contractor. Greater details on these expenses will be known by the April Full Board meeting.
- Litter Abatement/Illegal Dumping funds illegal dumping on public roads outside of Baker and Plymire including Public Works illegal dumping clean-up costs throughout Tehama County, PATH encampment cleanups on public property, and AB 109 illegal dumping clean-up costs in the community.
As of December 22, 2025, revenues exceed expenditures by $133,750.02. Income is 46.67% of projected revenue for the year. Expenditures are 34.31% of projected expenditures for the year. The retained earnings balance will be reported on at the meeting.
Respectfully submitted,
Paul Freund
Agency Manager